Does Ky Consumer Protection Apply To Residential Repairs

The attorneys at Myers Police force understand how stressful and risky hiring a contractor can be. After handling hundreds of consumer disputes confronting dwelling house builders, full general contractors, restoration companies, HVAC contractors, plumbers, electricians, roofers, insulation contractors, concrete contractors, and material suppliers, we have seen a lot. Sometimes it feels like we've "seen it all," just Dan Myers is still surprised at the actions some contractors will take, and the lengths that they will go.

You have to be careful about who you lot hire, how y'all hire them, how you pay them, who inspects the work, and what you take the contractors do. If you lot don't read everything critically, yous tin can finish up dealing with some very serious bug–your home could exist foreclosed on because of a faulty mechanic's lien because of projection overcharges that you never approved, and yous may not exist able to have your day in court considering you agreed to a very expensive arbitration clause. If you lot end up in a situation where you demand to file a lawsuit against your contractor, you demand to make sure yous take the tools, and have given your attorney the opportunity, to help you.

On this page, you volition find important information about the laws that could utilize to home construction and home repair situations, and also some helpful data and pointers on researching, hiring, and working with a contractor. Nosotros also share with you lot reddish flags and warnings about certain hidden contract terms and problems many of our clients accept run into. You don't want to skip over this data.

Everyone Should Know These Laws

Homeowners have very powerful and very important rights and remedies nether Ohio's many different consumer protection laws. These laws are meant to protect homeowners from unfair, deceptive, unconscionable, fraudulent, and loftier-pressure practices used by many contractors. The trouble is most homeowners don't know almost these rights, and nigh contractors don't follow the police or tell consumers almost their rights like they are supposed to. These are some of the laws that you need to know about. Some of these laws let a homeowner to cancel a contract and get a full refund, while others allow the homeowner to collect damages. They can exist mutually exclusive, pregnant that once you choose to get ane way, you cannot change your management or endeavor to use the other laws. That is why you must talk to an attorney before making a determination or saying the incorrect thing to your contractor.

CONSUMER SALES PRACTICES ACT – CSPA – R.C. 1345.01 ET SEQ.

The Ohio Consumer Sales Practices Deed, or CSPA for short, is the main consumer protection law in the Land of Ohio. Because of the mode this law is written, new consumer protections and rights are added almost every yr, if not every month. This law applies to all home remodeling, repair, or improvement transactions between a homeowner and a contractor as long every bit the contract price was less than $25,000, and may fifty-fifty utilise when the price is over $25,000 in some situations. In order to know if this law applies to your $25,000+ project, you need to talk with an experienced consumer rights chaser. The police force is still in flux in this pricing "grayness area."

The CSPA appears very straightforward, at least at first glance. It makes it illegal for a dwelling house improvement contractor or builder to deed in an unfair, deceptive, or unconscionable manner with its customers. In certain situations, it allows homeowners to rescind, or undo, a transaction before it goes too far. In most situations, it allows consumers to sue for triple their actual out-of-pocket economic loss and $200 per violation of the law even when no cost is suffered past the homeowner. Consumers may recover up to $5,000 in non-economical damages for stress or embarrassment or harassment, as well as their chaser fees.

The CSPA is special in that it gives another tool and shield to homeowners. The law allows homeowners to act as if they are private attorneys full general, and information technology gives them many of the same powers as Ohio'due south Attorney General. That means homeowners can, in the right cases, become a court to publicly declare that a visitor has committed unfair, deceptive, and unconscionable acts, and also result an injunction confronting the company. The injunction could be as uncomplicated as requiring the company to show that it has changed its practices to comply with the law, or to remove certain provisions from its contract. In some cases, including some cases handled past Myers Law, the courts can order that a visitor be shut downwards forever, that it cannot act as a residential contractor anymore, and that the company's owners tin never again own or command a company that works in the same industry. This is sometimes chosen the "corporate death penalty."

The CSPA is difficult to navigate, not because information technology is hard to read, merely because it is difficult to truly know what your rights are. The law allows the Ohio Attorney General to write specific regulations that spell out what is unfair, deceptive, or unconscionable, and what a contractor must or must non do. These can be found in the Ohio Administrative Code, and tin can change every few years. Merely most of the rules that companies accept to follow, and most of the rights consumers take, tin can only be found by searching for specific decisions in the Attorney General's Online Public Inspection File (OPIF). OPIF is a database of Ohio court cases where courts have declared that specific acts of a company were illegal nether the CSPA. One time a court declares a new act or practice to be illegal, information technology is added to the OPIF; and one time it is added to the database, it becomes illegal for whatsoever and all companies to practise the same affair in a similar situation.

