| Section 1.
That sections 153.54, 153.57, 1311.01, 1311.011, | 32 |
| 1311.02, 1311.021, 1311.03, 1311.04, 1311.05, 1311.12, 1311.13, | 33 |
| 1311.14, 1311.15, 1311.25, 1311.26, 1311.261, 1311.28, 1311.29, | 34 |
| 1311.32, 4113.61, 4740.01, 4740.04, 4740.05, 4740.06, 4740.07, | 35 |
| 4740.08, 4740.101, 4740.12, 5309.57, and 5525.16 be amended and | 36 |
| section 4740.15 of the Revised Code be enacted to read as follows: | 37 |
| (2) A certified check, cashier's check, or letter of
credit | 45 |
| pursuant to Chapter 1305. of the Revised Code, in
accordance with | 46 |
| division (C) of this section. Any such letter of
credit is | 47 |
| revocable only at the option of the beneficiary state,
political | 48 |
| subdivision, district, institution, or agency. The
amount of the | 49 |
| certified check, cashier's check, or letter of
credit shall be | 50 |
| equal to ten per cent of the bid. | 51 |
| (1) Provide that, if the bid is accepted, the bidder,
after | 54 |
| the awarding or the recommendation for the award of the
contract, | 55 |
| whichever the contracting authority designates, will enter
into a | 56 |
| proper contract in accordance with the bid, plans,
details, | 57 |
| specifications, and bills of material. If for any
reason, other | 58 |
| than as authorized by section 9.31 of the Revised
Code or division | 59 |
| (G) of this section, the bidder fails to enter
into the contract, | 60 |
| and the contracting authority awards the
contract to the next | 61 |
| lowest bidder, the bidder and the surety on
the bidder's bond are | 62 |
| liable to the state, political
subdivision,
district, institution, | 63 |
| or agency for the difference between
the
bid and that of the next | 64 |
| lowest bidder, or for a penal sum not to
exceed ten per cent of | 65 |
| the amount of the bond, whichever is less.
If the state, | 66 |
| political subdivision, district, institution, or
agency does not | 67 |
| award the contract to the next lowest bidder but
resubmits the | 68 |
| project for bidding, the bidder failing to enter
into the contract | 69 |
| and the surety on the bidder's bond,
except as provided
in | 70 |
| division (G) of this section, are liable to the state,
political | 71 |
| subdivision, district, institution, or agency for a
penal sum not | 72 |
| to exceed ten per cent of the amount of the bid or
the costs in | 73 |
| connection with the resubmission of printing new
contract | 74 |
| documents, required advertising, and printing and
mailing notices | 75 |
| to prospective bidders, whichever is less. | 76 |
| (2) Indemnify the state, political subdivision, district, | 77 |
|
institution, or agency against all damage suffered by failure to | 78 |
|
perform the contract according to its provisions and in
accordance | 79 |
| with the plans, details, specifications, and bills of
material | 80 |
| therefor and to pay all lawful claims of subcontractors, | 81 |
materialmenmaterial suppliers, and laborers for labor performed | 82 |
| or material
furnished in carrying forward, performing, or | 83 |
| completing the
contract; and agree and assent that this | 84 |
undertaking is for the
benefit of any subcontractor, materialman | 85 |
| material supplier, or laborer having a
just claim, as well as for | 86 |
| the state, political subdivision,
district, institution, or | 87 |
| agency. | 88 |
| (C)(1) A bid guaranty filed pursuant to division (A)(2) of | 89 |
|
this section shall be conditioned to provide that if the bid is | 90 |
|
accepted, the bidder, after the awarding or the
recommendation for | 91 |
| the award of the contract, whichever the
contracting authority | 92 |
| designates, will enter into a proper contract in
accordance with | 93 |
| the bid, plans, details, specifications, and
bills of material. If | 94 |
| for any reason, other than as authorized
by section 9.31 of the | 95 |
| Revised Code or division (G) of this
section, the bidder fails to | 96 |
| enter into the contract, and the
contracting authority awards the | 97 |
| contract to the next lowest
bidder, the bidder is liable to the | 98 |
| state, political subdivision,
district, institution, or agency for | 99 |
| the difference between the
bidder's
bid and that of the next | 100 |
| lowest bidder, or for a penal sum not to
exceed ten per cent of | 101 |
| the amount of the bid, whichever is less.
If the state, political | 102 |
| subdivision, district, institution, or
agency does not award the | 103 |
| contract to the next lowest bidder but
resubmits the project for | 104 |
| bidding, the bidder failing to enter
into the contract, except as | 105 |
| provided in division (G) of this
section, is liable to the state, | 106 |
| political subdivision, district,
institution, or agency for a | 107 |
| penal sum not to exceed ten per cent
of the amount of the bid or | 108 |
| the costs in connection with the
resubmission, of printing new | 109 |
| contract documents, required
advertising, and printing and mailing | 110 |
| notices to prospective
bidders, whichever is less. | 111 |
| If the bidder enters into the contract, the bidder,
at the | 112 |
| time the contract is entered to,
shall file a bond for the
amount | 113 |
| of the contract to indemnify the state, political
subdivision, | 114 |
| district, institution, or agency against all damage
suffered by | 115 |
| failure to perform the contract according to its
provisions and in | 116 |
| accordance with the plans, details,
specifications, and bills of | 117 |
| material therefor and to pay all
lawful claims of subcontractors, | 118 |
materialmenmaterial suppliers, and laborers for
labor performed | 119 |
| or material furnished in carrying forward,
performing, or | 120 |
| completing the contract; and agree and assent that
this | 121 |
undertaking is for the benefit of any subcontractor,
materialman | 122 |
| material supplier, or laborer having a just claim, as well as for | 123 |
| the
state, political subdivision, district, institution, or | 124 |
| agency. | 125 |
| (2) A construction manager who enters into a contract | 126 |
| pursuant to
sections 9.33 to 9.333 of the Revised Code,
if | 127 |
| required by the public owner at the time the
construction manager | 128 |
| enters into the contract, shall file a letter of credit
pursuant | 129 |
| to Chapter 1305. of the Revised Code,
bond, certified check, or | 130 |
| cashier's
check, for the value of the construction management | 131 |
| contract to indemnify the
state, political subdivision, district, | 132 |
| institution, or agency against all
damage suffered by the | 133 |
| construction manager's failure to perform the contract
according | 134 |
| to its provisions, and shall agree and assent that this | 135 |
| undertaking
is for the benefit of the state, political | 136 |
| subdivision, district, institution,
or agency. A letter of credit | 137 |
| provided by the construction manager is
revocable only at the | 138 |
| option of the beneficiary state, political subdivision,
district, | 139 |
| institution, or agency. | 140 |
| (D) Where the state, political subdivision, district, | 141 |
|
institution, or agency accepts a bid but the bidder fails or | 142 |
|
refuses to enter into a proper contract in accordance with the | 143 |
|
bid, plans, details, specifications, and bills of material within | 144 |
|
ten days after the awarding of the contract, the bidder and the | 145 |
|
surety on any bond, except as provided in division (G) of this | 146 |
|
section, are liable for the amount of the difference between the | 147 |
|
bidder's
bid and that of the next lowest bidder, but not in excess | 148 |
| of the
liability specified in division (B)(1) or (C) of this | 149 |
| section.
Where the state, political subdivision, district, | 150 |
| institution, or
agency then awards the bid to such next lowest | 151 |
| bidder and such
next lowest bidder also fails or refuses to enter | 152 |
| into a proper
contract in accordance with the bid, plans, details, | 153 |
|
specifications, and bills of material within ten days after the | 154 |
|
awarding of the contract, the liability of such next lowest | 155 |
|
bidder, except as provided in division (G) of this section, is
the | 156 |
| amount of the difference between the bids of such next lowest | 157 |
|
bidder and the third lowest bidder, but not in excess of the | 158 |
|
liability specified in division (B)(1) or (C) of this section. | 159 |
|
Liability on account of an award to any lowest bidder beyond the | 160 |
|
third lowest bidder shall be determined in like manner. | 161 |
| (E) Notwithstanding division (C) of this section, where
the | 162 |
| state, political subdivision, district, institution, or
agency | 163 |
| resubmits the project for bidding, each bidder whose bid
was | 164 |
| accepted but who failed or refused to enter into a proper | 165 |
|
contract, except as provided in division (G) of this section, is | 166 |
|
liable for an equal share of a penal sum in connection with the | 167 |
|
resubmission, of printing new contract documents, required | 168 |
|
advertising, and printing and mailing notices to prospective | 169 |
|
bidders, but no bidder's liability shall exceed the amount of
the | 170 |
| bidder's
bid guaranty. | 171 |
| (F) All bid guaranties filed pursuant to this section
shall | 172 |
| be payable to the state, political subdivision, district, | 173 |
|
institution, or agency, be for the benefit of the state,
political | 174 |
| subdivision, district, institution, or agency or any
person having | 175 |
| a right of action thereon, and be deposited with,
and held by, the | 176 |
| board, officer, or agent contracting on behalf
of the state, | 177 |
| political subdivision, district, institution, or
agency. All bonds | 178 |
| filed pursuant to this section shall be issued
by a surety company | 179 |
| authorized to do business in this state as
surety approved by the | 180 |
| board, officer, or agent awarding the
contract on behalf of the | 181 |
| state, political subdivision, district,
institution, or agency. | 182 |
| (G) A bidder for a contract with the state or any
political | 183 |
| subdivision, district, institution, or other agency
thereof, | 184 |
| excluding therefrom the Ohio department of
transportation, for a | 185 |
| public improvement costing less than
one-half million dollars may | 186 |
| withdraw the bid from
consideration
if the bidder's bid for some | 187 |
| other contract with the state
or any
political subdivision, | 188 |
| district, institution, or other agency
thereof, excluding | 189 |
| therefrom the department of transportation,
for the public | 190 |
| improvement costing less than one-half million
dollars has already | 191 |
| been accepted, if the bidder certifies in
good faith
that the | 192 |
| total amount of all the bidder's current contracts
is less than | 193 |
|
one-half million dollars, and if the surety certifies in good | 194 |
|
faith that the bidder is unable to perform the subsequent
contract | 195 |
| because to do so would exceed the bidder's bonding
capacity. If a | 196 |
| bid is withdrawn under authority of this
division, the contracting | 197 |
| authority may award the contract to the
next lowest bidder or | 198 |
| reject all bids and resubmit the project
for bidding, and neither | 199 |
| the bidder nor the surety on the
bidder's bond
are liable for the | 200 |
| difference between the bidder's bid and
that of the
next lowest | 201 |
| bidder, for a penal sum, or for the costs of printing
new contract | 202 |
| documents, required advertising, and printing and
mailing notices | 203 |
| to prospective bidders. | 204 |
| "KNOW ALL PERSONS BY THESE PRESENTS, that we, the undersigned | 228 |
|
............................ as principal and ................... | 229 |
|
as sureties, are hereby held and firmly bound unto | 230 |
|
................... in the penal sum of ............. dollars,
for | 231 |
| the payment of which well and truly to be made, we hereby
jointly | 232 |
| and severally bind ourselves, our heirs, executors, | 233 |
|
administrators, successors, and assigns. | 234 |
| Now, if the said ....................... shall well and | 241 |
|
faithfully do and perform the things agreed by .................. | 242 |
|
to be done and performed according to the terms of said contract; | 243 |
and shall pay all lawful claims of subcontractors, materialmen | 244 |
| material suppliers,
and laborers, for labor performed and | 245 |
| materials furnished in the
carrying forward, performing, or | 246 |
| completing of said contract; we
agreeing and assenting that this | 247 |
undertaking shall be for the
benefit of any materialmanmaterial | 248 |
