Ohio Home Construction Contractors: You Need Default and Cure Provisions

I’m a committed Ohio State Buckeyes fan, so it pains me to say that there is at least one way Michigan has a leg up on our state. 

In Michigan (and other states), a homeowner who’s hired a contractor for a construction project can’t terminate that contractor without…

  1. Issuing written notice to the contractor of the alleged breach, and…
  2. providing the contractor a reasonable opportunity to “cure the breach” (i.e. fix the problem) before terminating the contract 

In Ohio, this is *not* the case.

Unless your contract states otherwise, your customer (an Ohio homeowner) can terminate their contract with you if there’s any sort of material breach of the contract. They do not have to give you a chance to fix the problem.  

Worse: In practice, all it takes is an *alleged* breach of the contract for the owner to terminate your contract and move on. They can hire a new contractor as a remedy. And you’re left holding the bag.   

If that happens, all you can do if you’re the original builder or remodeler is hire a lawyer, possibly file a lawsuit, and then ~maybe~ win any amounts due. 

To avoid this nightmare, every contractor in Ohio should have a “notice and opportunity to cure” provision in their contract. 

Using a provision like this, the homeowner must… 

(A) give you a written notice stating a claim of breach, and the reasons for it

(B) offer a certain number of days to allow you to “cure” the breach or fix the issue  

If the owner fails to do either (A) or (B) with such a provision in place, and then proceeds to terminate the contract, the owner is in breach of the contract, not the contractor. 

Ohio has another statute (O.R.C. 1312.03) that allows contractors to put language in their contracts requiring the owner to give you the chance to fix any defects, and wait 60 days before filing a lawsuit. 

But you must include that language in your contract in order for you to have those rights. 

If you’re a home construction contractor and would like help with your residential construction contract, fill out our contact us form. Reference this article and you’ll get a complimentary consultation with one of our legal team members. 

You can also find more related information in our Guide to Avoiding Residential Construction Contract Nightmares.