When the CSPA applies, there are some specific things that contractors need to practice to comply with the CSPA. In that location are thousands of examples and protections for homeowners, but some notable examples include:

A contractor must give you lot a written receipt when you brand any payment to them. For the first payment yous make, i.e. your eolith, they must requite you lot a receipt that specifically says whether the deposit is refundable or non-refundable. If they don't give you the receipt, they aren't allowed to accept or keep the payment.
A contractor must be registered with the local building department, licensed by the state if a state license is required (plumbers, HVAC contractors, and electricians), and they must obtain all permits required by law for the work.
A contractor must either requite you a written approximate for the piece of work ahead of time (which must be bounden on them for five days), or give you a written notice that yous have the right to receive a written or oral estimate if you cull. If the contractor gives y'all the notice, information technology should allows you to initial next to which kind of judge you want.
If the costs of the construction work are going to be x% higher than the original estimated cost due to additional and unforeseen repairs needed, the contractor must offset get written or oral blessing from a homeowner before incurring those costs.
Once the contractor receives the initial deposit, piece of work must be completed, or at least showtime, within viii weeks. If information technology doesn't, the contractor must inform the homeowner of the delay and offer to give the deposit back during the wait.
The contractor's work must be practiced and workmanlike (not shoddy), and they must right any deficient work.
The contractor must be honest about everything, including the following:
The contractor cannot file a mechanic's lien that contains any false statements, or a lien that fails to comply with the Ohio mechanic's lien law.
The contractor must give the homeowner a written agreement, and also an estimated completion appointment in writing.
The contractor must disclose the labor costs for the homeowner separate from the textile costs charged to the homeowner.
The contractor cannot knowingly breach its contract or refuse to honor its previous warranties.
Many other rights.

Once a lawsuit is filed, contractors can use a "cure offering" to endeavor and settle the example. In reality, the "cure offer" is a poison-pill to hurt the consumer's ability to recover full damages under the law. If information technology is accepted, your lawsuit is settled. If it is rejected, and then information technology can limit your recovery later if you don't prove economic loss greater than what was offered. Therefore, it is critical to speak with an attorney before any lawsuit is filed. Many clients tried to file their claims in minor claims court before contacting an chaser. That is a risky motility, because the damages probably exceed the limit of minor claims court, and because a contractor with an attorney will apply a cure offering to harm the homeowner who may not know better. Before trying to negotiate with your contractor, speak to an attorney and then you know what to say or what not to say to the contractor.

The CSPA is a very powerful law, merely homeowners only have two years from the date the violation occurred (non the date they found out about it or discovered the problem) to sue for damages (unless the contractor sues starting time). If the client wants to rescind or undo the transaction, that must happen within a reasonable time after the violation was discovered and earlier any substantial change has occurred. Because of these time constraints, if you believe your contractor violated your rights, you must talk to an chaser immediately, earlier information technology'due south too late.

THE Abode CONSTRUCTION SERVICE SUPPLIERS ACT – HCSSA – R.C. 4722.01 ET SEQ.

Since 2022, many larger structure projects–like brand new homes, additions, and detached garages–were removed from the CSPA, and fall nether the HCSSA. The HCSSA applies only to these larger projects which involve structure of a new structure, where the contract price exceeds $25,000, and where the contractor has insurance with at to the lowest degree $250,000 in limits (which well-nigh practise).

The remedies under this law are less than those that were available under the CSPA to these homeowners earlier 2022. Homeowners tin recover their actual economic amercement, plus up to $five,000 for the stress or embarrassment or harassment, but cannot collect triple damages, and cannot collect whatsoever statutory damages. It is also possible to recover attorney fees, as well equally declaration that an act violates the HCSSA and court ordered injunctions, which were as well available under the CSPA.