| supplier or laborer having a just claim, as
well as for the | 249 |
| obligee herein; then this obligation shall be
void; otherwise the | 250 |
| same shall remain in full force and effect;
it being expressly | 251 |
| understood and agreed that the liability of
the surety for any and | 252 |
| all claims hereunder shall in no event
exceed the penal amount of | 253 |
| this obligation as herein stated. | 254 |
| "KNOW ALL PERSONS BY THESE PRESENTS, that we, the undersigned | 263 |
|
......... as principal and ............. as sureties, are hereby | 264 |
| held and
firmly bound unto ............. in the penal sum of | 265 |
| .............. dollars,
for the payment of which well and truly be | 266 |
| made, we hereby jointly and
severally bind ourselves, our heirs, | 267 |
| executors, administrators, successors,
and assigns. | 268 |
| Now, if the said ................ shall well and faithfully | 275 |
| do and perform
the things agreed by ............. to be done and | 276 |
| performed according to the
terms of the said contract; we agreeing | 277 |
| and assenting that this undertaking
shall be for the benefit of | 278 |
| the obligee herein; then this obligation shall be
void; otherwise | 279 |
| the same shall remain in full force and effect; it being
expressly | 280 |
| understood and agreed that the liability of the surety for any and | 281 |
|
all
claims hereunder shall in no event exceed the penal amount of | 282 |
| the obligation
as herein stated. | 283 |
| (E) "Original contractor," except as otherwise provided in | 305 |
|
section 1311.011 of the Revised
Code, includes a
construction | 306 |
|
manager and any person who undertakes to construct,
alter, erect, | 307 |
|
improve, repair, demolish, remove, dig, or drill
any part of any | 308 |
|
improvement under a contract with an owner, part
owner, or lessee. | 309 |
| (J) "Improvement" means constructing, erecting, altering, | 323 |
|
repairing, demolishing, or removing any building or appurtenance | 324 |
|
thereto, fixture, bridge, or other structure, and any gas
pipeline | 325 |
|
or well including, but not limited to, a well drilled or | 326 |
|
constructed for the production of oil or gas; the furnishing of | 327 |
|
tile for the drainage of any lot or land;
the excavation, cleanup, | 328 |
|
or removal of hazardous material or waste from real property; the | 329 |
|
enhancement or
embellishment of real property by seeding, sodding, | 330 |
|
or the
planting thereon of any shrubs, trees, plants, vines, small | 331 |
|
fruits, flowers, or nursery stock of any kind; and the grading or | 332 |
|
filling to establish a grade. | 333 |
| (1) "Home construction contract" means a contract entered | 337 |
|
into between an original contractor and an owner, part owner, or | 338 |
|
lessee for the improvement of any single- or double-family | 339 |
|
dwelling or portion of the dwelling or a residential unit of any | 340 |
|
condominium property that has been submitted to the provisions of | 341 |
|
Chapter 5311. of the Revised Code; an addition to any land; or
the | 342 |
| improvement of driveways, sidewalks, swimming pools, porches, | 343 |
|
garages, carports, landscaping, fences, fallout shelters, siding, | 344 |
|
roofing, storm windows, awnings, and other improvements that are | 345 |
|
adjacent to single- or double-family dwellings or upon lands that | 346 |
|
are adjacent to single- or double-family dwellings or residential | 347 |
|
units of condominium property, if the dwelling, residential unit | 348 |
|
of condominium property, or land is used or is intended to be
used | 349 |
| as a personal residence by the owner, part owner, or lessee. | 350 |
| (3) "Lending institution" means any person that enters
into a | 357 |
| contract with the owner, part owner, purchaser, or lessee
to | 358 |
| provide financing for a home construction contract or a home | 359 |
|
purchase contract, which financing is secured, in whole or in | 360 |
|
part, by a mortgage on the real estate upon which the
improvements | 361 |
| contemplated by the home construction contract are
to be made or | 362 |
| upon the property that is the subject of the home
purchase | 363 |
| contract, and that makes direct disbursements under the
contract | 364 |
| to any original contractor or the owner, part owner,
purchaser, or | 365 |
| lessee. | 366 |
(1) No original contractor, subcontractor, materialman | 377 |
| material supplier, or laborer has a lien to secure payment for | 378 |
| labor or
work performed
or materials furnished by the contractor, | 379 |
subcontractor,
materialmanmaterial supplier, or laborer, in | 380 |
| connection with a
home
construction contract between the original | 381 |
| contractor and the
owner, part owner, or lessee or in connection | 382 |
| with a dwelling or
residential unit of condominium property, that | 383 |
| is the subject of
a home purchase contract, if the owner, part | 384 |
| owner, or lessee
paid the original contractor in full or if the | 385 |
| purchaser has paid
in full for the amount of the home construction | 386 |
| or home purchase
contract price, and the payment was made prior to | 387 |
| the owner's,
part owner's, or lessee's receipt of a copy of an | 388 |
| affidavit of
mechanics' lien pursuant to section 1311.07 of the | 389 |
| Revised Code. | 390 |
| An owner, part owner, or lessee may file with the county | 391 |
|
recorder of the county in which the property that is the subject | 392 |
|
of a home construction contract or a home purchase contract is | 393 |
|
situated an affidavit that the owner, part owner, or
lessee has | 394 |
| made payment in accordance
with this division. Except if the | 395 |
| owner, part owner, or lessee
is guilty of fraud, any lien | 396 |
perfected on the property by any
subcontractor, materialman | 397 |
| material supplier, or laborer for labor
or work
performed or for | 398 |
| materials furnished is void and the property
wholly discharged | 399 |
| from the lien, if the lien was perfected after
full payment was | 400 |
| made in accordance with this division. The
recorder shall index | 401 |
| and record the affidavit in the same manner
that releases of | 402 |
| mortgages and other liens are indexed and
recorded, and shall | 403 |
| receive the same fees for indexing and
recording the affidavit | 404 |
| that are provided for the recording of
leases. | 405 |
| (2) If the original contractor has not been paid in full
as | 409 |
| provided in division (B)(1) of this section, no subcontractor, | 410 |
materialmanmaterial supplier, or laborer has a lien to secure | 411 |
|
payment for labor or work performed or materials furnished by the | 412 |
subcontractor,
materialmanmaterial supplier, or laborer for an | 413 |
| amount
greater than the amount due under the home construction | 414 |
| contract
that has not been paid to the original contractor for the | 415 |
| work,
labor, or materials or for an amount greater than the amount | 416 |
| of
the home purchase contract price that has not been paid to the | 417 |
|
original contractor. The total amount of all liens for labor or | 418 |
|
work performed or for materials furnished in connection with a | 419 |
|
home construction contract that may be enforced in lien | 420 |
|
foreclosure proceedings shall not exceed the amount due under the | 421 |
|
home construction contract that has not been paid to the original | 422 |
|
contractor or the amount due under the home purchase contract
that | 423 |
| has not been paid to the original contractor. | 424 |
| If the amount due under the home construction contract or | 425 |
|
under the home purchase contract to the original contractor is | 426 |
|
insufficient to secure the mechanics' liens of all lien claimants | 427 |
|
that arose out of the home construction contract or that arose
out | 428 |
| of a contract in connection with a dwelling or residential
unit of | 429 |
| condominium property, that is the subject of a home
purchase | 430 |
| contract, each mechanics' lien shall be secured by a pro
rata | 431 |
| share of the amount due to the original contractor, except
that | 432 |
| mechanics' liens filed by laborers have priority. The pro
rata | 433 |
| share shall be equal to the monetary amount of the amount
due to | 434 |
| the original contractor that is subject to all valid
mechanics' | 435 |
| liens on the property that is the subject of the home
purchase | 436 |
| contract or all valid mechanics' liens under the home
construction | 437 |
| contract multiplied by a fraction in which the
denominator is the | 438 |
| total monetary amount of all valid mechanics'
liens on the | 439 |
| property that is the subject of the home purchase
contract or of | 440 |
| all valid mechanics' liens that arose out of the
home construction | 441 |
| contract, and the numerator is the amount
claimed to be due by the | 442 |
| lien claimant under a contract in
connection with a dwelling or | 443 |
| residential unit of condominium
property, that is the subject of | 444 |
| the home purchase contract or
under the home construction | 445 |
| contract. | 446 |
| (3) If, after receiving written notice from an owner, part | 452 |
|
owner, purchaser, or lessee that full payment has been made by
the | 453 |
| owner, part owner, purchaser, or lessee to the original
contractor | 454 |
| for the amount of the home construction or home
purchase contract | 455 |
| and that payment was made prior to the owner's,
part owner's, or | 456 |
| lessee's receipt of a copy of an affidavit of
mechanics' lien | 457 |
| pursuant to section 1311.07 of the Revised Code,
the lienholder | 458 |
| fails within thirty days after receipt of the
notice to cause the | 459 |
| lien securing payment for the work, labor, or
materials to be | 460 |
| released of record, the lienholder is liable to
the owner, part | 461 |
| owner, or lessee for all damages arising from
the lienholder's | 462 |
| failure to cause the lien to be released. Damages shall include, | 463 |
| but are not limited to, court costs and reasonable attorney fees | 464 |
| incurred during any litigation between the owner and a lien | 465 |
| claimant or lien claimants who have refused to release their liens | 466 |
| after receiving a copy of the affidavit referred to in division | 467 |
| (B)(1) of this section, or evidence that the cost of completing a | 468 |
| home construction contract exceeded, or is reasonably expected to | 469 |
| exceed, the balance due the original contractor under the home | 470 |
| construction contract as provided in division (B)(2) of this | 471 |
| section. | 472 |
| (5) When making any payment under the home construction | 486 |
|
contract or on behalf of the owner or part owner under a home | 487 |
|
purchase contract, the lending institution may accept the | 488 |
|
affidavit of the original contractor required by division (B)(4) | 489 |
|
of this section and act in reliance upon it, unless it appears to | 490 |
|
be fraudulent on its face. The lending institution is not | 491 |
|
financially liable to the owner, part owner, purchaser, lessee,
or | 492 |
| any other person for any payments, except for gross negligence
or | 493 |
| fraud committed by the lending institution in making any
payment | 494 |
| to the original contractor. | 495 |
| (6) Any owner, part owner, purchaser, or lessee, who
requests | 501 |
| an original contractor to supply the affidavit required
by | 502 |
| division (B)(4) of this section, may withhold any payment that
is | 503 |
| due under the home construction contract or under the home | 504 |
|
purchase contract until the original contractor provides the | 505 |
|
owner, part owner, purchaser, or lessee with the affidavit. The | 506 |
|
owner's, part owner's, purchaser's, or lessee's remedies and | 507 |
|
rights under this section shall not be prejudiced by the
owner's, | 508 |
| part owner's, purchaser's, or lessee's failure
to request or to | 509 |
| obtain the affidavit provided for in division
(B)(4) of this | 510 |
| section. | 511 |
(8) If a subcontractor, materialmanmaterial supplier, or | 516 |
| laborer
refuses to
supply a lien release to the original | 517 |
| contractor, owner, part
owner, lessee, or lending institution | 518 |
| because the amount of money
that the original contractor owes the | 519 |
subcontractor, materialmanmaterial supplier, or laborer is in | 520 |
| dispute, the owner, part owner,
lessee, and
lending institution | 521 |
| shall withhold from payment to the original
contractor an amount | 522 |
| of money equal to the amount of money
claimed by the | 523 |
subcontractor, materialmanmaterial supplier, or
laborer. If a | 524 |
