{"id":886970,"date":"2016-02-09T17:30:44","date_gmt":"2016-02-10T00:30:44","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=886970"},"modified":"2016-02-09T17:30:44","modified_gmt":"2016-02-10T00:30:44","slug":"failure-to-follow-claims-procedure-was-an-irrevocable-waiver-of-the-claim","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/failure-to-follow-claims-procedure-was-an-irrevocable-waiver-of-the-claim\/","title":{"rendered":"Failure to Follow Claims Procedure was an Irrevocable Waiver of the Claim"},"content":{"rendered":"<p>Stan Martin | Commonsense Construction Law LLC | February 3, 2016<\/p>\n<p>Consider this sentence: <strong>\u201ccourts cannot decide cases of contract interpretation on the basis of what is just or equitable.\u201d<\/strong> Contractors are reminded, via an Ohio Court of Appeals decision, that claim deadlines and waiver language will be applied when the contractor is late in submitting what may well be a legitimate claim. And when the contract terms state that late claims are deemed to be waived, courts will normally enforce those terms. The case is <em>IPS Elec. Services, LLC v. Univ. of Toledo<\/em>, 2016 Ohio 361 (Feb. 2, 2016) (subscription required).<\/p>\n<p>IPS was performing electrical work for the University of Toledo. There were apparently problems that impacted the schedule, not of IPS\u2019s doing. IPS sent letters to the University complaining about the impacts, and the resulting need to accelerate performance, in October and again in December 2012. The December letter could be read to state that IPS expected the University to reimburse IPS for the additional costs. In January 2013, IPS stated in writing that it had \u201cpreviously provided . . . written notices of impacts and claims.\u201d Then, in February, IPS sent a letter providing backup. Finally, in April 2013, IPS provided a certified claim to the University.<\/p>\n<p>But the contract claim language worked against IPS. Notice was required \u201cwithin 10 days after the occurrence of the event giving rise to the claim.\u201d In this instance, that would have been sometime in October 2012. Further, the contract stated that the failure to give notice \u201cshall constitute the Contractor\u2019s irrevocable waiver of the claim.\u201d Substantiation of the claim was due within 30 days of initiating the claim; the contract stated that failure to provide this substantiation would also constitute an \u201cirrevocable waiver\u201d of the claim. Finally, certification of the claim was also required within 30 days after initiating the claim. The failure to timely provide the certification, per the contract &#8211; the reader can see where this is headed &#8211; would constitute an \u201cirrevocable waiver.\u201d<\/p>\n<p>IPS made all the arguments one might expect of a contractor with a meritorious claim that had not complied with contract deadlines: the contract terms were unfair, the University would get a windfall, the equities weighed against a strict enforcement of the claim language, and particularly that IPS had notified the University of the issues, even if it had not done so in the proper format or strictly per the contract deadlines. The appellate court was unmoved. As recited above&#8230;<\/p>\n<p><a href=\"http:\/\/www.lexology.com\/library\/detail.aspx?g=3807d1b6-25d3-4a75-ba35-fd3b466c2b85&amp;utm_source=Lexology+Daily+Newsfeed&amp;utm_medium=HTML+email+-+Body+-+General+section&amp;utm_campaign=Lexology+subscriber+daily+feed&amp;utm_content=Lexology+Daily+Newsfeed+2016-02-05&amp;utm_term=\" target=\"_blank\">To finish reading this article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Stan Martin | Commonsense Construction Law LLC | February 3, 2016 Consider this sentence: \u201ccourts cannot decide cases of contract interpretation on the basis of what is just or equitable.\u201d Contractors are reminded, via an Ohio Court of Appeals decision, that claim deadlines and waiver language will be applied when the contractor is late in&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/failure-to-follow-claims-procedure-was-an-irrevocable-waiver-of-the-claim\/\">Continue reading <span class=\"screen-reader-text\">Failure to Follow Claims Procedure was an Irrevocable Waiver of the Claim<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9,3],"tags":[6302,224,3,9075,9074],"class_list":["post-886970","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","category-insurance-claims","tag-construction-clause","tag-construction-contract","tag-insurance-claims","tag-irrevocable-waiver","tag-strict-compliance","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Failure to Follow Claims Procedure was an Irrevocable Waiver of the Claim - Advise &amp; 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