The HCSSA carries over a few of the protections of the CSPA, but leaves out most of the important protections. More troubling, it does almost nothing to protect homeowners when they concur to a cost plus contract with their builders. A cost plus contract ways that the builder will charge the homeowner all costs of the construction (bodily labor and material costs), plus an additional corporeality or percentage. In these cost plus arrangements, the costs of a projection tin can increase exponentially and without warning–there is no cap or limit to the cost. A normal contract is sometimes called a guaranteed maximum price because the toll to the customer is capped or limited.

The HCSSA requires contractors to perform work in accord with the Home Builder Association's Minimum Quantifiable Standards. These standards are written by the Ohio Abode Builder Association, and include requirements for the grading of yards, limits on floor height changes, and establishes other tolerance limits for projects. Information technology too incorporates the Residential Lawmaking of Ohio, so if piece of work isn't up to code, it automatically isn't proficient or workmanlike–it'due south shoddy if it violates code.

The constabulary also places a limit on the amount a contractor can take as a downwardly payment or deposit before work starts. Unless at that place are custom or specialty orders for materials, the contractor cannot ask for more than x% upfront before work starts. There are very few cases that have been decided under this police because it is relatively new.

THE HOME SOLICITATION SALES Human activity – HSSA – R.C. 1345.21 ET SEQ.

Many people accept heard that they have a 3-twenty-four hours right to cancel certain agreements, but virtually people don't empathize what that actually means. Often, consumers are wrong about when they do or practice not accept that right. In add-on to some federal laws, the Ohio HSSA gives consumers a three-day right to cancel certain contracts.

No matter how big the construction project is, the HSSA will often apply to habitation repair, dwelling improvement, and dwelling house remodeling projects. It applies to many contracts for goods or services, including structure services, so long equally the seller came to the dwelling house of a customer to make part of their sales pitch, and the understanding is entered into somewhere other than the seller's business concern place. It commonly applies to dwelling repair agreements considering nigh contractors visit homeowners in their domicile, and most homeowners sign their contracts while at home.

Information technology is imperative to talk to a lawyer before trying to do cancellation rights under this police force. According to some courts in Ohio, once a cancellation letter is sent to a contractor, the homeowner has chosen to cancel the contract and can no longer get additional damages from their contractor. It does not ever brand sense to cancel; sometimes it makes more than sense to sue nether one of the other consumer protection laws.

For example, if a homeowner paid $5,000 to a contractor on a shoddy $15,000 roof replacement, and has to pay another contractor $20,000 to do information technology the right manner, information technology may make more sense to sue for damages, unless a lien or other problems take come upwardly. Talking to an attorney to get specific advice as to what road to have could be the deviation between you owing money and you existence entitled to tens of thousands of dollars.

If you are past the get-go 3 days subsequently you lot signed the contract, don't worry–you might still have fourth dimension to abolish. Contractors take to include in a written contract a notice, near your signature, that says "Y'all, the buyer, may abolish this transaction at any time prior to midnight of the tertiary business concern mean solar day after the date of this transaction. See the attached notice of cancellation for an explanation of this right." If that is missing, your right to abolish never expires, at least not until the contractor corrects the missing information.

The contractor also has to adhere to your contract 2 additional pages titled "Notice of Cancellation" that explain your cancellation rights in the language used by the HSSA. If they are missing this information, or they don't fill in the blanks for the cancellation engagement, then your right to cancel also does not expire until they correct that missing data.

Three days can turn into three years or more if the contractor does not apply the right forms or give the right warnings in their forms. If you abolish your contract, the contractor has to refund all coin you lot paid inside ten business days, and remove all liens that were filed. Yous as well accept to return any materials delivered to your home as long every bit they were not previously installed by the contractor. Annihilation installed stays installed even afterward the understanding is cancelled.

OHIO MECHANIC'Southward LIEN Police – R.C. 1311.01 ET SEQ.

If you take ever read through the Ohio Constitution (Alarm: practice not drive or operate heavy mechanism after), you will notice it includes a lot of uncommon "rights." A lot of these you will non discover in the U.Due south. Constitution. One such right in Ohio is the structure contractor's right to file a mechanic's lien against someone's belongings.

