To enact section 4113.63 of the Revised Code to codify the Spearin doctrine in public construction contracts.
Summary
HB605 would add a new section to the Ohio Revised Code to codify the Spearin doctrine for public construction contracts. Under the bill, when an owner provides plans and specifications for a project, the owner—or the preparer of those plans—would be deemed to have given an implied warranty that the plans are accurate, complete, free from defects, and sufficient to complete the project successfully and on time.
The bill also limits contractor and subcontractor liability when they follow the owner’s plans and specifications and damages result from defects or omissions in those plans. To avoid liability, the contractor’s reliance must be reasonable, the contractor must have adhered to the plans, and the harm must stem from a defect in the plans themselves. The bill defines when reliance is not reasonable, such as when plans are obviously inadequate, a reasonable pre-site inspection would have revealed the problem, or the contractor did not act in good faith. It further provides that certain contract clauses requiring site visits or shifting responsibility to the contractor do not eliminate the implied warranty, and any post-effective-date contract term that conflicts with the section would be void as against public policy.
Impact
If enacted, HB605 would create a statutory rule governing risk allocation in Ohio public construction contracts by shifting responsibility for defective design documents to the owner or plan preparer rather than the contractor or subcontractor, subject to the bill’s reasonableness and good-faith limits. It would affect public owners, design professionals, general contractors, and subcontractors by making the implied warranty of plans and specifications enforceable in statute and by invalidating conflicting contract language in future agreements.
Sentiment
The bill appears to be a pro-contractor, pro-accountability measure aimed at clarifying existing construction-law principles and reducing disputes over defective plans. Because the bill was only introduced and there are no recorded votes or committee transcripts provided, there is no documented opposition or support in the available record. The text itself suggests a policy preference for protecting contractors who rely on owner-furnished plans in good faith.
Contention
The main points of potential contention are the bill’s limits on contractual freedom and its allocation of risk in public projects. Owners and design professionals may object that the bill restricts their ability to shift responsibility through contract terms, while contractors and subcontractors are likely to support the statutory warranty and liability protections. Another possible dispute is the reasonableness standard, including what counts as a sufficient pre-site inspection, when plans are “clearly inadequate,” and how good faith would be judged in practice.
To amend sections 3517.12, 3517.13, and 3517.155 of the Revised Code to modify the Campaign Finance Law regarding foreign nationals and statewide initiatives and referenda and to declare an emergency.
To amend sections 3505.01 and 3505.10 of the Revised Code to modify the deadline for a political party to certify its nominees for President and Vice-President to the Secretary of State.
To amend sections 3517.12, 3517.13, and 3517.155 of the Revised Code to modify the Campaign Finance Law regarding foreign nationals and statewide initiatives and referenda and to declare an emergency.
To delay the deadline for a major political party to certify its presidential and vice presidential candidates to the Secretary of State for the 2024 general election.
State management: purchasing; awarding contracts to entities that donate or contribute to certain political candidates or committees; prohibit. Amends 1984 PA 431 (MCL 18.1101 - 18.1594) by adding sec. 264b.