As Introduced 1
123rd General Assembly 4
Regular Session H. B. No. 491 5
1999-2000 6
REPRESENTATIVES WILLAMOWSKI-NETZLEY-TAYLOR-SCHULER- 8
TERWILLEGER-TIBERI-VAN VYVEN-WINKLER-CORBIN-EVANS- 9
HOLLISTER-ROMAN-HARTNETT 10
_________________________________________________________________ 11
A B I L L
To amend section 4113.62 of the Revised Code to 13
specify that a construction contract containing a 14
provision subjecting the contract to the laws of
another state is void. 15
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 17
Section 1. That section 4113.62 of the Revised Code be 19
amended to read as follows: 20
Sec. 4113.62. (A) Any provision of a construction 30
contract, agreement, or understanding that waives rights under a 31
surety bond is void and unenforceable as against public policy. 32
(B) Any provision of a construction contract, agreement, 35
or understanding, or specification or other documentation that is 36
made a part of a construction contract, agreement, or 37
understanding, that waives any pending or asserted claim on the 38
basis of final payment made from one person to another for the 39
construction contract, agreement, or understanding, is void and 40
unenforceable as against public policy, when the person against 41
whom the claim is pending or asserted has received notice of that 42
pending or asserted claim. Nothing in this division precludes 43
parties to a construction contract, agreement, or understanding 44
from entering into a subsequent settlement agreement arising from 45
a claim under that construction contract, agreement, or 46
understanding.
(C)(1) Any provision of a construction contract, 49
2
agreement, or understanding, or specification or other 50
documentation that is made a part of a construction contract, 51
agreement, or understanding, that waives or precludes liability 52
for delay during the course of a construction contract when the 53
cause of the delay is a proximate result of the owner's act or 54
failure to act, or that waives any other remedy for a 55
construction contract when the cause of the delay is a proximate
result of the owner's act or failure to act, is void and 56
unenforceable as against public policy. 57
(2) Any provision of a construction subcontract, 59
agreement, or understanding, or specification or other 60
documentation that is made part of a construction subcontract, 61
agreement, or understanding, that waives or precludes liability 62
for delay during the course of a construction subcontract when 63
the cause of the delay is a proximate result of the owner's or 64
contractor's act or failure to act, or that waives any other
remedy for a construction subcontract when the cause of the delay 65
is a proximate result of the owner's or contractor's act or 66
failure to act, is void and unenforceable as against public 67
policy.
(D) ANY PROVISION OF A CONSTRUCTION CONTRACT, AGREEMENT, 69
OR UNDERSTANDING, OR SPECIFICATION OR OTHER DOCUMENTATION THAT IS 70
MADE A PART OF A CONSTRUCTION CONTRACT, AGREEMENT, OR 71
UNDERSTANDING, FOR AN IMPROVEMENT TO REAL ESTATE IN THIS STATE 72
THAT MAKES THE CONSTRUCTION CONTRACT SUBJECT TO THE LAWS OF
ANOTHER STATE OR THAT REQUIRES THAT ANY LITIGATION, ARBITRATION, 73
OR OTHER DISPUTE RESOLUTION PROCESS ON THE CONTRACT OCCUR IN 74
ANOTHER STATE IS VOID AND UNENFORCEABLE AS AGAINST PUBLIC POLICY. 75
(E) No construction contract, agreement, or understanding 78
that makes payment from a contractor to a subcontractor or 79
materials supplier, or from a subcontractor to a materials 80
supplier, lower tier subcontractor, or lower tier materials 81
supplier contingent or conditioned upon receipt of payment from 82
any other person shall prohibit a person from filing a claim to
3
protect rights under sections 153.56, 1311.06, and 1311.26 of the 84
Revised Code from expiring during the pendency of receipt of 87
payment.
(E)(F) Nothing in this section shall be construed to 89
create a liability for a surety on a bond that is greater than 91
that of its principal, or limit the availability to a surety of 92
any defenses available to its principal.
(F)(G) As used in this section: 95
(1) "Contractor" and "lower tier subcontractor" have the 98
same meanings as in section 4113.61 of the Revised Code. 101
(2) "Materials supplier" includes any person by whom any 103
materials are furnished in furtherance of an improvement. 104
(3) "Lower tier materials supplier" means a materials 106
supplier who is not in privity of contract with a contractor but 107
is in privity of contract with another subcontractor or a 108
materials supplier.
(4) "Subcontractor," "improvement," and "materials" have 110
the same meanings as in section 1311.01 of the Revised Code. 111
Section 2. That existing section 4113.62 of the Revised 113
Code is hereby repealed. 114