If y'all take a dispute with your contractor over the work performed or the amount of payment owed, it is probable that a contractor volition file a lien against your holding to "secure" the amount claimed past the contractor. These liens function like a mortgage. They can likewise be unsafe for a homeowner–-if you take a mortgage, the filing of a lien likely puts you in default; if yous are trying to go financing, you may exist denied equally a risky investment; if y'all lease the property, you may be evicted for violating your charter. Worse, a contractor can file a foreclosure action against you lot to forcefulness your home to exist sold at a sheriff'southward auction to satisfy the lien. Even if no action is taken by the contractor, this lien stays on your belongings for up to six years after it was filed, and tin prevent or complicate sales of the property, besides.

You may non even know that a lien has been filed on your property. Yous should know, because the contractor is required to serve a copy of the lien on you soon afterward it is filed. But some contractors, and their attorneys, fail to follow the law.

These liens are a powerful weapon for a contractor to persuade homeowners to make payments, even when those payments are in dispute–then long every bit the lien was filed as Ohio police requires. But what Ohio law giveth, Ohio police force too taketh away. The constabulary also provides homeowners with many unlike tools to remove the lien or punish the contractor.

As always, before taking action, yous should kickoff consult with an chaser about your specific options and rights–some of these may be better than others in your state of affairs, and some may non be available to you.

In that location are at Least Seven (and Really more) Steps to Follow When Looking for a Dwelling Builder or Contractor to Work on Your Dwelling house

Clients and the public frequently ask "what should I have washed differently," or "what should I do to make certain I'm protected from a bad contractor." The truth is at that place is no perfect, sure-fire manner to ensure your contractor will be perfect. There is no guarantee. There is nearly never a perfect projection, either. However, there are some steps you tin can take so that you tin can detect comfort in the fact that you did everything you could do.

Pace ONE: Make A List OF POSSIBLE CONTRACTORS

Before y'all even encounter with a architect or contractor, you should brand a list of possible companies y'all could hire. Instead of looking online or in the phone book starting time, many people suggest starting by asking the people you lot trust. Your family, friends, and neighbors probably take recommendations for contractors they take used and liked. If they don't, yous can cheque with other companies you know and trust that work with contractors. But don't terminate there: yous can check with local building supply stores to run into if they know good contractors that pay their bills. Add together these contractors to a listing.

Footstep Ii: RESEARCH YOUR CONTRACTOR Listing

Once you accept made an initial list, showtime looking these companies upwardly. Do they accept websites? Do they file a lot of mechanic'south liens (check the county records at the Recorder or Fiscal Officeholder websites)? Do they go sued a lot or sue their customers a lot (check the county court records for the courts around you)? How are their BBB, Angie's List, Yelp, Google, Facebook, or other reviews? Practice they have complaints? Do the complaints sound legitimate? Did you see anything that immediately makes you lot reconsider even thinking of them? Practise they have a lot of complaints against them in the Chaser General'south office?

Nigh importantly: are they a licensed or registered contractor? A lot of this information tin exist found online. You should also bank check with your local building department, or if the contractor is a plumber, electrician, HVAC, mechanical, or other specialty trade, check for their licensed with the Ohio Construction Industry Licensing Lath (or your state licensing board, if yous alive outside of Ohio). Need to know their state license number.

Contact your local building department to see if they can verify the data (call up: they will only be able to do and so if they are registered with the City at that time). Any plumber or electrician should be working under a state license, and should exist able to tell you lot their number. Full general contractors, carpenters, and roofers exercise not currently have state-wide licensing in Ohio, but all contractors should be registered with your local building section. Retrieve: contractors and builders can register with the building department after you talk with them, besides.

Use this information to make a shorter list.

STEP THREE: TALK TO THE CONTRACTOR

Once you've done your research, consider calling the contractor to ask them questions. Ask them about the problems of import to you lot, just consider including:

Do they do the type of project y'all want to have done?
Have they done projects as big (or minor) as yours?
Are they willing to provide references from the business organisation they buy from (material suppliers)?
Volition they show yous examples of previous work and let y'all talk to previous customers?
Exercise they have time to become your project washed when you expect it to be done?
Practise they use subcontractors or employees? How long take they worked with them?
Practise they offer a written warranty? (There are often automatic warranties in Ohio under the law, merely sometimes written warranties are provided, as well.)
Are they insured, do they have workers compensation coverage, and can they get a license and bond in your city?