subcontractor, materialmanmaterial supplier, or
laborer refuses | 525 |
| within ten days
after receipt of a written request from either the | 526 |
| original
contractor or the lending institution to state the amount | 527 |
| due and
the last date that the lien claimant performed any labor | 528 |
| or work
or furnished any material in furtherance of the | 529 |
| improvement which
gives rise to the lien claimant's lien claim, | 530 |
| the amount and the
last date shall
be stated by the original | 531 |
| contractor. The owner, part owner,
lessee, and lending institution | 532 |
| shall pay the withheld amount of
money to the original contractor | 533 |
| when any of the following occur: | 534 |
| Sec. 1311.02. Every person who performs work or labor upon | 553 |
| or furnishes
material in furtherance of any improvement undertaken | 554 |
| by virtue of a contract,
express or implied, with the owner, part | 555 |
owner, or lessee of any interest in
real estate, or histhe | 556 |
| owner's, part owner's, or lessee's
authorized agent, and every | 557 |
person who as a subcontractor,
laborer, or material mansupplier, | 558 |
| performs any labor or
work or furnishes any material
to an | 559 |
| original contractor or any subcontractor, in carrying forward, | 560 |
|
performing, or completing any improvement, has a lien to secure | 561 |
| the payment
therefor upon the improvement and all interests that | 562 |
| the owner, part owner, or
lessee may have or subsequently acquire | 563 |
| in the land or leasehold to which the
improvement was made or | 564 |
| removed. | 565 |
| Sec. 1311.021. (A) Every person who performs any labor or | 566 |
|
work upon or furnishes material for digging, drilling, boring, | 567 |
|
operating, completing, or repairing, any well drilled or | 568 |
|
constructed for the production of oil or gas or any injection
well | 569 |
| which furthers the production of oil and gas or which
disposes of | 570 |
| waste products generated by oil and gas operations,
or for | 571 |
| altering, repairing, or constructing any oil derrick, oil
tank, or | 572 |
| leasehold production pipe line by virtue of a contract,
express or | 573 |
implied, with the owner or part owner, or histhe owner's
or part | 574 |
| owner's authorized agent, of any oil and gas lease or leasehold | 575 |
|
estate
or, in the event there is no lease or estate, any mineral | 576 |
estate,
and every subcontractor, laborer, and materialmanmaterial | 577 |
| supplier
who performs any labor or work or furnishes material to | 578 |
| an original contractor
or any subcontractor, in carrying forward, | 579 |
| performing, or
completing the contract, has a lien to secure the | 580 |
| payment thereof
upon the oil and gas lease or leasehold estate or, | 581 |
| in the event
there is no lease or estate, any mineral estate, the | 582 |
| oil or gas
produced therefrom and the proceeds thereof, and upon | 583 |
| all
material located thereon or used in connection therewith. | 584 |
| (5) An owner, part owner, or lessee may request from an | 614 |
|
original contractor an affidavit setting forth the name and | 615 |
|
address of, a description of labor or work performed or materials | 616 |
|
furnished by, and the total amount of the contract and the
balance | 617 |
owed to, all unpaid laborers, subcontractors, and
materialmen | 618 |
| material suppliers providing labor or work or
furnishing material | 619 |
| for
the improvement, and the serving of the affidavit after such a | 620 |
|
request shall be a condition precedent to any right by the | 621 |
|
original contractor to file a lien under this section. If an | 622 |
|
owner, part owner, or lessee has not made a request under this | 623 |
|
division, the original contractor need not serve an affidavit as | 624 |
|
provided in this division to file a lien under this section. | 625 |
| (6)(a) An owner, part owner, or lessee who receives an | 626 |
|
affidavit pursuant to division (C)(5) of this section or a notice | 627 |
|
pursuant to division (C)(6)(c) of this section may make payment | 628 |
|
jointly to the original contractor and any laborers, | 629 |
subcontractors, and materialmenmaterial suppliers who are listed | 630 |
|
in such an
affidavit or who serve such a notice for the amount | 631 |
| shown to be
unpaid by such affidavit and notices or may require | 632 |
| the original
contractor to obtain lien waivers from any such | 633 |
| persons prior to
making payment to the original contractor. | 634 |
| (b) No person who fails to serve the owner, part owner, or | 635 |
|
lessee with a notice pursuant to division (C)(6)(c) of this | 636 |
|
section and who is omitted from an affidavit provided to the | 637 |
|
owner, part owner, or lessee pursuant to division (C)(5) of this | 638 |
|
section shall have a right to file a lien pursuant to this
section | 639 |
| if the owner has paid the full amount due on the
contract, | 640 |
| including payment to the parties listed on the
affidavit or from | 641 |
| whom notices were received either in the full
amount due to such | 642 |
| parties or in such lesser amount as represents
their pro-rata | 643 |
| portion of the full amount of the contract with
the original | 644 |
| contractor. | 645 |
(c) Any laborer, subcontractor, or materialmanmaterial | 646 |
| supplier
may serve upon the owner, part owner, or lessee a notice | 647 |
| in writing, which
notice shall be such as will inform the owner, | 648 |
| part owner, or
lessee of the improvement, of the nature of the | 649 |
| work performed or
to be performed, the materials furnished or to | 650 |
| be furnished, the
amount due or to become due therefor, the | 651 |
| identity of the person
with whom such laborer, subcontractor, or | 652 |
materialmanmaterial supplier has contracted, and the identity of | 653 |
| the well, oil
derrick, oil tank,
or leasehold production pipe | 654 |
| line, the permit number, and the
county upon which such work was | 655 |
| or is to be performed or
materials were or are to be furnished. | 656 |
| Sec. 1311.03. Any person who performs labor or work or | 662 |
| furnishes material,
for the construction, alteration, or repair of | 663 |
| any street, turnpike, road,
sidewalk, way, drain, ditch, or sewer | 664 |
by virtue of a private contract between
himthe person and the | 665 |
| owner, part owner, or lessee of lands
upon which the same may be | 666 |
|
constructed, altered, or repaired, or of lands abutting thereon, | 667 |
or as
subcontractor, laborer, or materialmanmaterial supplier, | 668 |
| performs
labor or work or furnishes
material to such original | 669 |
| contractor or to any subcontractor in carrying
forward or | 670 |
| completing such contract, has a lien for the payment thereof | 671 |
|
against the lands of the owner, part owner, or lessee, upon which | 672 |
| the street,
turnpike, road, sidewalk, way, drain, or sewer is | 673 |
| constructed or upon which
any such street, turnpike, road, | 674 |
| sidewalk, way, drain, ditch, or sewer abuts,
as provided in | 675 |
| section 1311.02 of the Revised Code. | 676 |
| Sec. 1311.04. (A)(1) Prior to the performance of any
labor | 677 |
|
or work or the furnishing of any materials for an
improvement on | 678 |
|
real property which may give rise to a mechanics'
lien under | 679 |
|
sections 1311.01 to 1311.22 of the Revised Code, the
owner, part | 680 |
|
owner, or lessee who contracts for the labor, work,
or materials | 681 |
|
shall record in the office of the county recorder
for each county | 682 |
|
in which the real property to be improved is
located a notice of | 683 |
|
commencement in substantially the form
specified in division (B) | 684 |
|
of this section. | 685 |
| (2) Only one notice of commencement is required to be
filed | 686 |
|
for a single improvement and if more than one notice of | 687 |
|
commencement is filed for a single improvement, all notices filed | 688 |
|
after the original notice shall be deemed to be amendments to the | 689 |
|
original notice. If an owner, part owner, or lessee contracts
with | 690 |
| additional original contractors, lenders, or sureties not | 691 |
|
identified in the original notice of commencement filed for the | 692 |
|
improvement, the owner, part owner, or lessee shall amend the | 693 |
|
original notice of commencement to identify the additional | 694 |
|
original contractors, lenders, and sureties. The date of the | 695 |
|
filing of the amended notice is the date of the filing of the | 696 |
|
original notice of commencement. | 697 |
| (C) If the notice of commencement furnished by or for an | 745 |
|
owner, part owner, or lessee contains incorrect information, the | 746 |
|
owner, part owner, or lessee is liable for any loss of lien
rights | 747 |
|
of a lien claimant and any actual expenses incurred by the
lien | 748 |
|
claimant in maintaining lien rights, including attorney's
fees, if | 749 |
|
the loss and expenses incurred are a direct result of
the lien | 750 |
|
claimant's reliance on the incorrect information. | 751 |
| Any lien claimant who has included incorrect information in
| 752 |
|
the claimant's affidavit for a lien under section 1311.06 of
the | 753 |
|
Revised
Code, as a result of incorrect information contained
in | 754 |
|
the
notice of commencement, may file for record an amended | 755 |
|
affidavit
for a lien. The amended affidavit shall contain all of | 756 |
|
the
information required by section 1311.06 of the Revised Code | 757 |
|
for
an original affidavit. The lien claimant shall serve a copy
of | 758 |
|
the amended affidavit on the owner, part owner, or lessee as | 759 |
|
provided in section 1311.07 of the Revised Code. The lien
claimant | 760 |
| may file the amended affidavit for record at any time
during the | 761 |
| time that the lien acquired by the original affidavit
continues in | 762 |
| effect under section 1311.13 of the Revised Code.
In
no event | 763 |
| shall the amended affidavit extend such time period.
The
filing of | 764 |
| an amended affidavit does not constitute a waiver
of the
rights | 765 |
| granted by this division. | 766 |
| (D) Within ten days after the date a subcontractor,
material | 767 |
| supplier, or laborer serves a written
request
upon the
owner,
part | 768 |
| owner, or lessee, or designee for a
copy of
the notice
of | 769 |
|
commencement, the owner, part owner, lessee,
or
designee shall | 770 |
|
serve a copy of the notice of commencement to
the
requesting | 771 |
|
subcontractor,
material supplier, or
laborer. | 772 |
| (E) Within ten days after the date a subcontractor,
material | 773 |
| supplier, or laborer serves a written
request
for a copy
of
the | 774 |
| notice of commencement upon the original
contractor who has
been | 775 |
| provided with a notice of commencement
from the owner, part
owner, | 776 |
| or lessee, or designee and with whom
the subcontractor,
material | 777 |
| supplier, or laborer has
a
direct contract,
the original | 778 |
|
contractor shall serve a copy of
the
notice of commencement to
the | 779 |
|
requesting subcontractor,
material supplier, or
laborer. | 780 |
| (F) Within ten days after the date a subcontractor,
material | 781 |
| supplier, or laborer serves a written
request
for a copy
of
the | 782 |
| notice of commencement upon the
subcontractor
who has been | 783 |
|
provided with a notice of commencement
from the
owner, part
owner, | 784 |
|
lessee, designee, or original
contractor and
with whom the | 785 |
|
subcontractor,
material
supplier, or
laborer has a
direct | 786 |
|
contract, the
subcontractor
shall serve a
copy of the notice of | 787 |
|
commencement
upon the
requesting
subcontractor,
material
supplier, | 788 |
|
or
laborer. | 789 |
| (H) The owner, part owner, lessee, or designee shall serve
a | 799 |
|
copy of the notice of commencement upon the original
contractor. | 800 |
|
If the owner, part owner, lessee, or designee fails
to serve a | 801 |
|
copy of the notice of commencement upon the original
contractor, | 802 |
|
the owner, part owner, or lessee is liable to the
original | 803 |
|
contractor for all actual expenses incurred by the
original | 804 |
|
contractor in obtaining the information otherwise
provided by the | 805 |
|
notice of commencement. | 806 |
| (I) If the owner, part owner, lessee, or designee fails to | 807 |
|
record the notice of commencement in accordance with this
section, | 808 |
|
the time within which a subcontractor or
material
supplier may | 809 |
|
serve a notice of furnishing as required by section
1311.05 of
the | 810 |
|
Revised Code is extended until twenty-one days
after the
notice of | 811 |
|
commencement has been recorded.
