Legal Question in Construction Law in Ohio

Re: What protection is needed against injury & damage claims?

Dear Facility Manager / Homeowner:

May I suggest the use of Performance Bonds and Payment Bonds?

Construction projects need not result in disappointment, emotion, conflict, claims and litigation. Effective, early risk control and legal management are essential in avoiding claims and litigation in all aspects of work - whether existing or new construction, additions, alterations, or residential remodeling.

Most frequently, it is the unwary residential homeowner who suffers the nightmares of inadequate documentation, verbal contracts, deposits given for work never begun or completed, work and services delayed, out-of-budget, of substandard, or improper workmanship and materials, and building code violations, all resulting in serious damage or monetary loss.

Claims avoidance should begin with planning and search for an experienced, reputable contractor, with references that have been carefully checked. A detailed contractor cost estimate, in writing, should also incorporate specific terms and provisions in a written contract, with drawings and specifications attached and referenced. These basic requisites set the standards and foundation for a firm understanding and good business relationship.

Homeowners must be especially wary of �CON-struction� schemes, including: 1. Door-to-door salespersons, with no local connections, or established businesses, offering work or services for �special� or below market prices. 2. Personal or telephone solicitations from a company that will have a representative call on you, but that lists only a telephone number or P.O. Box number as its �home office�. 3. Contractors who fail to provide requested references of recent, previous customers. 4. Contractors who demand large down payment for a job or who request you to make a check payable to cash, or an entity other than that of the contractor performing the work.

Owners have the legal right to insist on a reasonable time and opportunity to check contractor�s references and reputation before conferring, on an unknown, perhaps the largest single investment or expenditure in their lifetime!

Experienced construction legal counsel can assist in avoiding consumer traps and shabby contractors by utilizing written agreements, secured by performance and payment bonds, essential as the basics, even for residential construction projects, to provide results as the benefit-of-the-bargain, namely: on time, within budget, and of reasonable, good quality and workmanship. * * *

A memorandum isn't written to inform the receiver, but to protect the writer.

Dean Acheson, U.S.Statesman

Good luck. Sincerely, J.Norman Stark