This form is designed for use between Paving Contractors and Property Owners and may be executed with either a cost plus or fixed fee payment arrangement. This contract addresses such matters as change orders, work site information, warranty and insurance. This form was specifically drafted to comply with the laws of the State of Ohio.
Ohio Paving Contract for Contractor
Category:
State:
Ohio
Control #:
OH-00462-22
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Word;
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FAQ
Ohio's written contract Statute of Limitations used to be fifteen (15) years, but has now been shortened to eight (8) years. Ohio's Statute of Repose requires certain claims be asserted within ten (10) years after substantial completion of the work.
In California, the statute of repose is four years for most defects, but 10 years for latent defects (those that aren't observable right away, such as a faulty foundation). In Georgia, the statute of repose is eight years for all claims related to design or construction of the building.
A: It's not uncommon for contractors to ask for a down payment up front to secure your spot on their schedule or purchase some of the job materials in advance. Asking for more than half of the project cost up front, though, is a big red flag.I recommend tying payments to progress made during the job.
Most contractors do offer some kind of guarantee on their work, because doing so protects their interests as well as your own. While a contractor's warranty can protect you, the homeowner, from having to live with shoddy work, it also protects the contractor from having to return to fix things over and over again.
In California, contractors are required to provide warranties on work done for home and business owners for between one and 10 years. The warranties California law provides are a minimum, and longer warranties can be agreed to between the parties.
Unless there are custom or specialty orders for materials, the contractor cannot ask for more than 10% upfront before work starts.
Payment Schedule In Your Contract Before any work begins, a contractor will ask a homeowner to secure the job with a down payment. It shouldn't be more than 10-20 percent of the total cost of the job. Homeowners should never pay a contractor more than 10-20% before they've even stepped foot in their home.
You shouldn't pay more than 10 percent of the estimated contract price upfront, according to the Contractors State License Board.
Most general contractors are looking at about a 35% margin and so they need to a mark-up of 54%, or 1.54. Subs can often get a profit margin of 50%, so they need a mark-up of 100% or 2x, as the table on the right makes clear.