A
subcontractor or material | 812 |
|
supplier need not serve a notice of
furnishing to preserve lien | 813 |
|
rights for the period before the
notice of
commencement is | 814 |
|
recorded. | 815 |
| (J) If the owner, part owner, lessee, or designee fails to | 816 |
|
serve, upon written request, the notice of commencement in | 817 |
|
accordance with this section, the time within which a | 818 |
|
subcontractor or
material supplier may serve a notice
of | 819 |
|
furnishing as
required by section 1311.05 of the Revised Code
is | 820 |
|
extended until
twenty-one days after the notice of commencement | 821 |
|
actually has
been served to the subcontractor or
material | 822 |
|
supplier.
The owner, part
owner, or lessee who fails to
serve the | 823 |
|
notice pursuant to this
section is liable to any
subcontractor or
| 824 |
|
material supplier who becomes
a lien
claimant for all actual | 825 |
|
expenses incurred by the lien
claimant in
obtaining the | 826 |
|
information that would have been
contained in the
notice. | 827 |
| (L) If an original contractor or subcontractor who has
been | 835 |
|
provided with a notice of commencement fails to serve a copy
of | 836 |
|
the notice of commencement to any subcontractor,
material | 837 |
|
supplier, or laborer who requests it, the original
contractor or | 838 |
|
subcontractor who fails to serve the copy of the
notice is liable | 839 |
|
to the subcontractor,
material
supplier, or laborer who
made the | 840 |
|
request for all costs incurred
by the subcontractor,
material | 841 |
|
supplier, or laborer
in
obtaining the information contained in
the | 842 |
|
notice
of
commencement,
provided that an original contractor or | 843 |
|
subcontractor who fails to
provide the notice upon request is not | 844 |
|
liable under this division
to any subcontractor,
material | 845 |
|
supplier, or laborer
with whom
the original
contractor or | 846 |
|
subcontractor is not in
direct privity of contract. | 847 |
| (M)(1) If after the first work, labor, or material has
been | 848 |
|
performed on or furnished to the improvement, the owner,
part | 849 |
|
owner, lessee, or designee fails to serve, record, or post a | 850 |
|
notice of commencement as required by this section, the original | 851 |
|
contractor may, in writing, request the owner, part owner,
lessee, | 852 |
|
or designee to serve, record, or post the notice. If an
owner, | 853 |
|
part owner, lessee, or
the designee
of an owner,
part owner,
or | 854 |
|
lessee fails or refuses to
serve, record, or post a notice of | 855 |
|
commencement within ten days
of receipt of a request, the owner, | 856 |
|
part owner, or lessee is
liable for
the owner's, part owner's,
or | 857 |
|
lessee's failure or
refusal and for the designee's failure
or | 858 |
|
refusal, without recourse to the original contractor for all | 859 |
|
damages, costs, and expenses which result from the filing of a | 860 |
|
valid mechanics' lien to the extent that the lien, damages,
costs, | 861 |
|
and expenses could have been avoided through proper
payment. | 862 |
| (N)(1) If the owner, part owner, or lessee fails to record
a | 873 |
|
notice of commencement or an amended notice, any person holding
a | 874 |
|
mortgage on the real property to be improved may record a
notice | 875 |
|
of commencement or an amended notice on behalf of the
owner, part | 876 |
|
owner, or lessee. If the owner, part owner, or
lessee fails to | 877 |
|
record a notice of commencement or an amended
notice within the | 878 |
|
later of ten days after the performance of any
labor or work or | 879 |
|
the furnishing of any material for an
improvement on real property | 880 |
|
which gives rise to a mechanics'
lien under sections 1311.01 to | 881 |
|
1311.22 of the Revised Code or
three days after service of a | 882 |
|
demand to record the notice or
amended notice by the original | 883 |
|
contractor, the original
contractor may record a notice of | 884 |
|
commencement or an amended
notice on behalf of the owner, part | 885 |
|
owner, or lessee. | 886 |
| (2) If the original contractor or a mortgage holder has | 887 |
|
recorded a notice of commencement or an amended notice on behalf | 888 |
|
of the owner, part owner, or lessee, the owner, part owner, or | 889 |
|
lessee is liable to the original contractor or mortgage holder
for | 890 |
|
all costs and expenses incurred in obtaining the information | 891 |
|
contained in the notice of commencement or an amended notice and | 892 |
|
all costs incurred in the preparation and recording of the notice | 893 |
|
of commencement or an amended notice. | 894 |
(O) This section does not apply to any improvement made | 905 |
pursuant to a home construction contract as defined in section | 906 |
|
1311.011 of the Revised Code, except that when a lending | 907 |
| institution as defined in division (A)(3) of section 1311.011 of | 908 |
| the Revised Code requires that a notice of commencement be | 909 |
| recorded as part of the financing for a home construction | 910 |
| contract, which is secured in whole or in part by a mortgage on | 911 |
| real estate upon which the improvements are to be constructed, the | 912 |
| owner, part owner, or lessee may file a notice of commencement | 913 |
| pursuant to this section by recording the notice of commencement | 914 |
| in the county recorder's office of the county where the owner, | 915 |
| part owner, or lessee's property is located. If the property is | 916 |
| located in more than one county, the owner, part owner, or lessee | 917 |
| shall record the notice of commencement in the county recorders' | 918 |
| office of each county in which the property is located. | 919 |
| (P) The county recorder of the county where a notice of | 926 |
|
commencement is filed for record shall endorse the date and hour | 927 |
|
of its filing and cause it to be recorded as mechanics' liens are | 928 |
|
recorded, and collect the same fees for recording the notice of | 929 |
|
commencement as are provided in section 317.32 of the Revised | 930 |
|
Code. The recorder shall index the real property described in
the | 931 |
|
notice of commencement and shall index the names of all
owners, | 932 |
|
part owners, lessees, and land contract vendees in the
direct | 933 |
|
index and the names of all original contractors in the
reverse | 934 |
|
index as provided for in section 317.18 of the Revised
Code. | 935 |
| (Q) Notwithstanding this section, if the owner, part
owner, | 936 |
|
or lessee is a telephone company, an electric light
company, a gas | 937 |
|
company, a water works company, all as defined in
section 4905.03 | 938 |
|
of the Revised Code, or a subsidiary or affiliate
thereof, the | 939 |
|
owner, part owner, or lessee may, but is not
required to, record a | 940 |
|
notice of commencement pursuant to division
(A) of this section, | 941 |
|
and is not required to serve, post, and
provide copies of a notice | 942 |
|
of commencement pursuant to divisions
(D), (G), and (H) of this | 943 |
|
section unless such owner, part owner,
or lessee elects to record | 944 |
|
the notice of commencement. If the
owner, part owner, or lessee | 945 |
|
elects to record the notice of
commencement and the improvement | 946 |
|
extends beyond one parcel of
real property or one county, the | 947 |
|
owner, part owner, or lessee
may, in lieu of using the legal | 948 |
|
description required in division
(B)(1) of this section, use a | 949 |
|
description which reasonably
describes the real property on which | 950 |
|
the improvement is to be
made. Any description used other than
the | 951 |
| description specified
in division (B)(1) of this section shall | 952 |
|
refer to the township
and county in which the improvement is | 953 |
|
located, the name and
route number of any local, state, or federal | 954 |
|
highway near the
improvement, if any, the post office address of | 955 |
|
the real
property, if any, and the name by which the owner, part | 956 |
|
owner, or
lessee refers to the improvement. | 957 |
| If an owner, part owner, or lessee elects not to record, | 958 |
|
serve, post, or provide copies of a notice of commencement | 959 |
|
pursuant to divisions (A), (D), (G)(1), and (H) of this section,
| 960 |
|
the owner, part owner, or lessee is subject to all applicable | 961 |
|
liabilities pursuant to divisions
(C), (H), (J), (K), (M), and (N) | 962 |
|
of this section. | 963 |
| Sec. 1311.05. (A) Except as provided in section 1311.04
of | 975 |
the Revised Code and this section, a subcontractor or
materialman | 976 |
| material supplier who performs labor or work upon or furnishes | 977 |
|
material
in furtherance of an improvement to real property and who | 978 |
wishes
to preserve
histhe subcontractor's or material supplier's | 979 |
|
lien
rights shall serve a notice of furnishing,
if any person has | 980 |
|
recorded a notice of commencement in accordance
with section | 981 |
|
1311.04 of the Revised Code, upon the owner's, part
owner's, or | 982 |
|
lessee's designee named in the notice of commencement
or amended | 983 |
|
notice and the original contractor under the original
contract | 984 |
pursuant to which
hethe subcontractor or
material supplier is | 985 |
|
performing labor or work or
furnishing materials, as named in the | 986 |
|
notice of commencement or
amended notice and at the address listed | 987 |
|
in the notice or amended
notice at any time after the recording of | 988 |
|
the notice of
commencement or amended notice but within twenty-one | 989 |
|
days after
performing the first labor or work or furnishing the | 990 |
|
first
materials or within the extended time period provided for in | 991 |
|
division (I) or (J) of section 1311.04 of the Revised Code. If
an | 992 |
|
owner, part owner, or lessee has not named a designee in the | 993 |
|
notice of commencement or amended notice or if the designee has | 994 |
|
died or otherwise has ceased to exist, the subcontractor or | 995 |
materialmanmaterial supplier shall serve the notice of furnishing | 996 |
|
upon the owner,
part owner, or lessee named in the notice of | 997 |
|
commencement. If no
designee is named or if the designee has died | 998 |
|
or otherwise has
ceased to exist, and if more than one owner is | 999 |
|
named in the
notice of commencement, service of the notice of | 1000 |
|
furnishing to
the first owner, part owner, or lessee named in the | 1001 |
|
notice of
commencement is sufficient. No original contractor has | 1002 |
|
to serve
a notice of furnishing to preserve lien rights arising | 1003 |
|
from a
contract with an owner, part owner, or lessee. No | 1004 |
materialmanmaterial supplier
who is in direct privity of contract | 1005 |
|
with an owner, part owner,
or lessee has to serve a notice of | 1006 |
|
furnishing upon the owner,
part owner, or lessee or designee in | 1007 |
order to preserve
histhe
material supplier's lien rights. No | 1008 |
subcontractor or
materialmanmaterial supplier who is in direct | 1009 |
|
privity
of contract with the original contractor has to serve a | 1010 |
|
notice of
furnishing upon the original contractor in order to | 1011 |
preserve
histhe
subcontractor's or material supplier's lien | 1012 |
| rights. | 1013 |
A subcontractor or
materialmanmaterial supplier who serves a | 1022 |
|
notice of furnishing in conformity with this section does not have | 1023 |
to serve
an amended notice of furnishing on any party if
hethe | 1024 |
|
subcontractor
or material supplier receives an
amended notice of | 1025 |
commencement subsequent to service of
histhe
subcontractor's or | 1026 |
|
material supplier's notice of furnishing. If a
subcontractor or | 1027 |
materialmanmaterial supplier serves a
notice of furnishing based | 1028 |
|
upon information contained in any
notice of commencement or | 1029 |
|
amended notice of commencement relative
to the improvement for | 1030 |
which
hethe subcontractor or
material supplier performs labor or | 1031 |
|
work or
furnishes material, the notice of furnishing is deemed | 1032 |
|
effective
even if the notice of commencement already has been | 1033 |
|
amended or is
amended in the future. | 1034 |
| If a lender is named in the notice of commencement or
amended | 1035 |
notice, a subcontractor or
materialmanmaterial supplier
may serve | 1036 |
| a
copy
of the notice of furnishing upon the lender at the address | 1037 |
|
listed
in the notice or amended notice, provided that no | 1038 |
