Home Construction Contractors: 3 Details You Must Always Cover in Ohio
Three things that can bury your residential construction business are Registration, Insurance, and Permitting (RIP).
Ignore them and they will come back to haunt you.
Registration
Ohio law requires contractors to be registered with the local building department in any municipality you work in. If you’re a plumber, HVAC contractor, electrician or other tradesperson requiring licensure, then you also need to be licensed by the state.
Skipping this step can be a violation of the Consumer Sales Practices Act (CSPA). Which means that if a homeowner files a claim, you could wind up digging your own grave in court.
Insurance
The Home Construction Service Suppliers Act (HCSSA) requires builders to carry at least $250,000 in liability insurance. And it’s not enough to simply have the coverage—you must attach a copy of your insurance certificate to your contracts.
No insurance? Or don’t have enough of it? (Remember, $250K is the magic number here.) That’s like working without a safety harness.
Failure to meet insurance requirements means you lose the protection of the HCSSA, and fall under the CSPA — which can expose you to treble (triple) damages if something goes wrong.
Permitting
Every contractor knows permits can be a hassle, but ignoring them can be downright deadly. If a homeowner can connect damages to your failure to get the proper permits, you’re on the hook for triple the damages, plus legal fees.
In construction, the devil’s in the details. Don’t let RIP send your business to an early grave.
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.