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Ohio Appeals Court Holds That Contractor Who Seeks Application of HOOP Formula to Calculate Home Office Overhead Need Not Prove the Conditions Precedent for Application of Eichleay Formula

Wood Elec., Inc. v. Ohio Facilities Constr. Comm'n, 10th Dist. Franklin No. 16AP-643, 2017-Ohio-2743, 2017 Ohio App. Lexis 1745 (May 9, 2017)

Author: Jane Fox Lehman

7/13/2017

Read the full post at Constructlaw

Ohio Appeals Court Holds That Contractor Who Seeks Application of HOOP Formula to Calculate Home Office Overhead Need Not Prove the Conditions Precedent for Application of Eichleay Formula

The Ohio Facilities Construction Commission (OFCC), together with a school district, an architect, and a construction manager, issued an invitation for bids to build a school. Three prime contractors were chosen: a general contractor, a mechanical contractor, and an electrical contractor, Wood Electric (Wood).

The general contractor failed to meet the contractual milestones for either temporary enclosure or full building enclosure, significantly delaying Wood’s work. Wood notified the OFCC of the likely impact on its work soon after the general contractor failed to meet the first milestone, and requested an extension of its own deadlines. The OFCC denied Wood’s request. Wood then requested an extension of time in which to prepare, substantiate, and certify a formal claim, which the OFCC also denied. Wood hastened to submit a timely claim, projecting an impact of $207,467.57, and reserving its right to supplement the claim when the full impact on its work became known.