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Owner Can't Take Back Final Acceptance Unless Contract Expressly Allows

Wednesday, December 30, 2009 03:50 am

 

Court of Claims of Ohio

2009 Ohio 5319 Lexis 227 (September 11, 2009)

A project engineer's inspection and acceptance didn't prevent an owner from rejecting a contractor's work during a highway bridge project. But once it issued final acceptance, the owner locked itself out of collecting for "pervasive" defects it later uncovered. Monoko, Inc. (Monoko) prepared and painted steel surfaces for an Ohio Department of Transportation (ODOT) bridge project in Guernsey, County. Although ODOT issued final acceptance of the project, several yearslater it claimed Monoko's work was defective and did not comply with specifications. ODOT alleged contract breach and unjust enrichment against Monoko and sought recovery under Monoko's performance bond.

Monoko and its surety asserted that ODOT's final acceptance barred any claim based on alleged performance failure. ODO[...]

 
 
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