There are many other questions to inquire, but this is a good start. From this, you have a better idea whether the company is available to do the work, if they are financially secure and responsible, if they are reliable, and if you similar the personality of the contractor. Fiscal stability is critical . We accept seen far too many clients left loftier and dry out (or low and wet with water-filled basements) because their contractor didn't have enough money to do the work, or used our clients' money to pay for other projects, like a Ponzi scheme. You should once more re-evaluate your list.

Stride FOUR: MEET THE FINALISTS

Later on the you make it at your short list, pick a few contractors to run across with, and ask them for an guess. You lot may detect some of the contractors arrive late, or not at all. Some may never go y'all a written estimate. Ask them more questions, like where they currently doing piece of work, and make it a point to drive past or visit that project to run into how it's moving along and looking. Make sure you are comfy with the contractor and feel similar they mind and take your concerns seriously. Depending on the size of your project, you will be working with them a lot, and communicating a lot of information to them. First impressions hateful a lot. If your "gut" tells you to avoid someone, listen to it.

Pace V: IGNORE THE LOW BID OR LOW ESTIMATE

This is then of import that it gets its own step, and not just a mention in Pace 4. Everyone wants a bargain, but often in construction the lowest gauge is depression for a apropos reason. We often meet clients who hired a low-bid contractor and after find out the contractor left out a lot of the work that needed to exist done, couldn't do the work (and therefore could not estimate information technology accurately), or wants more and more than coin to consummate the job. While the about expensive estimate may not be the all-time, in our experience, it is more than often true that you go what you pay for.

We have sued the loftier-bid contractors before for violations of Ohio law, bad piece of work, or misrepresentation, but it is more common that nosotros sue the low-bid contractors and builders. Please do yourself a favor and ignore the low-bid. Otherwise you might exist setting yourself upward for more than bug after.

If you are using a Cuyahoga County, or other government fiscal assistance plan, to finance the work or pay for some of the work, they may force you to use their contractor–which will probably be the lowest applicant. Think twice, and demand to have a say with the Canton or governmental program when they selection your contractor.

STEP SIX: DETERMINE THE Concluding SCOPE OF YOUR Projection

Now that y'all have a full general idea of proposed cost, and you lot have narrowed your contractors down to merely a couple that you trust, you need to make up one's mind what exactly you want them to do. Some contractors have relationships with architects or designers and tin can get the drawings, prints, plans, specifications, and telescopic written up for you. Others will desire yous to handle this on your own. Regardless of the route you have, brand sure you get the drawings and specifications in writing equally to everything you want done, all the style downward to the specific model or toll range for appliances or specialty items. If you desire a room painted a specific color, put it in writing. If yous want your floor boards screwed and glued instead of nailed, put it in writing. If y'all don't want builder-class windows…you lot get the motion-picture show.

This step may price y'all some money. Some contractors will provide design details for costless as part of their approximate, while others volition wait compensation for pre-construction services. If you lot are expected to pay for it, get that understanding in writing. In one case yous have the specific telescopic of the project, yous can actually compare apples to apples with bids and concluding estimates for your last ii or 3 contractors.

Step SEVEN: PUT YOUR Agreement IN WRITING

Never rent a contractor on a handshake or oral understanding. It's dangerous, it leaves a lot of room for miscommunication and misunderstanding, and information technology's mostly a bad idea. Many contractors are required by constabulary to put your contract and agreement in writing. You'll want to make sure the contract includes or "incorporates" the drawings and specifications that detail the full telescopic of the work. If your contractor fabricated any oral promises to you, including warranties, make sure they end up in writing in the contract. Things that you desire to make 100% sure are in your contract are:

the contract price;
incorporation of the telescopic of the work and materials;
payment terms and payment schedule (avoid price-plus or unlimited/unknown cost contracts);
requirements that the contractor give you lot lien releases from them and subcontractors at the exact aforementioned time you requite them payments;
estimated or initial completion appointment;
all oral promises or representations that were made to you before you sign the contract (and afterward);
a description of your cancellation rights;
a requirement that any changes to the scope or price demand to be agreed to in writing signed past you;
a argument that your contractor is responsible for all permits, licensing, and registration required by law;
proof of insurance;
a list of all subcontractors if any are going to be used.

Is this a complete list? No. But it's a groovy starting point, and if all of these terms are included, you lot can feel more comfy that your are dealing with a responsible contractor–or at least ane that you tin can actually hold responsible after. Make sure yous are given a re-create of the contract the verbal time that you sign it, along with all changes made to it. If they can't requite you a re-create in that location, take a motion-picture show with your prison cell phone of every page, including whatsoever changes you made to it.

