The February 2006 ohioconstructionlaw.com Newsletter

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Economic Forecast, Supreme Court Decision On Sales Tax Obligations Begin Seventh Year

That’s right—we started publishing this newsletter in February 2000, so this, our 73rd issue, begins our seventh year. We thought it a good time to focus once more on the economy for the construction industry in Ohio. Our lead article, “What Does the Construction Economy Look Like in Ohio in 2006?” brings together much of the panel we had three years ago, with a couple of new additions to update that forecast. The four panelists, from different segments of the industry, basically agree that construction is a busy industry with several growth areas to look to for the immediate future. You will want to read their opinions and see how and where they match your own experiences.

For our second article, we turn to a guest author, Mark A. Engel, a Bricker & Eckler partner who focuses his practice on tax matters. On February 1, the Ohio Supreme Court issued Cousino Construction Company v. Wilkins, an opinion that has tax consequences for contractors. Mark explains what those are in “Ohio Supreme Court Clarifies Sales Tax Obligations of Contractors.”

Five cases merit our attention in this month’s “What the Courts Are Saying,” starting with a federal case from the Sixth Circuit brought by a subcontractor who claimed it was delayed and sought damages from its contractor’s payment bond. Read the summary to find out if the subcontractor succeeded. Then we turn to the Ohio Courts of Appeals and look first at the question of whether satisfying “industry standards” means fulfilling the contract. Our third case looks at a familiar issue: insurance coverage for settlement of a contract dispute. Arbitration issues take up our last two cases, one dealing with modification of the arbitration provision in a standard AIA contract, and the other with whether a wrongful death claim must be arbitrated.

Any contractor who has ever discovered problems in a set of drawings and specifications—and who hasn’t?—will want to read this month’s “Holman, Gillis & Shevelow on Construction Documents,” where Doug Shevelow looks at what the various standard contracts and one court decision have to say about the contractor’s obligations to report design errors. Must the contractor have the knowledge and skill of a design professional in order to bid accurately and safely?

We conclude this issue with two corners: OSHA Corner and ADR Corner. You’ll find our seminar listing in here, too, but not “What the Legislators Are Considering.” Why not? Well, last month, when we modified our delivery format (You noticed?), we switched to a link that will take you to summaries of all the important bills pending before the General Assembly and, if you want to follow another link, will take you directly to the bills themselves. So if that’s what you’re looking for, go to What the Legislators Are Considering.

Index to February 2006 ohioconstructionlaw.com Newsletter

Feature Articles

What Does the Construction Economy Look Like in Ohio in 2006?
Panelists Update Forecasts, Comments Made 3 Years Ago
In March 2003, we ran an article in which panelists spoke out on the economy and school construction. This article reassembles most of that panel, with a couple of additions, to look back at how accurate our predictions were then and look ahead to 2010 or thereabouts to estimate what lies ahead for the construction industry.

Ohio Supreme Court Clarifies Sales Tax Obligations of Contractors
Guest author Mark Engel discusses the ramifications of Cousino Construction Co. v. Wilkins, an Ohio Supreme Court case earlier this month that clarifies the distinction between a contractor's "resold" and "consumed" services for tax purposes.

Monthly Columns

What the Legislators Are Considering
Now you can link to information on pending legislation of particular interest, updated daily.

What the Courts Are Saying . . .
The five cases that fill this month's column cover these topics: (1) delay claims asserted by a subcontractor against a payment bond, (2) the role of "industry standards" in contract compliance, (3) insurance coverage for breach of contract, (4) enforcing a modified dispute resolution clause, and (5) arbitration of a wrongful death claim--is it required or not?

Upcoming Seminars
See information on upcoming construction seminars featuring Bricker & Eckler construction attorneys.

Holman, Gillis & Shevelow on Construction Documents: The Contractor's Duty To Detect (& Report) Design Errors
Doug Shevelow discusses how several standard contracts and one court opinion treat a contractor's duty to detect and report errors in the plans and specifications.

OSHA Corner: What's New in the World of Job Safety?
Read this to stay up-to-date on news and information regarding OSHA and job safety.

ADR Corner
Sam Wampler explores a recent Ohio Court of Appeals opinion and concludes that even a complete record of an arbitration won't guarantee a litigant success in challenging the arbitrator's decision.