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Penalties for using an illegal construction contract in Ohio:
- Failure to provide both oral and written notice of the right to cancel under Ohio Revised Code Annotated §1345.22 gives an owner the right to cancel at any time, even after work has started, and is considered a deceptive act or practice under Ohio’s Consumer Sales Protection Act (Ohio Revised Code §1345.01 to 1345.13). Remedies for violation of Ohio's CSPA include the right to collect three times any damages suffered plus attorney fees.
- Ohio Revised Code Annotated §4113.66 (D) (1) voids any contract provision waiving rights granted under the Ohio's Prompt Payment Act.
- Ohio Revised Code Annotated §4113.66 (D)(2) prohibits any contract provision which would extend a payment deadline or set a lower rate of interest than provided by Ohio's Prompt Payment Act.
- Any attempt to indemnify someone for their own negligence is void under Ohio Revised Code Annotated §2305.31
- Failure to include the disclosure notices required by Cincinnati Municipal Code §891-1 to §891-99 is a misdemeanor.
- Ohio Revised Code Annotated §4113.62(C)(1) voids any clause in a construction contract which would prohibit contractor claims for delay.
- Ohio Revised Code Annotated §4113.62(D)(1) voids any clause in a construction contract which attempts to apply the law of another state.
- Ohio Revised Code Annotated §4113.62(D)(2) voids any clause in a construction contract which requires that disputes be settled in another state.
- Failure to make federal truth in lending disclosures requires restitution of the overcharge and makes the creditor liable for the debtor's attorney fees.
- Failure to include the disclosures required by 12 Code of Federal Regulations §226.15 extends the right of rescission to three years (rather than three days).
- Omitting insulation disclosures required by 16 Code of Federal Regulation §460 can result in an $11,000 fine.
The contracts linked below will help Ohio contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Ohio and federal court decisions.
The contracts linked below comply with the following Ohio and federal laws:
- Award of attorney fees -- Ohio Revised Code Annotated §4113.61 (B)
- Choice of law -- Ohio Revised Code Annotated §4113.62(D)(1)
- Choice of venue -- Ohio, Ohio Revised Code Annotated §4113.62(D)(2)
- Cincinnati Home Improvement Ordinance -- Cincinnati Municipal Code §891-1 to §891-99
- Excavation -- Ohio Revised Code Annotated §3781.28
- Indemnity -- Ohio Revised Code Annotated §2305.31
- Insulation disclosure -- 16 Code of Federal Regulation §460
- Interest on slow payments -- Ohio Revised Statutes §5703.47
- Mechanics lien rights -- Ohio Revised Code Annotated §4113.62(E)
- No claims for delay contract -- Ohio Revised Code Annotated §4113.62(C)(1)
- Ohio Consumer Protection Act -- Ohio Revised Code §1345.01 to §1345.13
- Ohio Prompt Payment Act -- Ohio Revised Code Annotated §4113.61
- Ohio Right to Repair Act -- Ohio Revised Code Annotated §1312.01 to §1312.08
- Right of rescission -- 12 Code of Federal Regulations §226.15
- Right to cancel the contract -- Ohio Revised Code Annotated, §1345.21 to §1345.28
- Statute of limitations -- Ohio Revised Code Annotated §2305.06
- Statute of repose -- Ohio Revised Code Annotated §2305.131
- Truth in lending -- 15 United States Code §1638
Return to Penalties for Illegal Contracts in Ohio.
The contracts linked below conform with current Ohio and federal court decisions.
The contracts linked below comply with the following Ohio and federal court decisions:
- Award of attorney fees -- Kott Enterprises v. Brady, 2004 Ohio 7160, 2004
- Claims for delay damages -- John P. Novatny Electric Co. v. State, 46 Ohio App.2d 255, 1975
- Consequential damages -- Corporex Development & Construction Management v. Shook, Inc., 106 Ohio St. 3d 412, 2005
- Constructive change orders -- Conti Corporation. v. Ohio Dept. of Admin. Services, 1992 Ohio Misc. LEXIS 77, 1992
- Contractor claims for delay -- Melka Marine Inc.v United States, 187 F.3d 1370, 1999
- Defect in the plans -- Dugan & Meyers Construction Co. v. Ohio Dept. of Admin. Services, 113 Ohio St. 3d 226, 2007
- Excusable delay -- Sherman R. Smoot Co. v. State, 136 Ohio App. 3d 166, 2000
- Figuring the cost of delay -- Complete General Construction Co. v. Ohio DOT, 94 Ohio St. 3d 54, 2002
- Implied warranty -- Bailey PVS Oxide L.L.C. v. Plas-Tank Industries, 2005 U.S. Dist. LEXIS 10884, 2005
- Implied warranty -- Kishmarton v. William Bailey Construction, Inc., 93 Ohio St. 3d 226, 2001
- Liability of contractor for safety -- Cafferkey v. Turner Construction Co., 21 Ohio St. 3d 110, 1986
- Liability of contractor for safety -- Wellman v. East Ohio Gas, Co., 160 Ohio St. 103, 1953
- Liability of owner for safety -- Hirschbach v. Cincinnati Gas & Electric Co., 6 Ohio St.3d 206, 1983
- Limits to liability -- Orlett v. Suburban Propane, 54 Ohio App. 3d 127, 1989
- Liquidated damages -- Jones v. Stevens, 112 Ohio St. 43, 1925
- No-lien contract -- Gimbert v. Madden, 3 Ohio Dec. 236, 1895
- Pay only when paid -- Chapman Excavating Co. v. Fortney & Weygandt, Inc., 2004 Ohio 3867, 2004
- Payment for extra work -- Valentine Concrete, Inc. v. Ohio Dept. of Admin. Services, 62 Ohio Misc. 2d 591, 1991
- Representations of owner -- R.J. Wildner Contracting Co. v. Ohio Turnpike Commission, 913 F. Supp. 1031, 1996
- Responsibility for safety -- Dramble v. Marc W. Lawrence Building Corp., Ohio 4752, 2002
- Right to cancel the contract -- Gross v. Bildex, Inc., 68 Ohio Misc. 2d 65, 1994
- Statute of limitations -- Colvin v. Globe American Casualty Co., 69 Ohio St. 2d 293, 1982
- Waiver of lien rights -- Power & Pollution Services, Inc. v. Suburban Power Piping Corp, 74 Ohio App. 3d 89, 1991
- Warranty -- Fullenkamp v. Homan, Inc., 2006 Ohio 4191, 2006
- Warranty (expert testimony) -- Floyd v. United Home Improvement Center 119 Ohio App. 3d 716, 1997
Return to Penalties for Illegal Contracts in Ohio.
Return to construction contract laws in Ohio.
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