Services

Most folks have a generalization of what a statute of limitations is. For example, in Oklahoma actions based in tort and for purposes of this video I’m going to focus on the negligence. There is a two year statute of limitations whereas contracts or if a written contract, it’s a five year statute. If it is a oral contract, it’s three and then intentional acts have a short statute of one year. Statute of limitations begins to run upon the date that the harm is discovered. So a two year period for negligence would begin to run when the negligent act is discovered and obviously this doesn’t apply to actions based in contract where, as a contract statute would begin to run upon completion of the contract. Some things that can toll the statute of limitations is fraud or concealment. There are other situations that can affect that time as well.

Disputes can come from a multitude of areas including design, permitting, construction, and supply of services and materials to a given project, disputes over the scope of work, or plans, and specifications, which usually involve interpretation of work or plans and specifications as well, as to the scope of work to be performed.

Oklahoma’s Right To Repair Law was designed to protect parties to residential improvements in construction to save time and money, and hopefully avoid unnecessary litigation in the event that there is a problem.

A typical definition of what a substantial completion is from the AIA is that it’s a state in the progress of work when the work or designated part thereof is sufficiently complete in accordance with the contract documents so that the owner can occupy or utilize the work for its intended purpose. Why defining substantial completion is so important is because of all the other provisions it can trigger, such as statutes of limitations, statutes of repose.

What is considered the work of a man of good workman-like ability. What this means is that the workman-likability creates an implied warranty much like the warranty of habitability, and that a new home being constructed under good workman-like manner is or will be reasonably fit for occupancy.

To start things off, the definition of warranty that the courts have adopted over the years is simple. Obviously, most folks know that what a warranty is and have an intuitive idea there as well, but the courts like this definition. And in essence, it’s an express or implied statement of something undertaken as part of a contract, but collateral to its object. So it’s essentially something additional to the physical output of the contract.

And the first one is whether or not time is of the essence. And provisions such as this can create, or prevent, all kinds of future problems. And I will get into time is of the essence provisions more with some subsequent topics, but when time is of the essence, there usually are obviously stricter requirements to complete work, and thus folks who do not meet the requirements are in a position to be liable for not biding by the contract. And like I said, I will get into this provision in significant more detail in some other videos and how it can affect the contracting process and damages and ultimate recovery if something were to happen. With regard to time is of the essence, as a side note, it’s important that folks who supply materials don’t enter into these type of contracts because they don’t have as much control, if any, when certain deadlines need to be met, and you’d hate to obligate yourself to a deadline that is not going to be feasible based on somebody else’s failure to meet that deadline that you rely upon. Another important term is how everyone’s going to get paid. And this needs … A payment schedule is always preferable. It does create extra work, but it’s pretty common place and it should always have a part in the contracting process.