A home construction service supplier may take as a down payment not more than ten per cent of the contract price before the supplier’s performance that is required by the contract begins, except a supplier may take as a down payment not more than seventy-five per cent of the total cost of any special order item that is otherwise not returnable or usable before the supplier’s performance that is required by the contract begins. This section does not apply to a home construction service supplier who enters into a cost-plus contract. A supplier may accept payments from a construction loan in connection with a home construction service contract.

Terms Used In Ohio Code 4722.04

  • Contract: A legal written agreement that becomes binding when signed.
  • Cost-plus contract: means a contract entered into between an owner and a home construction service supplier under which payment to the supplier is based on the cost of a product plus the supplier's rate for labor to install the product plus an agreed percentage of profit or a stipulated fee. See Ohio Code 4722.01
  • Home construction service: means the construction of a residential building. See Ohio Code 4722.01
  • supplier: means a person who contracts with an owner to provide home construction services for compensation and who maintains in force a general liability insurance policy in an amount of not less than two hundred fifty thousand dollars. See Ohio Code 4722.01

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