Ohio § 5525.17

§ 5525.17.

(A)(1) If a contractor has not commenced work within a reasonable time, or does not carry

the same forward with reasonable progress, or is improperly performing the work, or

has abandoned, or fails or refuses to complete a contract entered into under Chapters

5501., 5503., 5511., 5513., 5515., 5516., 5517., 5519., 5521., 5523., 5525., 5527.,

5528., 5529., 5531., 5533., and 5535. of the Revised Code, the director of transportation

shall make a finding to that effect and so notify the contractor in writing, and the

rights of the contractor to control and supervise the work shall immediately cease.  The director shall forthwith give written notice to the sureties on the bonds of

such contractor of such action. (2) If, within ten days after the receipt of such notice, such sureties on the contract

performance bond or any one or more of them notify the director in writing of their

intention to enter upon and complete the work covered by such contract, such sureties

shall be permitted to do so and the director shall allow them thirty days, after the

receipt of such notice in writing, within which to enter upon the work and resume

construction, unless such time is extended by the director for good cause shown.  If such sureties do not carry the same forward with reasonable progress, or if they

improperly perform, abandon, or fail to complete the work covered by any such contract,

the director shall complete the same in the manner provided in this section. (3) Except as provided in division (A)(4) of this section, in the event the sureties

on the contract performance bond, or any one or more of them, notify the director

in writing of their intention to enter upon and complete the work covered by such

contract, and then fail or refuse to so complete, any additional costs reasonably

incurred by the director as a result of such failure or refusal shall be computed

by the director and become the liability of such surety, which is not limited by the

amount of the contract performance bond. (4)(a) In the event the sureties on a contract performance bond that relates to a major

bridge project, or any one or more of them, notify the director in writing of their

intention to enter upon and complete the work covered by such contract, and then fail

or refuse to so complete, any additional costs reasonably incurred by the director

as a result of such failure or refusal shall be computed by the director and become

the liability of such surety in an amount not to exceed one hundred fifteen per cent

of the contract performance bond. (b) As used in division (A)(4)(a) of this section, “ major bridge project ” means a bridge project that spans the Ohio river for a contract that was awarded

with the allowances authorized under division (D) of section 5517.011 of the Revised Code . (5) If the surety fails to pay the amount computed by the director under division (A)(3)

or (4) of this section, the director shall certify the facts to the attorney general,

who shall proceed to collect such additional costs from the surety and the amount

so collected shall be paid into the state treasury to the credit of the fund from

which the excess cost was originally paid. (B) If, after receiving notice of the action of the director in terminating the control

of the contractor over the work covered by the contract, the sureties on such contract

performance bond do not within ten days give the director the written notice provided

for in this section, the director shall cause that portion of the work which remains

uncompleted to be re-estimated and relet in accordance with the requirements applicable

to original bids;  or in the event the director determines with the approval of the

controlling board that an extraordinary emergency exists, the director may contract

for the completion of the work without advertising for bids, if the director considers

it to be in the best public interest. (C) Before entering into a contract for the completion of any such improvement in accordance

with division (B) of this section, the director shall require a contract performance

bond and a payment bond with sufficient sureties each in an amount equal to one hundred

per cent of the estimated cost of completing the work, and conditions relating to

the bonds of original contractors shall apply to such bonds. (D)(1) If the cost of completing such work under division (C) of this section exceeds the

amount set aside or apportioned therefor, the remainder of the cost shall be paid

from the appropriations from the state highway operating fund available for the use

of the department of transportation and against which no contractual obligations exist. (2) Subject to the limitation specified in division (A)(4) of this section, if the cost

of completing any such improvement exceeds the portion of the contract price remaining

unpaid to the original contractor at the time of default, such excess shall be computed

by the director and becomes the liability of such contractor or surety or both.  If either the contractor or surety fails to pay such amount, the director shall

certify the facts to the attorney general, who shall proceed to collect such excess

cost from the contractor and the sureties upon the contract performance bond, and

the amount so collected shall be paid into the state treasury to the credit of the

fund from which the excess cost was originally paid. (E) Where the estimated cost of completing a defaulted contract does not exceed five

thousand dollars, the director may complete the same by force account, or by a contract

let without advertisement.