There are tons of details to juggle when launching a commercial construction project. One crucial detail that can sometimes be overlooked is the “Notice of Commencement.”

In this blog post, we’ll explain the significance of a Notice of Commencements in Ohio. Whether you’re planning a new development, a renovation, or any commercial construction project, understanding the role of Notice of Commencements can make all the difference in the outcome of your project.

What Is A Notice Of Commencement In Ohio?

A Notice of Commencement is a formal document that officially marks the beginning of a construction project. It serves as a foundational point, setting the project’s timeline and providing essential information about the undertaking.

Think of it as the project’s birth certificate, establishing its start date. A Notice of Commencement allows you to bring order, transparency, and legal compliance to your construction project.

How To File A Notice Of Commencement

• Step 1: Deliver the Notice of Commencement to the Ohio County Recorder where the project will occur.
• Step 2: Post the notice in a prominent place where it will remain for the entire project.
• Step 3: Serve a copy of the notice to the original contractor.

Notice Of Commencement Code In Ohio

Here’s what Ohio Revised Code Section 1311.04 has to say regarding notices of commencement:

“(A)(1) Prior to the performance of any labor or work or the furnishing of any materials for an improvement on real property which may give rise to a mechanics’ lien under sections 1311.01 to 1311.22 of the Revised Code, the owner, part owner, or lessee who contracts for the labor, work, or materials shall record in the office of the county recorder for each county in which the real property to be improved is located a notice of commencement in substantially the form specified in division (B) of this section.”

Benefits Of Having A Notice Of Commencement Filed

Timely Project Initiation

The Notice of Commencement sets the project’s start date in stone. Every subsequent document, notice, or task is linked to this start date, ensuring that everyone involved is aware of their responsibilities and timelines.

Legal Requirement

In Ohio, adherence to construction laws is essential. Ohio Revised Code § 1311.04 outlines the legal requirement for filing a Notice of Commencement. It’s important to note that Ohio is one of the states where this document is mandatory.

Protection From Liens

Notices of Commencement also play a critical role in Ohio’s lien law. By filing an NOC, you establish a framework that helps protect your project from unjustified liens and ensures that all parties follow the proper legal procedures.

Who Needs To File?

In Ohio, filing a Notice of Commencement (NOC) is not optional for certain construction projects. Ohio Revised Code § 1311.04 outlines the legal obligations surrounding the NOC—here are the highlights:

1. Ohio is one of the states where filing an NOC is mandatory. This means that, in specific circumstances, you are legally obligated to file this document at the start of your construction project.
2. The responsibility for filing a Notice of Commencement lies with the property owner or the party authorizing the work to be done on the property. These parties are at the top of the payment chain and, therefore, are best positioned to initiate this crucial document. Ohio law allows original contractors or construction lenders to file as well.

When Should You File?

Most of the time, a Notice of Commencement must be filed before anybody furnishes labor or materials on the real property, though it is possible to file immediately after. So you should be proactive in initiating the NOC to avoid any compliance issues.

Filing the NOC as early as possible in the project’s lifecycle is advisable. The sooner it’s filed, the clearer the project’s start date, and the better you can manage the associated documentation, timelines, and potential lien-related issues.

The Consequences of Non-Compliance

Failing to adhere to the requirements outlined in Ohio Revised Code § 1311.04 can have significant consequences for your commercial construction project.

Compliance Enforcement

Ohio takes compliance with construction laws seriously. Authorities may take action to enforce compliance, potentially leading to fines, penalties, or other legal repercussions for non-compliance.

Loss of Protections

The legal framework established by the NOC is designed to protect the interests of property owners and other stakeholders. Failing to file it may result in a loss of these protections, exposing your project to unnecessary risks.

Legal Complications

Non-compliance with the law can lead to legal complications. It may result in disputes, delays, and potential litigation, which can be costly and time-consuming. With a properly filed NOC, your project also becomes protected from unjustified liens. These liens can hinder the progress of your construction project and potentially result in financial liabilities.

Posting and Record-Keeping Requirements

The filer of the NOC, typically the property owner or authorized party, must display the notice prominently and visibly so that all parties involved in the construction project can easily access and reference it.

In addition to posting at the construction job site, the filer of the NOC must furnish a copy of the notice to the general contractor working on the project. You should record the NOC with the county where the project site is located.

How To Find A Notice Of Commencement

Knowing where to find this essential document can help you stay informed and compliant with Ohio’s construction laws.

On-Site Checks

If you can access the construction site, conduct a physical inspection to look for the posted NOC. Remember that the filer is required to post it in a clear and visible location at the job site. Look for bulletin boards, signs, or designated areas where important project documents are displayed.

Written Requests

If visiting the construction site isn’t feasible, you can make a written request to the property owner or the general contractor by certified mail. Ohio law requires the requested party to produce a copy of the NOC within ten days of receiving the written request.

County Record Searches

Another option is to search for the NOC among recorded documents at the county recorder’s office. You may find a record of the NOC at the county level.

Let Us Take It From Here

Are you ready to launch a successful commercial construction project in Columbus, Ohio? We’re here to assist you every step of the way. Our team of experienced professionals is well-versed in Ohio’s construction laws, including Notice of Commencements, and we’re committed to ensuring your project’s compliance. Don’t leave your commercial construction project to chance.

“This article is intended for general informational purposes only. It is not a legal document, it has not been reviewed by a legal professional, and it is not intended to provide legal advice.”

Let’s talk about how Indecca can help you seamlessly complete your next commercial construction project.