Thursday, June 30, 2011

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...

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