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 Enacts House Bill 96, Transforming Public Construction Laws
Ohio’s House Bill 96 (H.B. 96) officially took effect on September 30, 2025, heralding significant changes to public construction laws and procurement processes within the state. The primary aim of this legislation is to streamline the contractor selection process and modernize project administration.
New Procurement Process
One of the most notable changes is the introduction of the modified “Best Value Selection” procurement process. Public authorities are now required to hold a meeting that outlines a project’s scope and expectations before they start seeking proposals. This approach is expected to enhance clarity and transparency in project expectations.
Additionally, public authorities must rank contractors based on their qualifications before considering their pricing proposals. This new categorization promotes a merit-based system that prioritizes skill and experience.
Changes for Smaller Projects
For construction manager at-risk (CMR) and design-build (DB) projects valued at less than $4 million, public authorities can now simultaneously solicit requests for qualifications (RFQs) and requests for proposals (RFPs). This significantly expedites the procurement process for smaller public projects, allowing for efficiency in project execution.
Moreover, construction managers and design-builders are allowed to perform parts of a project without needing to submit sealed bids, provided that a guaranteed maximum price has been requested. This flexibility can expedite the construction process further.
Subcontractor Regulations and Diversity Initiatives
The new legislation also includes major updates to diversity initiatives. Subcontractors can no longer be disqualified from participating in public projects strictly based on their adherence to affirmative action or diversity, equity, and inclusion (DEI) programs. While the certification of compliance with affirmative action programs for state contractors has been eliminated, contractors must still abide by existing anti-discrimination laws.
Updates on Notice Requirements and Financial Regulations
Public project notice requirements have been revised, with a notable shift to prioritize electronic notifications over print publications. The notice period before bids open has also reduced from 30 days to a minimum of 14 days, allowing for a quicker bidding process.
Retainage, or the amount withheld by project owners until project completion, will no longer need to be held in escrow. However, if owners choose to hold retainage in an escrow account, they must pay earned interest on it. The percentage of required retainage has also decreased, from 8% during the first half of a project to 4% for the entire project duration.
Notarization and Building Standards
Notices of Commencement will no longer require notarization from owners of public land, simplifying the administrative process further. Additionally, the Ohio Facilities Construction Commission has been charged with establishing universal Building Information Modeling (BIM) standards that align with nationally recognized standards, thus modernizing construction practices at a state level.
State Budget Implications
The comprehensive biennial state budget also includes a substantial allocation of $600 million for a new Browns stadium, financed through unclaimed funds instead of through borrowing. The budget presents a flat income tax reduction and a considerable increase in funding for residential development initiatives designed to address ongoing housing shortages.
With an allocation of approximately $200 million dedicated to brownfield remediation efforts, the state’s initiatives appear substantial in tackling environmental considerations. However, education funding has become a contentious topic, as public schools will receive less funding than projected, stirring concerns among community members.
FAQ Section
What is House Bill 96?
Ohio’s House Bill 96 (H.B. 96) took effect on September 30, 2025, introducing multiple reforms affecting public construction projects.
What changes does House Bill 96 bring to contractor selection?
Under the modified “Best Value Selection” procurement process, public authorities must convene a meeting to outline a project’s scope and expectations before soliciting proposals.
What are the new requirements for public project notices?
Public project notice requirements have been updated, flipping the requirement to publish notices electronically first, rather than in print. The notice period has been shortened to a minimum of 14 days before bids open, down from 30 days.
What is the allocation for the new Browns stadium?
The comprehensive biennial budget includes a $600 million allocation for a new Browns stadium, funded through unclaimed funds rather than borrowing.
Key Features of House Bill 96
| Feature | Description |
|---|---|
| Best Value Selection | Modified process requiring a pre-solicitation meeting for project scope. |
| Contractor Ranking | Mandated ranking based on qualifications before pricing proposals. |
| RFQs and RFPs | Simultaneous solicitation for projects under $4 million. |
| Subcontractor Regulation | No disqualification based on DEI program adherence. |
| Notice Requirements | Electronic publication first; notice period shortened to 14 days. |
| Retainage Changes | Requirement decreased from 8% to 4%; no escrow requirement. |
| Budget Allocation | $600 million for the new Browns stadium and significant housing initiatives. |
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
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