Ohio, October 2, 2025
News Summary
Ohio has implemented House Bill 96, reforming public construction laws to simplify contractor selection and modernize project management. Key changes include a new ‘Best Value Selection’ process, ranking contractors based on qualifications, and allowing simultaneous requests for qualifications and proposals. Additionally, subcontractors are no longer disqualified for non-compliance with diversity programs, and the law now mandates electronic notice publications. Other adjustments include changes to retainage practices and a biennial budget that allocates funds for a new stadium and brownfield remediation.
Ohio Passes House Bill 96, Transforming Public Construction Laws
Ohio’s House Bill 96 (H.B. 96) officially took effect on September 30, 2025, marking a significant overhaul of public construction laws and the procurement processes that govern them. This new legislation aims to simplify the contractor selection process and modernize how public construction projects are managed throughout the state.
Key Changes in Contractor Selection
One of the major reforms introduced is the modified “Best Value Selection” procurement process. Public authorities are now required to hold a meeting to discuss the scope and expectations of a project prior to soliciting proposals. This change is intended to better align contractor capabilities with project requirements.
Additionally, public authorities must now rank contractors based on their qualifications before moving on to consider pricing proposals. This shift emphasizes the importance of selecting the right contractor and ensures that qualifications take precedence over cost in the initial stages of the decision-making process.
Updated Solicitation Processes
For construction manager at-risk (CMR) and design-build (DB) projects that are valued at under $4 million, public authorities now have the option to simultaneously request for qualifications (RFQs) and proposals (RFPs). This approach could lead to a more streamlined process as it allows agencies to receive detailed project proposals alongside contractor qualifications.
Furthermore, construction managers and design-builders are allowed to self-perform certain parts of a project without needing to submit bids under seal, provided that a guaranteed maximum price has been requested. This flexibility may encourage more firms to participate in public projects.
Changes to Diversity and Compliance Requirements
Significantly, subcontractors can no longer be disqualified from participating in public projects due to non-compliance with affirmative action or diversity, equity, and inclusion (DEI) programs. Moreover, the previous requirement for state contractors to hold certification of compliance with an affirmative action program has been removed. However, these contractors must still adhere to existing anti-discrimination laws.
Rise of Digital Notices and Adjustments in Bidding Periods
The updated law also modernizes the notice requirements for public projects, shifting the requirement to publish notices electronically first, rather than in traditional print. The bidding period for these projects has been shortened as well, now requiring a minimum of 14 days before bids open, significantly cut down from the previous 30 days.
Changes to Retainage Rules
Additional updates include changes to retainage practices. Public construction projects are no longer required to hold retainage in escrow; however, if owners choose to hold retainage in an escrow account, they must pay interest on the amounts held. The percentage of retainage required has also dropped from 8% during the initial phases of a project to just 4% for the entire duration.
Organzational and Budgetary Context
As part of Page Updates, Notices of Commencement are now free from the need for notarization by owners of public land. The Ohio Facilities Construction Commission is entrusted with creating universal Building Information Modeling (BIM) standards that align with national benchmarks.
A comprehensive biennial budget is also in place that features a notable $600 million allocation specifically for a new Browns stadium to be financed through unclaimed funds rather than through borrowing. This budget also includes a flat income tax reduction and an increased allocation for residential development initiatives, addressing the ongoing housing shortages in the region.
On the environmental front, around $200 million has been earmarked for brownfield remediation efforts, highlighting a commitment to improving land use. However, education funding remains a contentious issue with public schools receiving less funding than previously estimated will be necessary for adequate financing.
Deeper Dive: News & Info About This Topic
Additional Resources
- Frost Brown Todd: Ohio Modernizes and Simplifies Public Construction Contractor Selection
- Vorys: Ohio Budget Bill Brings Significant Changes and Economic Development Focus
- Ohio Capital Journal: Ohio Senate Passes Budget Giving Browns $600M Grant
- News 5 Cleveland: Ohio House Passes State Budget – Highlights
- Wikipedia: Legislation
Author: Construction FL News
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