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’s House Bill 96 Transforms Public Construction Laws
Ohio’s House Bill 96 (H.B. 96) is set to bring significant changes to public construction projects across the state, with the reforms officially taking effect on September 30, 2025. This new legislation aims to streamline the contractor selection process and modernize how projects are managed, which is expected to improve efficiency and reduce delays in public construction initiatives.
Key Reforms in Contractor Selection
One of the primary changes introduced by H.B. 96 is the implementation of a modified “Best Value Selection” procurement process. This approach requires public authorities to hold a meeting to define a project’s scope and expectations before they request proposals from contractors. The reform mandates that these authorities rank contractors based on their qualifications prior to considering their pricing proposals, ensuring a more qualified set of bidders.
Changes for CMR and DB Projects
For projects categorized under construction manager at-risk (CMR) and design-build (DB) that are valued at less than $4 million, public authorities will now have the option to solicit requests for qualifications (RFQs) and requests for proposals (RFPs) simultaneously. This change aims to expedite the bidding process, making it quicker to move from planning to execution.
Additionally, construction managers and design-builders are permitted to self-perform certain elements of a project without the need to submit sealed bids, provided that a guaranteed maximum price has been established. This flexibility could help minimize costs and streamline operations.
Subcontractor Rules and Compliance Changes
Another significant revision is that subcontractors can no longer be disqualified from public projects for failing to adhere to affirmative action or Diversity, Equity, and Inclusion (DEI) programs. Furthermore, the previous requirements for state contractors to possess certification of compliance with affirmative action programs have also been eliminated. However, compliance with anti-discrimination laws remains mandatory.
Updated Notice Requirements and Retainage Policies
The notice requirements for public construction projects have undergone updates as well. The legislation now mandates that notices be published electronically first, rather than in print. The notice period has been shortened to a minimum of 14 days before bids are opened, cut down from the previous 30 days.
As for retainage, public construction projects are no longer required to hold this in an escrow account. However, if owners choose to keep retainage in escrow, they must pay any earned interest. The required percentage of retainage has also been reduced from 8% for the first half of a project to 4% throughout the entire duration.
Further Legislative Actions and Funding Allocations
In addition to these changes, the legislature has modified procedures related to Notices of Commencement, eliminating the need for notarization by owners of public land. The Ohio Facilities Construction Commission is now tasked with developing universal Building Information Modeling (BIM) standards that align with nationally recognized practices.
The comprehensive biennial budget reveals a $600 million allocation for a new Browns stadium, funded through unclaimed funds rather than borrowing. It also includes a flat income tax reduction and a significant boost in funding for residential development initiatives aimed at alleviating housing shortages. Furthermore, around $200 million has been set aside for brownfield remediation efforts.
However, education funding continues to stir controversy, as public schools are noted to receive significantly less than what is deemed necessary for adequate financing based on past reports.
FAQ
When did Ohio’s House Bill 96 take effect?
Ohio’s House Bill 96 took effect on September 30, 2025.
What are the main goals of House Bill 96?
The legislation aims to streamline the contractor selection process and modernize project administration within the state.
What changes were made regarding retainage on public projects?
Retainage on public construction projects is no longer required to be held in escrow. The percentage of required retainage has decreased from 8% for the first half of a project to 4% throughout the project duration.
Key Features of Ohio’s House Bill 96
| Feature | Description |
|---|---|
| Effective Date | September 30, 2025 |
| Best Value Selection Process | Modified to require a project scope meeting before soliciting proposals. |
| RFQs and RFPs | Simultaneous solicitation for projects under $4 million. |
| Subcontractor Compliance | Cannot be disqualified for non-adherence to DEI programs. |
| Retainage Changes | Escrow not required; percentage decreased from 8% to 4%. |
| Notice Requirements | Published electronically first, shortened to a minimum of 14 days. |
| Budget Allocation | $600 million for a new Browns stadium from unclaimed funds. |
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 TX News
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