subcontractor
or
materialmanmaterial supplier is required to | 1039 |
| serve a
copy of the
notice of furnishing upon the lender to | 1040 |
preserve
histhe
subcontractor's or material supplier's lien | 1041 |
| rights. The
receipt
of a notice of furnishing by a lender imposes | 1042 |
| no duty
upon the
lender by implication or otherwise with respect | 1043 |
| to the
disbursement of any loan proceeds or the payment to any | 1044 |
subcontractor,
materialmanmaterial supplier, or any other person. | 1045 |
| (D)(1) Except as provided in division (D)(2) of this
section, | 1084 |
| a notice of furnishing served more than twenty-one days
after a | 1085 |
subcontractor or
materialmanmaterial supplier who is
required by | 1086 |
| this
section to serve a notice of furnishing, first
performed | 1087 |
| labor or
work or furnished material at the site of the
improvement | 1088 |
preserves the subcontractor's or
materialman'smaterial supplier's | 1089 |
|
lien rights for
amounts owing for labor and work
performed and | 1090 |
| materials
furnished within the twenty-one-day period
immediately | 1091 |
| preceding
service of the notice of furnishing and
thereafter, but | 1092 |
| does not
revive any prior lien rights for labor or
work performed | 1093 |
| or
materials furnished prior to the twenty-one days
immediately | 1094 |
|
preceding service of the notice of furnishing. | 1095 |
| (2) A notice of furnishing served within the applicable | 1096 |
|
period provided for in section 1311.04 of the Revised Code | 1097 |
preserves the subcontractor's or
materialman'smaterial supplier's | 1098 |
|
lien rights for
amounts owing for labor and work performed and | 1099 |
|
materials
furnished from the date the labor or work was first | 1100 |
|
performed or
materials were first furnished through the date of | 1101 |
|
service of the
notice of furnishing and thereafter. A notice of | 1102 |
|
furnishing
served after the applicable period provided for in | 1103 |
|
section
1311.04 of the Revised Code does not revive any prior lien | 1104 |
|
rights
for labor or work performed or materials furnished prior to | 1105 |
|
the
twenty-one days immediately preceding service of the notice of | 1106 |
|
furnishing. | 1107 |
(H) No subcontractor or
materialmanmaterial supplier who | 1118 |
|
performs
labor or work upon or furnishes material in furtherance | 1119 |
|
of an improvement
has to serve a notice of furnishing in | 1120 |
accordance with this
section in order to preserve
histhe | 1121 |
|
subcontractor's or
material supplier's lien rights if the owner, | 1122 |
| part
owner, or lessee who contracted for the labor, work, or | 1123 |
| materials
fails to record a notice of commencement in accordance | 1124 |
| with
section 1311.04 of the Revised Code. | 1125 |
(D) All of the deliveries or the sales, or both, by a lien | 1169 |
claimantmaterial supplier of materials, including tools and | 1170 |
| machinery to or for an
improvement, as ordered or purchased by an | 1171 |
| owner, original contractor, or subcontractor, shall give rise to | 1172 |
| one mechanics' lien for the unpaid
portion of the sales to that | 1173 |
| owner, original contractor, or subcontractor. Nothing in this | 1174 |
| division shall prohibit the filing of more than one lien if a | 1175 |
| material supplier sold materials to more than one owner, original | 1176 |
| contractor, or subcontractor for the same improvement. | 1177 |
Sec. 1311.13. (A)(1) LiensAll liens under sections 1311.01 | 1178 |
| to
1311.22 of the Revised Code for labor or work performed or | 1179 |
|
materials furnished to the same improvement prior to the recording | 1180 |
| of the notice of
commencement pursuant to section 1311.04 of the | 1181 |
| Revised Code are
effective from the date the first visible work or | 1182 |
| labor is
performed or the first materials are furnished by the | 1183 |
first original
contractor, subcontractor, materialmanmaterial | 1184 |
supplier, or laborer at the site ofto work, labor on, or provide | 1185 |
| materials to
the improvement. | 1186 |
| (3) Notwithstanding division (A)(2) of this section, if
there | 1193 |
| is a valid and recorded lien with an effective date
described in | 1194 |
| division (A)(1) of this section which has not been
released at the | 1195 |
| time a lien is filed by a laborer after the
recording of the | 1196 |
| notice of commencement or if a valid lien
against the improvement | 1197 |
| pursuant to division (A)(1) of this
section is filed subsequent to | 1198 |
| the filing of a laborer's lien,
the lien of the laborer is | 1199 |
| effective from the date the first
visible labor or work was | 1200 |
| performed or materials were furnished
by the original contractor, | 1201 |
subcontractor, materialmanmaterial supplier, or
laborer at the | 1202 |
| site of the improvement. | 1203 |
| (B)(1) Except for the liens of laborers as provided in | 1204 |
|
division (B)(2) of this section, a lien securing the claim of a | 1205 |
|
claimant who has performed labor or work or furnished materials | 1206 |
|
both prior to and after the recording of the notice of | 1207 |
|
commencement pursuant to section 1311.04 of the Revised Code has | 1208 |
|
two effective dates. That portion of the lien which arises from | 1209 |
|
labor or work performed or materials furnished prior to the
filing | 1210 |
| of the notice of commencement has the effective date
described in | 1211 |
| division (A)(1) of this section and that portion of
the lien which | 1212 |
| arises from labor or work performed or materials
furnished on or | 1213 |
| after the filing of the notice of commencement
has the effective | 1214 |
| date described in division (A)(2) of this
section. Any payment | 1215 |
| received by the lien claimant both before
and after the filing of | 1216 |
| a lien shall be applied first to the
labor or work performed or | 1217 |
| materials furnished prior to the
filing of the notice of | 1218 |
| commencement, and then to labor or work
performed or materials | 1219 |
| furnished on and after the filing of the
notice of commencement. | 1220 |
| (E)(1) Except as provided in division (E)(2) of this
section, | 1246 |
| liens which have an effective date described in division
(A)(1) of | 1247 |
| this section shall be preferred to the extent of the
value of the | 1248 |
| labor or work performed or materials furnished prior
to the | 1249 |
| recording of the notice of commencement, to all other
titles, | 1250 |
| liens, or encumbrances which may attach to or upon the
improvement | 1251 |
| or to or upon the land upon which it is situated,
which either | 1252 |
| shall be given or recorded subsequent to the
effective date of the | 1253 |
| liens described in division (A)(1) of this
section. | 1254 |
| Sec. 1311.14. (A) Except as provided in this section, the | 1277 |
| lien
of a mortgage given in whole or in part to improve real | 1278 |
| estate,
or to pay off prior encumbrances thereon, or both, the | 1279 |
| proceeds
of which are actually used in the improvement in the | 1280 |
| manner
contemplated in sections 1311.02 and 1311.03 of the Revised | 1281 |
| Code,
or to pay off prior encumbrances, or both, and which | 1282 |
| mortgage
contains therein the correct name and address of the | 1283 |
| mortgagee,
together with a covenant between the mortgagor and | 1284 |
| mortgagee
authorizing the mortgagee to do all things provided to | 1285 |
| be done by
the mortgagee under this section, shall be prior to all | 1286 |
mechanic's, materialmen'smaterial supplier's, and similar
liens | 1287 |
| and all liens provided for in this chapter that are filed for | 1288 |
| record
after the
improvement mortgage is filed for record, to the | 1289 |
| extent that the
proceeds thereof are used and applied for the | 1290 |
| purposes of and
pursuant to this section. Such mortgage is a lien | 1291 |
| on the
premises therein described from the time it is filed for | 1292 |
| record
for the full amount that is ultimately and actually paid | 1293 |
| out
under the mortgage, regardless of the time when the money | 1294 |
| secured
thereby is advanced. | 1295 |
Any laborer or materialmanmaterial supplier who claims or at | 1296 |
| any
time can claim a right of lien on the premises for any labor | 1297 |
| or work
performed or to be performed or for material furnished or | 1298 |
| to be
furnished for the improvement, may serve a written notice on | 1299 |
| the
mortgagee, which notice shall show the kind and nature of the | 1300 |
|
labor or work performed or to be performed, or both, and of the | 1301 |
|
material furnished or to be furnished, or both, and the amount | 1302 |
|
claimed or to be claimed therefor, and a description of the | 1303 |
|
premises upon which the labor or work has been or is to be | 1304 |
|
performed or to which the material has been or is to be
furnished, | 1305 |
| and the amount claimed therefor. | 1306 |
| (B) The mortgagee need not pay out any of the mortgage fund | 1307 |
| for
fifteen days after filing the mortgage. At the end of such | 1308 |
period, hethe mortgagee may refuse to go forward with the loan
or | 1309 |
| to pay out
the fund, in which case, if no funds have been | 1310 |
advanced, hethe
mortgagee shall make, execute, and deliver to the | 1311 |
| mortgagor, or to the
county
recorder to be recorded, a proper | 1312 |
| release of the mortgage, but if
the mortgagee elects to complete | 1313 |
the loan, hethe mortgagee
shall, in order to obtain the priority | 1314 |
| set forth in this section, distribute
the
mortgage fund in the | 1315 |
| following order: | 1316 |
(D)(4) The mortgagee shall pay on the order of the owner, the | 1329 |
accounts of the materialmenmaterial suppliers and laborers who | 1330 |
|
have filed with the mortgagee a written notice as provided in this | 1331 |
| section,
the
amounts due for labor or work then performed and | 1332 |
| material then
furnished for the improvement; and shall retain out | 1333 |
| of the
mortgage fund such money to become due as is shown by the | 1334 |
| notice
served and shall hold such money, and shall pay on the | 1335 |
| order of
the owner, the amounts due to such persons who have | 1336 |
served such
notices, if the mortgagee has sufficient money in his | 1337 |
| the
mortgagee's hands to do
so and also to complete the | 1338 |
improvement; but if the mortgagee has funds in
histhe mortgagee's | 1339 |
hands insufficient to pay all such laborers
and materialmen | 1340 |
material suppliers in full and to complete the
improvement, hethe | 1341 |
| mortgagee shall
retain sufficient money to complete the | 1342 |
| improvement and to
distribute the balance pro rata among the | 1343 |
materialmenmaterial suppliers and
laborers who have filed such | 1344 |
| notices. | 1345 |
| All payments and distributions made by the mortgagee as | 1364 |
|
provided in this section shall be considered the same as if paid | 1365 |
|
to the owner, part owner, lessee, or mortgagor under the
mortgage, | 1366 |
| and as if paid to the original contractor, and when
paid pursuant | 1367 |
| to this section there is no further liability on
the part of the | 1368 |
| mortgagee. This chapter does not require the
mortgagee to | 1369 |
| ascertain by affidavit or otherwise the respective
claims of | 1370 |
original contractors, subcontractors, laborers, or
materialmen | 1371 |
| material suppliers, or to determine priorities among lien | 1372 |
| claimants. | 1373 |
(C) Any original contractor, subcontractor, materialman | 1378 |
| material supplier, or laborer may at any time serve on any | 1379 |
| mortgagee a
written request
demanding to know the exact balance of | 1380 |
the mortgage fund in histhe
mortgagee's possession and the | 1381 |
| aggregate amount included in the notices
filed
with the mortgagee | 1382 |
| at the time of the receipt of such notice. The mortgagee
shall | 1383 |
| correctly inform the person serving the
notice of the exact | 1384 |
| balance and the aggregate amount included in
the notices filed. If | 1385 |
| the mortgagee fails to inform the original
contractor, | 1386 |
subcontractor, materialmanmaterial supplier, or
laborer serving | 1387 |
| the
written demand of the exact balance of the mortgage fund in | 1388 |
histhe
mortgagee's possession at the time of the receipt of the | 1389 |
| notice, the
mortgagee is liable to the original contractor, | 1390 |
subcontractor,
