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Holy Toledo! Claims Waived Under Article 8

In a February 2, 2016 decision, the Tenth District Court of Appeals in Franklin County affirmed the Court of Claims and upheld the decision to deny an electrical contractor’s claims against the University of Toledo because they were not timely asserted.

This ruling sends another important message to contractors that you must provide both timely notice and substantiation of your claims or they will be waived.

Article 8 of the State of Ohio General Conditions sets forth the requirements for submitting and substantiating a claim:

  1. claims accrue on the date of the occurrence of the event giving rise to the claim;
  2. within 10 days after the claim accrues, the contractor must provide written notice to the contracting authority and architect/engineer;
  3. within 30 days after initiating a claim the contractor must provide 4 copies of supporting documentation to substantiate the claim;
  4. within 30 days after initiating the claim the contractor must certify the claim by providing a notarized statement verifying the accuracy, completeness, fairness and reasonableness of the claim and claim amount; and
  5. failure to timely comply with requirements 2, 3 or 4 above will constitute an “irrevocable waiver” of any related claim.

Despite the contractor’s arguments of substantial compliance, owner-caused delays, contractor inability to calculate the precise amount of its damages and futility of administrative remedies, the Court of Claims and Court of Appeals strictly interpreted the contractual notice provisions and held that the electrical contractor had irrevocably waived its claim as a matter of law. Relief in the form of unjust enrichment was also denied. Holy Toledo! That hurts Batman! POW!

Lessons learned:

  1. understand and follow dispute resolution requirement in your construction contract;
  2. obtain assistance from legal counsel, risk management or a claims consultant to prepare and deliver a timely, properly documented and certified claim;
  3. failure to strictly comply with the contract requirements can be costly and painful; and
  4. be proactive, not reactive.

Should you wish to consult with the author of this article, please feel free to contact Attorney Robert A. Hager at (330) 253-4925.

David Scott & Amanda Waesch Promoted to Vice President Roles as Part of Continued Succession Planning

Brennan, Manna and Diamond (BMD), an entrepreneurial business law firm with six offices in Ohio and Florida, has promoted Columbus Office Managing Partner David Scott and Executive Committee Member Amanda Waesch to the position of Vice President.

'Culture, Culture, Culture’: The Essence of Printing Industry M&A Deals

BMD/Signet's Tony Manna interviewed by Printing Impressions

Signet’s Anthony Manna: U.S. Deal Activity Remains Steady As China Responds To Coronavirus

“When SARS came around (in February 2003), China had about 4 percent of the global supply chain,” says Manna, founder, principal and chairman at the global private investment firm. “Now they have 16 percent, and you see this massive stimulus package being put in place to combat the coronavirus problem. China has already announced that they’re going to have more stimulus packages.”

Brennan, Manna & Diamond opens Stark office

As published in the Canton Repository, Tuesday, February 18, 2020 Akron-based law firm wants to serve existing and future Stark County customers. Summit County-based law firm Brennan Manna & Diamond has opened an office in Jackson Township.

Jeffrey C. Miller discusses "Guns and Drugs in the Workplace" at Legal Education event Feb. 20, 2020

On Thursday, February 20, 2020 at the Builder's Exchange Training Center in North Canton, Attorney Jeff Miller will be discussing guns and drugs in the workplace. Both are legal in Ohio, but what about the workplace? Jeff will discuss concealed carry and medical marijuana in the workplace, and employer options for addressing these emerging issues. In today's tight labor market, the correct policies and procedures on guns and drugs are crucial.