Ohio construction service contract template

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How Ohio construction service contract Differ from Other States

  1. Ohio requires strict adherence to the Home Construction Service Suppliers Act, which sets unique standards for residential contracts.

  2. Ohio mandates specific lien waivers and notices to owners that must be presented and acknowledged during the construction process.

  3. Unlike some states, Ohio law prohibits certain clauses such as 'pay-if-paid' provisions in most construction service contracts.

Frequently Asked Questions (FAQ)

  • Q: Is a written construction service contract legally required in Ohio?

    A: While not always required, a written contract is highly recommended to protect both parties and comply with Ohio regulations.

  • Q: What disclosures must be included in an Ohio construction service contract?

    A: Contracts must include the supplier's information, detailed scope of work, total cost, and any required consumer protections and notices.

  • Q: Can contractors use standard contracts from other states in Ohio?

    A: It’s best to use contracts tailored to Ohio law to ensure compliance with state-specific requirements and avoid legal issues.

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Ohio Construction Service Contract

Contract Reference Number: [Reference Number]

Signing Date: [Date]

This Ohio Construction Service Contract (the "Agreement") is made and entered into as of the [Date] by and between:

  • Contractor: [Contractor's Full Legal Name], a [State of Incorporation/Organization, e.g., Ohio Corporation] with a business address at [Contractor's Business Address], phone number [Contractor's Phone Number], and Ohio Construction Industry Licensing Board (OCILB) License Number [Contractor's OCILB License Number].
  • Client/Property Owner: [Client's Full Legal Name], residing at [Client's Business Address], and phone number [Client's Phone Number].

1. Project Description and Location

  • The project (the "Project") consists of [Brief Description of Project, e.g., remodeling the kitchen, constructing a new garage].
  • The Project site is located at [Project Street Address], [City], Ohio, [Zip Code], parcel number [Parcel Number], and is legally described in Exhibit A attached hereto. (Attach legal property descriptions)

2. Scope of Work

  • The Contractor shall perform the following work (the "Work") in accordance with the attached Exhibits:
    • Exhibit B: Architectural Plans and Specifications
    • Exhibit C: Engineering Drawings (if applicable)
    • Exhibit D: List of Municipal Ordinances.
  • This Work includes, but is not limited to:
    • [Phase 1: Description of Work]
    • [Phase 2: Description of Work]
    • [Phase 3: Description of Work]
  • Materials:
    • The Contractor shall use the following materials: [List of Materials, including Brand, Grade, and Quantity]
  • Labor:
    • The Contractor shall provide all necessary labor to complete the Work, including any specialized trade subcontractors or third-party service providers listed in Exhibit E, with OCILB Registration Verifications where necessary.

3. Project Schedule

  • The Project shall commence on [Start Date] and be substantially completed by [Completion Date], subject to delays as outlined herein.
  • Daily working hours shall be from [Start Time] to [End Time], Monday through Friday, unless otherwise agreed upon in writing.
  • Milestones:
    • [Milestone 1: Description of Milestone]: [Date]
    • [Milestone 2: Description of Milestone]: [Date]
    • [Milestone 3: Description of Milestone]: [Date]
  • Delays:
    • The Contractor shall not be liable for delays caused by weather, force majeure, or other events beyond its reasonable control.

4. Pre-Construction Requirements

  • Permitting:
    • The Contractor is responsible for obtaining all necessary permits as required by Ohio Revised Code 3781/3791 and the [City/County] building department.
  • Inspections:
    • The Contractor is responsible for scheduling all required inspections.
  • Site Safety:
    • The Contractor is responsible for maintaining a safe work site in accordance with all applicable regulations.
  • Client Responsibilities:
    • The Client shall provide the Contractor with access to the Project site and ensure that utilities are available as needed.

5. Contract Price and Payment

  • Total Contract Price: The total contract price for the Work is [Dollar Amount].
  • Payment Schedule:
    • Deposit: [Dollar Amount] due upon signing of this Agreement.
    • Progress Payments:
      • [Milestone 1]: [Dollar Amount]
      • [Milestone 2]: [Dollar Amount]
      • [Milestone 3]: [Dollar Amount]
    • Final Payment: [Dollar Amount] due upon substantial completion of the Work and final inspection.
  • Retainage: Retainage shall not exceed the limits set by Ohio Law.
  • Invoicing: The Contractor shall submit invoices to the Client according to the payment schedule.
  • Lien Waivers: The Contractor shall provide the Client with lien waivers upon receipt of each payment.
  • Rescission: For residential projects, the Client has the right to rescind this contract within three (3) business days of signing, as per Ohio's Home Solicitation Sales Act.