materialmanmaterial supplier, and laborer making | 1391 |
such demand, each
time hethe mortgagee fails to comply with such | 1392 |
| demand, in the
sum of one hundred dollars. | 1393 |
| This section, as to mortgages contemplated by this section, | 1394 |
|
controls over all other sections of the Revised Code relating to | 1395 |
mechanic's, materialmen'smaterial supplier's, contractor's, | 1396 |
|
subcontractor's, laborer's, and all liens that can be had under | 1397 |
| this chapter,
and shall be liberally construed in favor of such | 1398 |
| mortgagees, a
substantial compliance by such mortgagees being | 1399 |
| sufficient. | 1400 |
| Sec. 1311.15. (A) The lien of a subcontractor is superior
to | 1401 |
| any already taken or to be taken by the original contractor in | 1402 |
|
respect of the same labor, work, or material, and the liens of | 1403 |
laborers, materialmenmaterial suppliers, and subcontractors to an | 1404 |
|
original contractor or subcontractor, are superior to any lien | 1405 |
| already
taken or to be taken by such original contractor or | 1406 |
| subcontractor
indebted to them in respect of such labor, work, or | 1407 |
| material. An
assignment or transfer by the original contractor or | 1408 |
subcontractor, of histhe contract with the owner or original | 1409 |
|
contractor, as well as all proceedings in attachment, or | 1410 |
|
otherwise, against the original contractor or subcontractor, to | 1411 |
subject or encumber histhe original contractor's or | 1412 |
|
subcontractor's interest in such contract, is subject to
the | 1413 |
claims of every laborer, subcontractor, or materialmanmaterial | 1414 |
| supplier who
performs any labor or work or furnishes any material | 1415 |
| in
furtherance of any improvement in accordance with this chapter. | 1416 |
| (B)(1) An owner, part owner, lessee, or public authority
may | 1417 |
pay directly the claim of any subcontractor or materialman | 1418 |
| material supplier
who serves a notice of furnishing pursuant to | 1419 |
| section 1311.05 or
1311.261 of the Revised Code, or the claim of | 1420 |
| any laborer. If
the owner, part owner, lessee, or public authority | 1421 |
pays such
claim, hethe owner, part owner, lessee, or public | 1422 |
| authority has
a right to a setoff or credit, in an amount equal
to | 1423 |
| the amount paid, against the original contractor or principal | 1424 |
contractor
who employed the subcontractor, materialmanmaterial | 1425 |
| supplier, or
laborer paid by the owner, part owner, lessee, or | 1426 |
| public
authority under division (B)(1) of this section. | 1427 |
| (2) A principal contractor, an original contractor, or a | 1428 |
|
subcontractor may pay directly the claim of any subcontractor or | 1429 |
materialmanmaterial supplier who serves a notice of furnishing | 1430 |
|
pursuant to section
1311.05 or 1311.261 of the Revised Code, or | 1431 |
the claim of any
laborer. If theA principal contractor, original | 1432 |
contractor, or
subcontractor who pays such a claim, he has a right | 1433 |
| to a
setoff or
credit, in an amount equal to the amount paid, | 1434 |
| against the
subcontractor who employed the subcontractor, | 1435 |
materialmanmaterial supplier, or laborer paid by the principal | 1436 |
| contractor, original
contractor, or subcontractor under division | 1437 |
| (B)(2) of this section. | 1438 |
| (A) "Public improvement" means any construction, | 1446 |
|
reconstruction, improvement, enlargement, alteration, demolition, | 1447 |
|
or repair of a building, highway, drainage system, water system, | 1448 |
|
road, street, alley, sewer, ditch, sewage disposal plant, water | 1449 |
|
works, and any other structure or work of any nature by a public | 1450 |
|
authority. | 1451 |
| (B) "Public authority" includes the state, and a county, | 1452 |
|
township, municipal corporation, school district, or other | 1453 |
|
political subdivision of the state, and any public agency, | 1454 |
|
authority, board, commission, instrumentality, or special
district | 1455 |
|
of or in the state or a county, township, municipal
corporation, | 1456 |
|
school district, or other political subdivision of
the state, and | 1457 |
|
any officer or agent thereof. | 1458 |
Sec. 1311.26. Any subcontractor, materialmanmaterial | 1484 |
| supplier, or
laborer who is performing or has performed labor or | 1485 |
| work or is furnishing
or has furnished material for any public | 1486 |
| improvement provided for
in a contract between the public | 1487 |
| authority and a principal
contractor, and under a contract between | 1488 |
the subcontractor,
materialmanmaterial supplier, or laborer and a | 1489 |
| principal
contractor or
subcontractor, at any time, not to exceed | 1490 |
| one hundred twenty days
from the performance of the last labor or | 1491 |
| work or furnishing of
the last material, may serve the public | 1492 |
| authority an affidavit
stating the amount due and unpaid for the | 1493 |
| labor and work
performed and material furnished, when the last of | 1494 |
| the labor or
work was performed and when the last of the material | 1495 |
| was
furnished with all credits and setoffs thereon, and the | 1496 |
|
post-office address of the claimant. If a claimant serves an | 1497 |
affidavit under this section, hethe claimant shall serve the | 1498 |
|
affidavit to the
representative of the public authority named in | 1499 |
| the notice of
commencement. | 1500 |
Sec. 1311.261. (A)(1) Every subcontractor and
materialman | 1507 |
material supplier who wishes to exercise
histhe subcontractor's | 1508 |
|
or
material supplier's rights under sections 1311.25 to
1311.32 of | 1509 |
| the
Revised Code regarding claims for labor or work
performed or | 1510 |
|
materials furnished in furtherance of a public
improvement shall | 1511 |
|
serve a notice of furnishing, in accordance
with division (B) of | 1512 |
|
this section, on the principal contractor
whose contract with the | 1513 |
|
public authority is the contract under
which the subcontractor or | 1514 |
materialmanmaterial supplier is
performing labor or
work or | 1515 |
|
furnishing materials within twenty-one days after the
date that | 1516 |
the subcontractor or
materialmanmaterial supplier first
performed | 1517 |
|
labor
or work or furnished materials on the site of the public | 1518 |
improvement, except that no subcontractor or
materialmanmaterial | 1519 |
| supplier who is
in direct privity of contract with the
principal | 1520 |
| contractor need
provide the notice. | 1521 |
(2) A subcontractor or
materialmanmaterial supplier may | 1522 |
| serve
the
principal contractor with a notice of furnishing | 1523 |
| pursuant to
this section
more than twenty-one days after the | 1524 |
subcontractor or
materialmanmaterial supplier
first performed | 1525 |
| labor or work or
furnished materials on the site
of the public | 1526 |
improvement. If a
subcontractor or
materialmanmaterial supplier | 1527 |
serves the notice, the
subcontractor or
materialmanmaterial | 1528 |
| supplier shall have
the rights
of sections 1311.25 to 1311.32 of | 1529 |
| the Revised Code
with regard to
only amounts owed for labor and | 1530 |
| work performed and
materials
furnished during and after the | 1531 |
| twenty-one days
immediately
preceding service of the notice of | 1532 |
| furnishing. | 1533 |
| The public authority shall place any detained funds in an | 1590 |
|
escrow account as provided for under section 153.63 of the
Revised | 1591 |
| Code, to be released at the times, in the amounts, and to
the | 1592 |
| persons ordered by a court of competent jurisdiction or by | 1593 |
|
agreement of the principal contractor and the subcontractor, | 1594 |
materialmanmaterial supplier, or laborer who filed the affidavit | 1595 |
|
provided for in section 1311.26 of the Revised Code or upon a | 1596 |
| failure to
commence suit as provided in section 1311.311 of the | 1597 |
| Revised Code. | 1598 |
Sec. 1311.29. A subcontractor, materialmanmaterial | 1599 |
| supplier,
laborer, or person who serves the affidavit pursuant to | 1600 |
| section 1311.26 of
the Revised Code, in order to notify other | 1601 |
subcontractors,
materialmenmaterial suppliers, and laborers, | 1602 |
| within thirty days thereafter, shall
file for record a copy of the | 1603 |
| affidavit with the county recorder
of the county where the public | 1604 |
| improvement is situated or with
the county recorder of each of the | 1605 |
| counties where the public
improvement is situated if the public | 1606 |
| improvement is situated in
more than one county. The filing for | 1607 |
| record of the affidavit
with the county recorders gives such | 1608 |
subcontractor, materialmanmaterial supplier,
laborer, or person | 1609 |
| filing the affidavit as provided in section
1311.26 of the Revised | 1610 |
| Code, a preference, as to payments
subsequently due from the | 1611 |
public authority, over such of histhe
other subcontractors, | 1612 |
materialmenmaterial suppliers, and laborers
who have failed, | 1613 |
| prior to the date any such payment is due, to file the
affidavit | 1614 |
|
provided for in section 1311.26 of the Revised Code, and to file | 1615 |
|
for record the copy thereof with the county recorders as provided | 1616 |
|
in this section. On detained funds, such claimants have no | 1617 |
|
priority among themselves, but payment thereon shall be made to | 1618 |
|
them in amounts prorated according to the amount of the | 1619 |
|
then-existing valid claim of each. The failure of any claimant
to | 1620 |
| file for record a copy of the affidavit with the county
recorders | 1621 |
does not affect the validity of histhe claimant's
amount claimed | 1622 |
with respect to persons other than such of histhe
claimant's | 1623 |
other subcontractors,
materialmenmaterial suppliers, and laborers | 1624 |
| who have filed for
record copies of
their affidavits with the | 1625 |
| county recorders, and, against detained
funds, such claimants who | 1626 |
| have failed to make such filing for
record with the county | 1627 |
| recorders have no priority among
themselves, but, after all claims | 1628 |
| having preference over theirs
have been paid, payment shall be | 1629 |
| made to them in amounts prorated
according to the amount of the | 1630 |
| then-existing valid claim of each. | 1631 |
| Sec. 1311.32. The duty to pay to claimants the amounts and | 1638 |
|
in the order of preference, as provided in sections 1311.29 and | 1639 |
|
1311.31 of the Revised Code, may be enforced by an action in the | 1640 |
court of common pleas or the subcontractor, materialmanmaterial | 1641 |
| supplier, or laborer may, when the amounts are due, recover | 1642 |
|
through the public
authority in the court of common pleas the | 1643 |
whole or a pro rata
amount of histhe subcontractor's, material | 1644 |
| supplier's, or
laborer's claim or estimate, not exceeding in any | 1645 |
| case the balance due to
the principal contractor. Either of these | 1646 |
| actions
shall be brought in the county in which the public | 1647 |
| property
involved is situated, except that actions against state | 1648 |
| officers
shall be brought only in Franklin county. The court shall | 1649 |
|
resolve all disputes concerning whether the affidavit filed | 1650 |
|
pursuant to section 1311.26 of the Revised Code has been
perfected | 1651 |
| and concerning priorities, that may arise from
enforcement of the | 1652 |
| affidavit or the bond that secures the
affidavit, pursuant to | 1653 |
| section 1311.311 of the Revised Code. | 1654 |
| If the contractor fails to comply with division (A)(1) of | 1676 |
|
this section, the contractor shall pay the subcontractor or | 1677 |
materialmanmaterial supplier, in addition to the payment due, | 1678 |
|
interest in
the
amount of eighteen per cent per annum of the | 1679 |
| payment due,
beginning on the eleventh day following the receipt | 1680 |
| of payment
from the owner and ending on the date of full payment | 1681 |
| of the
payment due plus interest to the subcontractor or | 1682 |
materialmanmaterial supplier. | 1683 |
(2) If a lower tier subcontractor or lower tier
materialman | 1684 |
| material supplier submits an application or request
for payment or | 1685 |
an
invoice for materials to a subcontractor, materialmanmaterial | 1686 |
|
supplier, or other
lower tier subcontractor or lower tier | 1687 |
