Buyer Beware
(June 2011) - In today’s difficult economic times, particularly within the building industry, many builders have turned to smaller projects to keep their employees busy. These include remodeling projects, additions, or commercial build-outs. However, keep in mind that these types of work share the same risks, and in some cases, have greater risks than a full scale construction project. Among these risks are the following:
Ohio’s Consumer Sales Practices Act (CSPA) – Any project completed for an individual for personal or household use can fall within the ambit of the CSPA. Even if you are a commercial contractor doing plumbing on a $5 million dollar residential project, this statute may apply to you. Always ensure that your contracts, advertisements, and promises to the consumer comply with the CSPA. Failure to do so could result in treble damages and attorneys’ fees being awarded against you.
The Home Sales Solicitation Act (HSSA) – If you do not have a fixed place of business, or if you enter into a contract with a residential customer at his home, you may be subject to certain requirements pursuant to the HSSA. Among these are the requirement that you give a three-day right of rescission (a cooling off period), and certain contractual language that is required. Failure to follow the HSSA can lead to claims under both the HSSA and the CSPA; which can lead to rescission of the contract and the homeowner being permitted to retain the work/services.
New Federal Lead Rules – In 2010, the U.S. Environmental Protection Agency (USEPA) promulgated new regulations for anyone performing renovation on homes built before 1978. Essentially, if you disturb more than twenty square feet of wall space/area in a remodeling or addition project, you are required to follow USEPA mandates regarding lead remediation. In addition to following these mandates, your employees must be certified to perform this lead remediation work. Ensure that your company is in compliance with the new USEPA lead remediation rules.
Local Building Codes – Commercial contractors who are responsible only to the state building code sometimes delve into residential projects, forgetting that cities and villages sometimes have their own building codes. The State of Ohio has set up the Residential Code of Ohio (RCO) which all cities must comply with if they have a building code department. However, nothing prevents a city, if it has its own building code department, from having a more stringent building code than the state mandates in the RCO. Ensure that you are in compliance with the local building authority where the work is being performed.
These are just a few of the issues that can arise, not only in big projects, but in the “smaller ones” as well. Being proactive before a project starts can prevent violation of state and federal rules and statutes and keep your company out of trouble. If you have any questions regarding these issues, or you would like a comprehensive review of your current contract documents, please feel free to contact Bob Preston, Co-Coordinator of Black McCuskey’s Construction Practice Area Group, at (330) 456-8341 or email .