There are likewise things you want to absolutely avert in your contract. If you encounter them, ask that they exist removed before you lot sign it, or cantankerous out the sections before yous sign information technology:

attorney fees if the contractor has to sue you to collect coin;
unreasonable interest rates;
arbitration clauses;
liquidated amercement (unless they are in your favor merely);
any waivers of warranties or rights or remedies;
any choice of court venue (i.e., location where lawsuit must be filed) which is far away from you;
anything that allows changes to be made or costs to be added without your prior written blessing.

If annihilation changes after you sign the contract, make sure all changes that y'all agree to are in writing, and signed by you, earlier any change is actually fabricated to the work or price. Need that all change orders exist in writing. Demand estimates for whatever increased or changed work exist in writing before you agree to the extra price. If promises are made to y'all for gratuitous or no-cost extra work, go that promise (and the fact it is free) in writing.

There are many other steps to follow before letting work start or earlier making last payment to your contractor, only these steps volition put you in as expert a position every bit any for moving forward.

Iii Things to Look for in Your Contract (and Consider Irresolute) Before yous Sign it

A contract is just a deal. You enter contracts every time you buy something, whether you buy a habitation, a car, construction services, or a lemon. If you piece of work for a business organization, y'all may end up making contracts without even realizing information technology through talking over the phone with people who buy or sell things from or to your business concern. Because we all frequently bargain with contracts, it's important to empathise some common and commonly misunderstood technical legal words that are associated with contract law. If you read the fine print in a lot of consumer contracts, chances are you'll come across at least one and mayhap all of these big three words.

Arbitration

Arbitration clauses are very common today. If you agree to "binding mediation" or "final arbitration" in your contract, then you are by and large agreeing to resolve legal problems that come without going to Court, seeing a judge, or having a jury trial. The mediation process involves you and the other party to your contract sitting in front of an arbitrator, a person who decides your example, who may or may not be a lawyer or trained in the law. The arbitrator could be some other business possessor. The process is quick and plush for consumers, with very few rights or protections you would normally notice in court.

Arbitration has some pros and cons. The adept aspects more often than not help businesses, the bad aspects generally hurt consumers. On the plus side, arbitration is faster and almost always cheaper than going to court, at least for the business. Only information technology is usually more expensive for a consumer. A construction arbitration under the rules of the American Arbitration Association could toll a consumer as much equally $6,000 to file, even though filing a lawsuit costs but $250 or $300. Arbitration limits some remedies the constabulary might otherwise give you lot. Yous cannot appeal to a court or some other arbitration console simply considering you exercise not like the decision, meaning the result is quick, but many times not painless. Arbitration likewise eliminates discovery that happens in courtroom cases, where each sides exchanges relevant documents in their possession, that could assistance brand or break your case.

As a consumer, you should always read the contract. If you see an arbitration clause, stop and enquire questions, see if they volition negotiate it away, or cross it out entirely before y'all sign it. Don't sign it and then ask about it—that may be too late.

DISCLAIMERS OF WARRANTIES

Many contracts for the purchase of property, such as cars, homes, and boats, include a term disclaiming all warranties. Sometimes y'all will meet this in ALL CAPS in the agreement. Otherwise you will see the words "equally-is" or something like. A disclaimer of warranty tries to eliminates protections y'all otherwise would have, similar that the work would be performed in a good and workmanlike manner, or that the products and materials will be fit for their intended apply. These warranties are usually not immune to be waived under Ohio law, but information technology won't stop a contractor from trying. This can really cause you problems in a contract.

Do not sign a document that says you are waiving your warranties, or no oral warranties or promises were made to you, unless you annotation on information technology the oral warranties that were made to you lot, and the seller agrees to include them. Otherwise, yous could run into a problem later.

LIQUIDATED DAMAGES

When someone fails to comply with a contract, that contract might include "liquidated damages" which state how much the party breaching the contract has to pay the other party. A liquidated damages clause is supposed to reasonably predict the corporeality of amercement that would occur. Information technology might say that, if you try to get out of a habitation comeback contract, you forfeit your down payment or agree to pay money to the contractor. Sometimes, these liquidated impairment clauses are penalties and are not enforceable and not valid nether Ohio police force. Other times, they are perfectly reasonable and enforceable.