materialmanmaterial
supplier in sufficient
time to allow the | 1688 |
subcontractor, materialmanmaterial supplier,
or other lower tier | 1689 |
subcontractor or lower tier materialmanmaterial supplier to | 1690 |
include the
application, request, or invoice in histhe | 1691 |
| subcontractor's,
material supplier's, or other lower tier | 1692 |
| subcontractor's or lower tier
material supplier's own pay request | 1693 |
submitted
to a contractor, other subcontractor, materialman | 1694 |
| material
supplier, lower tier
subcontractor, or lower tier | 1695 |
materialmanmaterial supplier, the
subcontractor,
materialman | 1696 |
| material supplier, or other lower tier
subcontractor or lower tier | 1697 |
materialmanmaterial supplier, within ten calendar days after | 1698 |
|
receipt of payment
from the contractor, other subcontractor, | 1699 |
materialmanmaterial
supplier, lower tier
subcontractor, or lower | 1700 |
tier materialmanmaterial supplier for
improvements to
property, | 1701 |
| shall pay to the: | 1702 |
The subcontractor, materialmanmaterial supplier, lower tier | 1711 |
subcontractor,
or lower tier materialmanmaterial supplier may | 1712 |
| reduce the
amount paid by any
retainage provision contained in the | 1713 |
| contract, invoice, or
purchase order between the subcontractor, | 1714 |
materialmanmaterial
supplier, lower tier
subcontractor, or lower | 1715 |
tier materialmanmaterial supplier and
the lower tier | 1716 |
subcontractor or lower tier materialmanmaterial supplier, and
may | 1717 |
| withhold amounts
that may be necessary to resolve disputed liens | 1718 |
| or claims
involving the work or labor performed or material | 1719 |
| furnished by
the lower tier subcontractor or lower tier | 1720 |
materialmanmaterial
supplier. | 1721 |
If the subcontractor, materialmanmaterial supplier, lower | 1722 |
tier
subcontractor, or lower tier materialmanmaterial supplier | 1723 |
|
fails to comply with
division (A)(2) of this section, the | 1724 |
subcontractor, materialmanmaterial supplier,
lower tier | 1725 |
subcontractor, or lower tier materialmanmaterial
supplier shall | 1726 |
pay the
lower tier subcontractor or lower tier materialman | 1727 |
| material
supplier, in addition
to the payment due, interest in the | 1728 |
| amount of eighteen per cent
per annum of the payment due, | 1729 |
| beginning on the eleventh day
following the receipt of payment | 1730 |
from the contractor, other
subcontractor, materialmanmaterial | 1731 |
supplier, lower tier
subcontractor, or lower
tier materialman | 1732 |
| material supplier and ending on the date of
full payment of the | 1733 |
|
payment due plus interest to the lower tier subcontractor or
lower | 1734 |
tier materialmanmaterial supplier. | 1735 |
| (3) If a contractor receives any final retainage from the | 1736 |
|
owner for improvements to property, the contractor shall pay from | 1737 |
that retainage each subcontractor and materialman hismaterial | 1738 |
|
supplier the subcontractor's or material supplier's proportion
of | 1739 |
| the retainage, within ten calendar days after receipt of the | 1740 |
|
retainage from the owner, or within the time period provided in a | 1741 |
|
contract, invoice, or purchase order between the contractor and | 1742 |
the subcontractor or materialmanmaterial supplier, whichever
time | 1743 |
| period is
shorter, provided that the contractor has determined | 1744 |
that the
subcontractor's or materialman'smaterial supplier's | 1745 |
| work,
labor, and materials have
been satisfactorily performed or | 1746 |
| furnished and that the owner has
approved the subcontractor's or | 1747 |
materialman'smaterial
supplier's work, labor, and
materials. | 1748 |
If the contractor fails to pay a subcontractor or
materialman | 1749 |
| material supplier within the appropriate time
period, the | 1750 |
contractor
shall pay the subcontractor or materialmanmaterial | 1751 |
| supplier,
in addition to the
retainage due, interest in the amount | 1752 |
| of eighteen per cent per
annum of the retainage due, beginning on | 1753 |
| the eleventh day
following the receipt of the retainage from the | 1754 |
| owner and ending
on the date of full payment of the retainage due | 1755 |
plus interest to
the subcontractor or materialmanmaterial | 1756 |
| supplier. | 1757 |
(4) If a subcontractor, materialmanmaterial supplier, lower | 1758 |
tier
subcontractor, or lower tier materialmanmaterial supplier | 1759 |
|
receives any final
retainage from the contractor or other | 1760 |
subcontractor, lower tier
subcontractor, or lower tier materialman | 1761 |
| material supplier for
improvements to
property, the subcontractor, | 1762 |
materialmanmaterial supplier,
lower tier
subcontractor, or lower | 1763 |
tier materialmanmaterial supplier
shall pay from that
retainage | 1764 |
each lower tier subcontractor or lower tier materialman
histhe | 1765 |
| lower tier subcontractor's or lower tier material
supplier's | 1766 |
| proportion of the retainage, within ten calendar days after | 1767 |
|
receipt of payment from the contractor or other subcontractor, | 1768 |
lower tier subcontractor, or lower tier materialmanmaterial | 1769 |
|
supplier, or within
the time period provided in a contract, | 1770 |
invoice, or purchase
order between the subcontractor, materialman | 1771 |
| material supplier,
lower tier
subcontractor, or lower tier | 1772 |
materialmanmaterial supplier and
the lower tier
subcontractor or | 1773 |
lower tier materialmanmaterial supplier,
whichever time period is | 1774 |
shorter, provided that the subcontractor, materialmanmaterial | 1775 |
supplier, lower tier
subcontractor, or lower tier materialman | 1776 |
| material supplier has
determined that the
lower tier | 1777 |
subcontractor's or lower tier materialman'smaterial
supplier's | 1778 |
| work,
labor, and materials have been satisfactorily performed or | 1779 |
|
furnished and that the owner has approved the lower tier | 1780 |
subcontractor's or lower tier materialman'smaterial supplier's | 1781 |
|
work, labor, and
materials. | 1782 |
If the subcontractor, materialmanmaterial supplier, lower | 1783 |
tier
subcontractor, or lower tier materialmanmaterial supplier | 1784 |
|
fails to pay the lower
tier subcontractor or lower tier | 1785 |
materialmanmaterial supplier
within the
appropriate time period, | 1786 |
the subcontractor, materialmanmaterial
supplier, lower
tier | 1787 |
subcontractor, or lower tier materialmanmaterial supplier
shall | 1788 |
pay the lower
tier subcontractor or lower tier materialman | 1789 |
| material supplier,
in addition to the
retainage due, interest in | 1790 |
| the amount of eighteen per cent per
annum of the retainage due, | 1791 |
| beginning on the eleventh day
following the receipt of the | 1792 |
| retainage from the contractor or
other subcontractor, lower tier | 1793 |
subcontractor, or lower tier
materialmanmaterial supplier and | 1794 |
| ending on the date of full
payment of the
retainage due plus | 1795 |
interest to the lower tier subcontractor or
lower tier materialman | 1796 |
| material supplier. | 1797 |
| If the contractor, subcontractor, or lower tier
subcontractor | 1803 |
| fails to pay the laborer wages due within the
appropriate time | 1804 |
| period, the contractor, subcontractor, or lower
tier subcontractor | 1805 |
| shall pay the laborer, in addition to the
wages due, interest in | 1806 |
| the amount of eighteen per cent per annum
of the wages due, | 1807 |
| beginning on the eleventh day following the
receipt of payment | 1808 |
| from the owner, contractor, subcontractor, or
lower tier | 1809 |
| subcontractor and ending on the date of full payment
of the wages | 1810 |
| due plus interest to the laborer. | 1811 |
(B)(1) If a contractor, subcontractor, materialmanmaterial | 1812 |
supplier, lower
tier subcontractor, or lower tier materialman | 1813 |
| material supplier
has not made
payment in compliance with division | 1814 |
| (A)(1), (2), (3), (4), or (5)
of this section within thirty days | 1815 |
after payment is due, a
subcontractor, materialmanmaterial | 1816 |
supplier, lower tier
subcontractor, lower tier
materialman | 1817 |
| material supplier, or laborer may file a civil
action to recover | 1818 |
| the
amount due plus the interest provided in those divisions. If | 1819 |
| the
court finds in the civil action that a contractor, | 1820 |
subcontractor,
materialmanmaterial supplier, lower tier | 1821 |
subcontractor, or
lower tier materialmanmaterial supplier
has not | 1822 |
| made payment in compliance with those divisions, the
court shall | 1823 |
| award the interest specified in those divisions, in
addition to | 1824 |
| the amount due. Except as provided in division
(B)(3) of this | 1825 |
| section, the court shall award the prevailing
party reasonable | 1826 |
| attorney fees and court costs. | 1827 |
| (2) This section shall not be construed as impairing or | 1848 |
|
affecting, in any way, the terms and conditions of any contract, | 1849 |
|
invoice, purchase order, or any other agreement between a | 1850 |
contractor and a subcontractor or a materialmanmaterial
supplier | 1851 |
| or between a
subcontractor and another subcontractor, a | 1852 |
materialmanmaterial
supplier, a lower
tier subcontractor, or a | 1853 |
lower tier materialmanmaterial supplier, except that if
such | 1854 |
| terms and conditions contain time periods which are longer
than | 1855 |
| any of the time periods specified in divisions (A)(1), (2),
(3), | 1856 |
| (4), and (5) of this section or interest at a percentage
less than | 1857 |
| the interest stated in those divisions, then the
provisions of | 1858 |
| this section shall prevail over such terms and
conditions. | 1859 |
| (6) "Owner" includes the state, and a county, township, | 1894 |
|
municipal corporation, school district, or other political | 1895 |
|
subdivision of the state, and any public agency, authority,
board, | 1896 |
| commission, instrumentality, or special district of or in
the | 1897 |
| state or a county, township, municipal corporation, school | 1898 |
|
district, or other political subdivision of the state, and any | 1899 |
|
officer or agent thereof and relates to all the interests either | 1900 |
|
legal or equitable, which a person may have in the real estate | 1901 |
|
upon which improvements are made, including interests held by any | 1902 |
|
person under contracts of purchase, whether in writing or | 1903 |
|
otherwise. | 1904 |
| (1) For
compensation, directs, supervises, or has | 1913 |
|
responsibility for the means,
method, and manner of construction, | 1914 |
improvement,
renovation, repair, testing, or maintenance on a | 1915 |
| construction project with respect to one or more trades
and
who
| 1916 |
|
offers, identifies, advertises, or otherwise
holds out or | 1917 |
|
represents that
the
individual or business entity is permitted or | 1918 |
|
qualified to
perform, direct, supervise, or have responsibility | 1919 |
|
for the means, method,
and
manner of
construction,
improvement, | 1920 |
| renovation, repair, or
maintenance with respect to one or more | 1921 |
| trades on a construction project; | 1922 |
| (D) "Tradesperson" means an individual employed by a | 1930 |
contractor who,
for
compensation, engages in
construction, | 1931 |
| improvement, renovation,
repair, or maintenance of
buildings or | 1932 |
| structures without assuming
responsibility for the
means, method, | 1933 |
| or manner of that
construction, improvement,
renovation, repair, | 1934 |
| or maintenance. | 1935 |
| (E) Keep a record containing the name, address, the date
on | 1983 |
|
which the board issues or renews a
license
to, and the license | 1984 |
|
number of, every
heating,
ventilating, and air conditioning | 1985 |
|
contractor, refrigeration
contractor, electrical contractor, | 1986 |
|
plumbing contractor, and
hydronics contractor issued a license | 1987 |
|
pursuant
to this chapter; | 1988 |
| Sec. 4740.06. (A) Any individual who applies for
a
license | 2076 |
|
shall file a written
application with
the appropriate
section of | 2077 |
|
the Ohio construction industry
licensing board,
accompanied with | 2078 |
|
the application fee as determined pursuant to
section
4740.09 of | 2079 |
|
the Revised Code. The individual shall file
the
application not | 2080 |
| more than sixty
days
nor less than
thirty days prior to the date | 2081 |
| of the
examination.
