{"id":903363,"date":"2024-10-01T16:24:38","date_gmt":"2024-10-01T22:24:38","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=903363"},"modified":"2024-10-01T16:24:42","modified_gmt":"2024-10-01T22:24:42","slug":"ohio-home-construction-suppliers-services-act-new-scope","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/ohio-home-construction-suppliers-services-act-new-scope\/","title":{"rendered":"New Scope of Ohio Home\u00a0Construction\u00a0Suppliers Services Act Takes Effect"},"content":{"rendered":"\n

Jacob H. Levine | Cannabiz Law Blog<\/a><\/p>\n\n\n\n

Effective Sept. 19, the bill Gov. Mike DeWine recently signed into law, (HB 50<\/a>) ushers in significant changes to the Ohio Home Construction Suppliers Services Act<\/a> (HCSSA).<\/p>\n\n\n\n

This new legislation expands the definition of \u201chome construction service\u201d to include not only the construction of new residential buildings but also the repair, improvement, remodeling and renovation of existing structures<\/strong>.<\/p>\n\n\n\n

Key Changes Under HB 50<\/strong><\/p>\n\n\n\n

The revised definition under R.C. 4722.01(B) now states:<\/p>\n\n\n\n

\u201cHome construction service\u201d means the construction of a residential building, including the creation of a new structure and the repair, improvement, remodel, or renovation of an existing structure<\/strong>. \u201cHome construction service\u201d does not include construction performed on a structure that contains four or more dwelling units, except for work on an individual dwelling unit within that structure, or construction performed on the common area of a condominium property.<\/em><\/p>\n\n\n\n

This change supersedes recent court decisions in Ohio\u2019s 11th and 5th district courts of appeal, which had previously held that the Consumer Sales Practices Act (CSPA) applied to remodeling projects, while the HCSSA was limited to new home construction.<\/p>\n\n\n\n

For a contract to fall under the HCSSA, it must exceed $25,000, and the contractor must maintain liability insurance of at least $250,000. If these conditions are not met, the contract will generally be governed by the CSPA.<\/p>\n\n\n\n

The key distinction between the HCSSA and the CSPA is that the latter allows for treble damages (three times the actual damages) in certain situations, whereas the HCSSA does not provide for such damages.<\/p>\n\n\n\n

Implications for Contractors<\/strong><\/p>\n\n\n\n

This change effectively removes remodeling and renovation work from the scope of the CSPA, provided the contract price is $25,000 or more. While the HCSSA imposes specific requirements on builders and remodelers, it eliminates the risk of treble damages, which is a significant relief for contractors. However, it also means that many existing contracts may no longer be compliant with the HCSSA.<\/p>\n\n\n\n

Compliance Requirements<\/strong><\/p>\n\n\n\n

Under the HCSSA, contracts must now include:<\/p>\n\n\n\n