The 19th Century called, and it wants its construction law back!

It's on its way. I keep resisting the urge to pinch myself to determine if I'm dreaming or not. Could Governor Kasich really be signing the most sweeping changes in Ohio's construction law in 134 years into law tonight?

After working on public construction projects for most of my professional career, and dealing with the issues raised by coordinating multiple prime contractors, there is truly light at the end of the tunnel. In ten bullets, here is what the new law contains:

• Retains Multiple-Prime Design-Bid-Build project delivery as the default method of construction, but adds other options
• Removes limitations on Single-Prime Design-Bid-Build project delivery (General Contractor may be used at any dollar value)
• Allows Design-Build project delivery (single entity assumes risk for final design and construction of the facility including cost overruns)
• Allows Construction Manager at Risk project delivery (CM holds subcontracts and assumes risk for cost overruns)
• Enables selection of a Design-Build Firm or CM at Risk through a Best Value Selection process (combination of qualifications and price)
• Allows public authorites to authorize Design-Build Firm or CM at Risk to utilize Design Assist Subcontractors (early engagement to facilitate coordination before construction begins)
• Enables Design-Build Firms and CM at Risk to execute a Guaranteed Maximum Price amendment when construction documents are at a sufficient level of detail (60-75 percent complete)
• Requires DAS to file rules for Best Value Selection process, forms of Contracts and Subcontracts, and standards for criteria that a Design-Build Firm or CM at Risk may use to prequalify subcontractors
• Requires DAS to file rules for bonding requirements before Construction Reform provisions go into effect (earliest possible date is Dec. 15, 2011)
• Allows the new project delivery methods to be used by state agencies, state institutions of higher education, counties, townships, municipal corporations, school districts, or other political subdivisions

Implementation will take some time and a lot of effort from many different people. I thank everyone who pushed this issue over the last 21+ years. It's been a long time coming and I trust it will be worth the wait. See you soon...

One Last Push Across the Finish Line

Dear friends, First, I want to thank you for your help a few weeks ago, prior to the Senate passing their version of H.B. 153, the state's operating budget. Someone said to me yesterday that the construction reform measures are the single most powerful tool that is being provided to increase the efficiency of governmental processes in this budget. I received a report this morning that the Senate members of the Conference Committee are angling to get certain provisions of their version of the construction reform provisions into the final budget. The administration and the House of Representatives are clear in their position to send the House version to the Governor for signature next week. This version DOES NOT include a requirement for public bid openings conducted by the public authority, which implements more bureaucracy. It DOES include a provision to allow early engagement of subcontractors to provide their knowledge and experience to the project team before construction documents are complete, which provides increased integration of the design team, saving money and time, while improving the quality of the completed facility. I am reaching out to ask for your help to call your Senator, and perhaps a few others, to ask them to support the House version of construction reform. We are very close to the finish line and need one last push to cross it with a bill that provides the best opportunity for public owners to realize the savings available through flexible project delivery methods including construction manager at risk, design-build, and single-prime design-bid-build. The Senate roster and a search tool to allow you to locate your elected officials is available at http://www.ohiosenate.gov/. Thank you for your personal advocacy on this very important initiative. Please feel free to forward this message to your colleagues and contacts in the Ohio design and construction community. Warmest personal regards, Lane J. Beougher, AIA, FCSI