The application
shall be on the form the | 2082 |
| section prescribes and verified by the
applicant's
oath. The | 2083 |
| applicant shall provide
information satisfactory to
the
section | 2084 |
| showing that
the applicant meets the
requirements of division (B) | 2085 |
| of this
section. | 2086 |
| (C) When an applicant for licensure as a contractor in a | 2112 |
| licensed trade meets the qualifications set
forth in
division (B) | 2113 |
| of this section and passes the required examination,
the | 2114 |
|
appropriate section of the
board, within ninety days after the | 2115 |
|
application was filed, shall authorize the
administrative section | 2116 |
| of the board
to
license the applicant for
the
type of contractor's | 2117 |
| license for which
the applicant
qualifies. A section of the board | 2118 |
| may withdraw its
authorization
to
the administrative section for | 2119 |
| issuance of a license for
good
cause shown, on the condition that | 2120 |
| notice of that
withdrawal is
given prior to the administrative | 2121 |
| section's
issuance of the
license. | 2122 |
(D) Each license expires one year
after the date of issue. | 2123 |
| All licenses a contractor holds pursuant to this chapter shall | 2124 |
| expire annually on the same date, which shall be the expiration | 2125 |
| date of the original license the contractor holds. An
individual | 2126 |
|
holding a valid,
unexpired license may
renew
the license, without | 2127 |
| reexamination,
by submitting an application
to the
appropriate | 2128 |
| section of the board not more than
ninety calendar
days before the | 2129 |
|
expiration of the license, along with the renewal fee the section | 2130 |
| requires and proof of compliance with
the applicable continuing | 2131 |
|
education requirements. The applicant shall provide information in | 2132 |
| the renewal application
satisfactory to demonstrate to the | 2133 |
| appropriate section
that
the applicant continues to meet the | 2134 |
| requirements of
division (B)
of this
section. | 2135 |
| Upon application and within one calendar year after a license | 2136 |
| has expired, a section may waive any of the
requirements for | 2137 |
| renewal of a license upon finding that an
applicant substantially | 2138 |
| meets the renewal requirements or
that
failure to timely apply for | 2139 |
| renewal is due to excusable
neglect.
A section that
waives | 2140 |
|
requirements for renewal of a license may impose
conditions upon
| 2141 |
| the licensee and assess a late filing
fee of not more than double | 2142 |
|
the usual renewal fee. An applicant shall satisfy any condition | 2143 |
| the section imposes before a license is reissued. | 2144 |
| (B) Any individual may request, at the time of applying
for
a
| 2162 |
| license or at any time thereafter,
that the individual's
license | 2163 |
| be
assigned to
a business
entity with whom the individual
is | 2164 |
| associated as a full-time
officer,
proprietor, partner, or | 2165 |
|
employee. If the individual is
issued or
holds a license and
meets | 2166 |
| the
requirements of
this section for the assignment of
the | 2167 |
|
license to a business entity, the
administrative section shall | 2168 |
|
assign the license to and issue
a license in the
name of
the | 2169 |
|
business entity. The license
assigned and
issued to a business | 2170 |
|
entity under this division shall state the
name and position of | 2171 |
|
the individual who assigned the
license to the business entity. | 2172 |
| (D)(1) If an individual who assigned a
license to a
business | 2179 |
| entity
ceases to be associated with the business entity
for any | 2180 |
| reason, including the death of the
individual,
the individual or | 2181 |
| business entity immediately
shall
notify the appropriate section | 2182 |
| of the board of the date on which
the individual ceased to be | 2183 |
| associated
with the business entity. A
license assigned to
a | 2184 |
|
business entity is invalid ninety calendar days after
the
date on | 2185 |
| which the individual who assigned the license
ceases
to be | 2186 |
| associated with the business entity or at an earlier time to which | 2187 |
| the business entity and the individual agree. | 2188 |
| Sec. 4740.08. When a written reciprocity agreement between | 2220 |
| the states exists, and an individual who is registered, licensed, | 2221 |
| or certified in another state applies to the appropriate section | 2222 |
|
of
the Ohio construction industry licensing board submits a copy | 2223 |
| of the reciprocity agreement, and pays
the licensure
fee | 2224 |
| determined pursuant to section 4740.09 of
the Revised Code, the | 2225 |
| appropriate
section
of the
board shall authorize the | 2226 |
| administrative section
to
issue, without examination, a
license | 2227 |
| to that
individual
if the appropriate section of the
board | 2228 |
|
determines, pursuant to rules it adopts, that the
requirements for | 2229 |
|
registration, licensure, or certification under
the laws of the | 2230 |
|
other state are
substantially equal to the
requirements for | 2231 |
| licensure in this state and
that
the other state extends similar | 2232 |
| reciprocity to persons
licensed under this chapter.
The | 2233 |
| appropriate
section of the board
may withdraw its
authorization to | 2234 |
| the administrative section for
issuance of a
license for good | 2235 |
| cause prior to the
administrative
section's issuance of the | 2236 |
| license. | 2237 |
| Sec. 4740.15. If a check or other draft instrument used to | 2265 |
| pay any fee required by this chapter is returned as unpaid for | 2266 |
| insufficient funds or any other reason, the board secretary shall | 2267 |
| notify the licensee that the check or other draft instrument was | 2268 |
| returned and that the licensee's license will be canceled unless | 2269 |
| the licensee, within fifteen days after the mailing of the notice, | 2270 |
| submits the fee and a penalty in an amount the board establishes | 2271 |
| by rules it adopts pursuant to Chapter 119. of the Revised Code. | 2272 |
| If the licensee does not submit the fee and the penalty within the | 2273 |
| time specified, or if any check or other draft instrument used to | 2274 |
| pay either the fee or the penalty is returned to the board | 2275 |
| secretary for insufficient funds or any other reason, the license | 2276 |
| shall be canceled immediately without a hearing and the licensee | 2277 |
| shall cease activity as a licensee under this chapter until both | 2278 |
| the fee and the penalty have been paid. | 2279 |
| Sec. 5309.57. Whenever any attested account to obtain a | 2280 |
mechanic's,
materialman'smaterial supplier's, or laborer's lien | 2281 |
| is filed in
the office of the county recorder
by which a lien is | 2282 |
| sought to be obtained upon any registered land, the county | 2283 |
|
recorder shall forthwith make notation and enter a memorial | 2284 |
| thereof upon the
folium of the register where the last certificate | 2285 |
| of title to the land is
registered, stating the name of the | 2286 |
| claimant, amount claimed, volume and
folium
of the record where | 2287 |
| recorded, and the exact time when said memorial was
entered. No | 2288 |
| lien shall attach to said land until such notation is entered by | 2289 |
|
the recorder. | 2290 |
| (1) A contract performance bond in an amount equal to one | 2299 |
|
hundred per cent of the estimated cost of the work, conditioned, | 2300 |
|
among other things, that the contractor will perform the work
upon | 2301 |
| the terms proposed, within the time prescribed, and in
accordance | 2302 |
| with the plans and specifications, will indemnify the
state | 2303 |
| against any damage that may result from any failure of the | 2304 |
|
contractor to so perform, and, further, in case of a grade | 2305 |
|
separation will indemnify any railroad company involved against | 2306 |
|
any damage that may result by reason of the negligence of the | 2307 |
|
contractor in making the improvement. | 2308 |
| (B) In no case is the state liable for damages sustained
in | 2314 |
| the construction of any work, improvement, or project under
this | 2315 |
| chapter and Chapters 5501., 5503., 5511., 5513., 5515.,
5516., | 2316 |
| 5517., 5519., 5521., 5523., 5527., 5528., 5529., 5531.,
5533., and | 2317 |
| 5535. of the Revised Code. | 2318 |
| (C) Any person to whom any money is due for labor or work | 2334 |
|
performed or materials furnished in connection with a work, | 2335 |
|
improvement, or project, at any time after performing the
labor or | 2336 |
| furnishing the materials but not later than ninety days
after the | 2337 |
| acceptance of the work, improvement, or project by the
director, | 2338 |
| may furnish to the sureties on the payment bond a statement
of the | 2339 |
| amount due the person. If the indebtedness is not paid in
full at | 2340 |
| the expiration of sixty days after the statement is
furnished, the | 2341 |
| person may commence an action in the person's
own name upon the | 2342 |
| bond as provided in sections 2307.06 and 2307.07 of the
Revised | 2343 |
| Code. | 2344 |
| Section 2. That existing sections 153.54, 153.57, 1311.01, | 2355 |
| 1311.011, 1311.02, 1311.021, 1311.03, 1311.04, 1311.05, 1311.12, | 2356 |
| 1311.13, 1311.14, 1311.15, 1311.25, 1311.26, 1311.261, 1311.28, | 2357 |
| 1311.29, 1311.32, 4113.61, 4740.01, 4740.04, 4740.05, 4740.06, | 2358 |
| 4740.07, 4740.08, 4740.101, 4740.12, 5309.57, and 5525.16 of the | 2359 |
| Revised Code are hereby repealed. | 2360 |