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OHIO CONSTRUCTION REFORM PANEL

DRAFT Bonding Rules for Construction Reform - COMMENTS ENCOURAGED!

Bonding Requirements Draft Rule

The first of eight rules pertaining to the construction reform package has been drafted by the Ohio Department of Administrative Services (DAS). The first rule concerns the new surety bond regulations. This is only an initial draft, and has not yet been filed with the Joint Committee on Agency Rule & Review (JCARR). Keep in mind, that this draft is a starting point.

DAS is expected to hold interested party meetings in the very near future, and your comments should be submitted as soon as you are done with your review. DAS plans to file the rule, including any changes, with JCARR on September 30, 2011.

Provide your feedback on the proposed regulations to Rand Howard of DAS, Randall.Howard@das.state.oh.us, and be sure to copy AGC of Ohio on your comments: Rich Hobbs, rjh@agcohio.com. If you do not wish to reveal your company’s concern, you may email the comments to AGC where it will be bundled with other questions/comments and concerns of the association and its members—offering you the protection of a non-identity release.

AGC of Ohio Educates Over 500 Construction Professionals
About New Public Construction Requirements

In the span of a week in mid-September, over 500 contractors, design professionals, public authorities and construction attorneys attended AGC of Ohio’s four Construction Reform seminars featuring Jeff Appelbaum of Thompson Hine, the Construction Reform Panel facilitator, and representatives from the Ohio Department of Administrative Services. The educational sessions – held in Columbus, Cleveland, Cincinnati and Toledo – were co-hosted by the seven AGC of Ohio operating divisions and their related organizations… READ MORE

Ohio Public Construction Procurement FINALLY Begins to Catch Up with Modern Times

HB 153 (Amstutz, R-Wooster), Ohio’s biennial budget, included provisions that would significantly change the way Ohio procures public construction projects, known as construction reform. The legislation was signed by Governor Kasich on June 30.

The new law allows public owners to select the project delivery system that best suits their project – as opposed to the archaic multiple-prime mandate that has been in effect since the late 1800s. Construction reform will make public building more efficient, economical and transparent.

The construction reform portions of the measure will go into effect until the Ohio Department of Administrative Services (DAS) creates new contract documents and adopt bonding requirements for the alternative delivery systems. Once the new bonding rules commence, so will construction reform. Since DAS cannot file rules with JCARR until the bill takes effect (or 90 days after the Governor’s signature) and it takes approximately 75 days for the rules to go through JCARR and become effective, the earliest reform will officially begin is most likely December.

AGC of Ohio appreciates the Ohio legislature, House and Senate leadership and staff, the Governor’s office and public owners’ willingness to take on this important issue for the construction industry.

AGC of Ohio staff spent a significant amount of time and effort educating legislators. Our advocacy initiatives were coordinated with other interested parties and the AGC divisions, and numerous AGC members took time to reach out to their representatives and senators about the issue. We worked extensively with public owners – especially DAS, OSFC and OSU – and Jeff Appelbaum of Thompson Hine, the construction reform panel facilitator, to help move the initiative forward.

A significant part of construction reform is allowing public owners to select a delivery system that best fits their project. AGC of Ohio has opposed the multiple-prime mandate since the association was created in 1970. AGC’s retired lobbyist, Donn Ellerbrock, recalls discussions with former Ohio House Speaker Vern Riffe about the matter. Since this magazine was created in 1991, dozens of articles about the inefficiencies and added costs of the multiple prime delivery system have been featured. Almost every AGC of Ohio President in the past 20 years has said the repeal of the multiple prime mandate is a top priority for the association.

After over twenty-five years of battling over the multiple prime mandate, a decision was made to redirect the AGC’s efforts to educate public owners about the benefits of alternative delivery systems since they stood the most to gain with the repeal of the mandate. With the public owners’ support and leadership, an issue that traditionally has been viewed as infighting amongst the construction industry became, as it always should have been, good public policy.

We thank everyone involved in this year’s efforts to reform construction procurement – and those who have worked in the past on this issue – the seemingly monstrous task could not have been accomplished without your efforts!