Courts will commonly detect liquidated damages clauses fair and enforce them. Nonetheless, if the amount seems to be outrageous under the circumstances, such as a $1,000 liquidated damage for non paying your $450 payment on time, an attorney can argue that the court should not enforce the clause considering information technology was too 1-sided and really acts like a penalisation, which courts will non enforce. You should be in the lookout for these clauses in all types of contracts, like car financing agreements, construction contracts, rental agreements, and even employment contracts.

Before you enter into whatsoever contract, depending on the coin and risk involved, information technology's usually a smart idea to accept an attorney look things over. If you're already a party to a contract and the other side claims it is protected by an arbitration, disclaimer, or liquidated amercement clause, you should contact an attorney earlier it is too late.

Make Your Contractor Show You lot These Seven Things Before You Show Them Whatever Money

When you lot engage in a remodeling or repair projection, there are a lot of details to worry virtually, and a shortage of people able to help you notice what you need to know. Whether you are overwhelmed, shy, trusting, inexperienced, or simply the type of person that goes-with-the-flow, yous need to approach hiring a contractor, allowing work to outset, and paying your contractor,proactively.

There are at least vii things you need to force your contractor to show you earlier you allow them to do any work, and well before you pay any down-payment or deposit. If your contractor tin can't show you these seven things, y'all demand to show them the door (until they tin come up back with the proof).

FULLY SIGNED CONTRACT

If y'all've read our prior articles on steps to accept before hiring a contractor, you know your contractor should be using a written contract for your home repair or remodel projection. You and your contractor should sign that contract. But only signing a contract and giving it to your contractor isn't enough.

Nosotros've seen many situations where clients sign a contract, and are never given a copy, or are given a copy at the end of the project with alterations apparently made. In order to prevent misunderstandings about what is going to happen, what materials are going to be used, or when y'all are supposed to make payments in what amounts, make sure your contractor gives you a re-create of your contract before whatever piece of work begins or payment is made.

Don't settle for a blank version–-yous want a re-create of the signed version, signed by you and your contractor. In Ohio, when a home improvement or residential repair project costs less than $25,000.00, your contractor is required past law to provide you with a copy of the signed contract at the time it is signed.

THE Permit (WHEN REQUIRED)

Not every project requires a building permit from your metropolis or county edifice section. Most larger projects, and projects involving covering, electrical, plumbing, or structural work, unremarkably require permits. If your contractor tells you that no permit is needed, information technology's a good thought to call your building department to tell them the scope of the work and inquire them if one is required or not.

Never agree to pull the let in your own name. Your contractor is doing the work, so your contractor should be legally responsible. If you obtain the permit, you may exist criminally and civilly liable to right any deficient work instead of your contractor, and your failure to timely do so could put you in jail.

If your project requires a permit, or your contractor tells you they will get all necessary permits, ask for copies of the permits before you brand whatsoever substantial payments (more than the permit cost) and before piece of work begins. Permits should exist posted at the job site anyways, but if you don't see it posted, you need to ask about it. Many consumers have paid contractors many thousands or tens of thousands of dollars just to find out that no permit was ever pulled, carpenters were doing complicated plumbing and electrical piece of work (poorly), no work was ever inspected, and now they accept to pay someone else more money to fix the mess.

Request the let from your contractor and brand sure it is posted on site. Brand sure the contractor that obtained the permit is the same i that you hired (for edifice permits). That said, electrical, HVAC, and plumbing permits will ordinarily be obtained by (and other the proper name of) the subcontractor for that work, because they crave a special license.

RECEIPT FOR THE PAYMENT (ESPECIALLY A CASH PAYMENT)

If your contractor is asking y'all to make whatever payment, y'all must be given a receipt. This is particularly of import for cash payments (which are not the preferred method of safely paying a contractor). If y'all are going to hand over a check or cash, you need proof from your contractor that he or she received it.

We have sued contractors who claimed that they never received cash payments made past our clients. If there is no proof of the payment, information technology turns into the homeowner's word against the contractor'southward. This is a bad position to be in at trial. Need that the contractor give you adated, written receipt showing the amount you are paying, the previously payments, and the balance left to be paid on the project. Don't give them the payment until they have a receipt ready for y'all.