6. Change Orders

  • All changes to the Work must be documented in a written change order signed by both parties.
  • Pricing Method:
    • Option A: Fixed Price: The price for the change order shall be a fixed price agreed upon by both parties.
    • Option B: Cost-Plus: The price for the change order shall be the Contractor's actual costs plus a [Percentage]% markup.
    • Option C: Time and Materials: The price for the change order shall be based on the Contractor's hourly rates and the cost of materials.

7. Compliance with Laws

  • The Contractor shall comply with all applicable federal, state, and local laws, including Ohio prevailing wage laws (if applicable), and all applicable state tax and insurance withholdings.

8. Insurance and Licensing

  • The Contractor shall maintain workers' compensation and liability insurance in the amounts of [Dollar Amount] and [Dollar Amount], respectively. The Client shall be named as an additional insured if required.
  • The Contractor shall comply with all OCILB license renewal and professional continuing education requirements throughout the Project term.

9. Builder's Risk and Bonding

  • The Contractor shall maintain builder's risk insurance in the amount of [Dollar Amount].
  • Bonding and performance/security deposits shall be provided as required by Ohio statutory requirements, per project size.

10. Environmental Protection

  • The Contractor shall comply with all applicable environmental protection statutes, including asbestos and hazardous material handling consistent with Ohio EPA rules, stormwater permitting, and site cleanup standards.

11. Warranty

  • The Contractor warrants that the Work will be performed in a workmanlike manner and free from defects for a period of [Number] year(s) from the date of substantial completion.
  • This warranty covers labor and materials.
  • Manufacturer warranties shall be passed through to the Client.
  • Warranty claims must be submitted in writing to the Contractor within [Number] days of discovery of the defect. Minimum statutory warranty periods apply for residential construction (Ohio Revised Code 1345.01 and related home construction standards).

12. Dispute Resolution

  • Negotiation: The parties shall first attempt to resolve any disputes through good faith negotiation.
  • Mediation/Arbitration: If negotiation fails, the parties shall submit the dispute to mediation or arbitration through an Ohio-based ADR provider.
  • Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio. Venue for any legal action shall be in the county where the property is located.

13. Termination

  • Termination Rights: Either party may terminate this Agreement for breach, failure to pay, or insolvency, with [Number] days' written notice.
  • Payment for Completed Work: Upon termination, the Client shall pay the Contractor for all Work completed to date.

14. Liability and Indemnification

  • The Contractor shall be liable for damages resulting from its negligence.
  • The Contractor shall indemnify and hold harmless the Client from any claims arising from the Contractor's Work.

15. Mechanics' Lien Rights

  • The Contractor has mechanics' lien rights as provided by Ohio law.
  • Preliminary Notice: The Contractor shall provide a preliminary notice as required by Ohio law.

16. Lead Paint Disclosure

  • For residential projects, a lead paint disclosure is attached as Exhibit F (if applicable).

17. Record Retention and Audit Rights

  • The Contractor shall maintain accurate records of the Work.
  • The Client shall have the right to audit the Contractor's records.

18. Subcontractors

  • The Contractor shall not assign this Agreement or subcontract the Work without the Client's written consent.

19. Cost Escalation

  • Cost escalation or price adjustment terms for materials, labor, or other direct costs due to changes in law, tariffs, or force majeure events specific to Ohio's regulatory environment are outlined in Exhibit G.

20. Attachments

  • The following exhibits are attached to and made a part of this Agreement:
    • Exhibit A: Legal Description of Property
    • Exhibit B: Architectural Plans and Specifications
    • Exhibit C: Engineering Drawings (if applicable)
    • Exhibit D: List of Municipal Ordinances.
    • Exhibit E: List of Subcontractors and OCILB Registration Verifications
    • Exhibit F: Lead Paint Disclosure (if applicable)
    • Exhibit G: Cost Escalation Addendum
    • Exhibit H: Bid Documents and Municipal Permitting Checklists

21. Disclosures

  • The Contractor is a registered home improvement contractor in Ohio (if applicable). Registration number: [Registration Number]

22. Signatures

____________________________

[Contractor's Full Legal Name]

[Contractor's Title]

____________________________

[Client's Full Legal Name]

[Client's Title]

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