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Construction contract provisions routinely require construction to be commenced on or before a certain date, or to be completed within a certain period of time after commencement of construction. When, on what date, or with what event, does construction actually, or even lawfully, commence? That date or event may be of great significance in the determination of any claims for delay by the contractor or owner. In such considerations, does site clearing, grading, excavation, staking out the improvements, or soil testing constitute commencement of construction or is more actual, physical ?EUR??,,????'?????<?construction?EUR??,,????'?????<? required?
In Ohio, the courts have formulated a component-part test to determine if a certain act constitutes ?EUR??,,????'?????<?commencement of construction.?EUR??,,????'?????<? This test has been structured to require, in order to constitute commencement of construction, that the work: (1) form a part of the work necessary for the construction and (2) be of a nature that can afterward be considered a component part of the structure.
The Court of Appeals of Medina County, Ohio considered this specific question and held: ?EUR??,,????'?????<??EUR??,,????'?????<????Although the Rider court never articulated what constitutes ?EUR??,,????'?????<?commencement of construction,?EUR??,,????'?????<? as that concept appears in R.C. 1311.13, intermediate courts have developed a component-part test. See Huntington Natl. Bank of Columbus v. Treasurer (1983), 13 Ohio App.3d 408. The component-part test has been structured to require ?EUR??,,????'?????<?the work deemed the commencement of construction [to] form a part of the work necessary for the construction and [to] be of a nature that can afterward be considered a component part of the structure.
The purpose of the component-part test is to ensure adequate notice of potentially conflicting liens to those considering business dealings with the landowner. We believe that the component-part test is consistent with the standard announced in Rider, and significantly furthers the legislature?EUR??,,????'?????<???EUR?s goals in drafting R.C. 1311.13.
J. Norman Stark is an Attorney-at-Law, a Registered Architect, (AIA, NCARB) Registered Landscape Architect, Interior Architectural Designer, Planner and Senior Appraiser (ASA). He is admitted to practice law before the Bar of Ohio, the US District Courts of Ohio and Illinois (Central Dist.), the US Court of Appeals, and the U.S. Supreme Court. A former member of the Ohio Board of Building Standards, he has professional experience in business, construction, real property, mechanic?EUR??,,????'?????<???EUR?s liens, litigations, collections, construction, legal claims, project management and litigation expert witness support. His office is in Cleveland, Ohio.
Learn more at www.jnormanstark.com
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