Approved DRAWINGS AND PLANS

When permits are required, contractors may have to submit drawings or plans for the edifice department, engineer, city/canton architect, or zoning board to approve. Often, this is the first step to getting a allow issued. These drawings, similar the permit, should exist at the job site at all times.

If you hired a contractor to build a new domicile addition, build a new dwelling, remodel a bathroom, finish a basement, or fix upward your kitchen, demand that the drawings or plans be produced to you earlier y'all allow anything to brainstorm. We've seen contractors false their permits, trying to fool the consumer into believing that a allow was obtained.

If your contractor is building a new addition or taking out some walls, etc., requesting the approved drawings or plans tin help y'all double-bank check that the allow is authentic. These drawings and plans, when approved, are frequently stamped by the city or county official in accuse of approving them.

PROOF OF INSURANCE

In order to brand sure your contractor is official, and can afford to compensate you if they harm your home during the project, yous demand to make sure they accept insurance. While insurance does non cover correcting bad piece of work, information technology can comprehend damage washed to your dwelling by your contractor. On far too many cases we have handled, contractors had signed up for insurance, only to go the insurance certificate needed to register with the building department, and and then fail to pay their premium, resulting in the insurance policy being cancelled.

You desire to make sure your contractor (one) can bear witness you proof of insurance, and (2) prove to you that premiums take been paid, especially if the policy is less than thirty days old. The Certificate of Insurance course will show the effective dates of the insurance. If the beginning date is less than 30 days or and then ago, it would be wise to enquire your contractor for proof or payment of the premium.

Cities are supposed to receive notice when a contractor'south insurance is cancelled, just not all insurance companies or agents provide that information, and not all cities really take note of changes.

CONTRACTOR REGISTRATION OR LICENSING

It'due south not enough that a contractor has a concern registered with the Ohio Secretary of State. You need to brand sure your builder or repair contractor is registered with the local building department, and if necessary, licensed with the country OCILB.

Only like insurance, it's important to make certain your contractor is registered or licensed to do the piece of work they claim to be able to practice. You lot should ask your contractor to show you their registration for your metropolis/canton. Some cities do not have building departments, and sometimes county edifice departments oversee registration for all communities in the county. Rarely, a city, county, or other area volition not crave contractors to be licensed or registered. If your contractor doesn't desire to show y'all their registration, or says "I don't need to be registered," phone call your local building department to check. If your building section requires contractors to register (that's the norm), so make certain they tin can show you lot their license or registration. If they are an electrical, plumbing, HVAC, or mechanical contractor, you can also inquire for their Ohio Construction Industry Licensing Board (OCILB) license number, and you tin can verify that they are legitimate online.

If the license or registration doesn't match your contractor, yous need to address that before the project starts. If your contractor is having someone else pull permits for them, that is a cherry-red flag. Who is actually responsible? Who are y'all actually hiring? Are they illegally working under someone else's license? Why? If they are registered with your city/county, and your city/county is an expanse that requires a bond, proof of the registration will also mean they likely take the legally required bail. Simply over again, not every urban center or county requires a bond.

ESTIMATED / EXPECTED COMPLETION Appointment

This is oft disregarded by consumers. Once you get a signed contract, you accept the permits, and yous have a competent, licensed contractor working for you lot, you lot expect that the project will brainstorm to move frontwards. But yous may find yourself waiting for months and months with broken promises about the start of the project, how long it will accept, and you may receive requests for more than money before the project starts.

Your contractor should be giving you, in writing, an estimated date past which they plan to have the project completed. If this isn't in your contract, you need it in some other certificate, provided to you and signed past the contractor afterwards your contract is signed. Better nonetheless, insist that the engagement be handwritten or printed on the contract as "Estimated Completion Date." Things modify, projects evolve, and mother nature gets in the way, merely y'all should know what the program is, and where in line you fall, and then that yous don't have to deal with being put on the back burner while your contractor works on larger, more than profitable projects.

This isn't whatever exhaustive list of things to ask for or steps to take, and it won't guarantee that you are 100% protected or rubber. It will, as a practical matter, protect you from a lot of different, and very common, problems that arise on home improvement projects.

You should contact our experienced consumer law attorney Dan Myers as before long as you know yous are having problems with your contractor.