Architypes Summer 2025 – Government Affairs Update

The Ohio General Assembly passed the biennial State Operating Budget, House Bill 96 with 3,156 pages, signed into law by the Governor, effective June 30, 2025.  Votes for and against the bill tracked party lines, with one exception: Senator Bill Blessing (R, Cincinnati) voted against his majority caucus in protest of their failure to address property tax reform, an issue of particular interest to him.

Now law, several construction statutes enact new delivery systems favored in particular by the Ohio Facilities Construction Commission, although not limited to that agency.

Retainage Reform simplifies contractor retainage by 1) holding 4% of labor through substantial completion of the project, 2) prohibit the prime contractor from holding a higher rate of retainage on subcontractors, and 3) eliminate requirement of escrowing funds.  R.C. 153.12, 153.13, 153.14, and 153.63.  AIA supported this provision.

Building Information Modeling (BIM) is a digital representation of a building that allows these models to supplement the “plans and specifications”, permitting the owner to add them to contract documents. This amendment drew opposition, as design professionals must “seal” all such plans with authenticating protocols, and complicates bidding as the software is not generally used by all construction parties.  R.C. 153.01.

Best Value Selection (BVS) allows public authorities to combine the current 2-steps (RFQ, RFP) for Construction Manager at Risk and Design Build into 1-step for projects of less than $4 million. The language permits public authorities to ask for price, currently prohibited by R.C. 153.691 and a direct conflict with Qualifications Based Selection.  R.C. 9.334, 153.693.

Construction Manager Self-Performance allows the CM to bid and self-perform work, except when the pricing is a Guaranteed Maximum Price.  Self-performance by a CM raises the concern of a conflict of interest with the CM’s oversight duties. R.C. 153.501.

Public Exigency Allows agencies outside of the Ohio Facilities Construction Commission to exempt projects from bid process and other laws, for public agency’s convenience. R.C. 123.10.

Electronic Advertisement   Allows notices including bid rejection by mere posting on web, with lack of actual notice to affected parties.  R.C. 9.331, 153.07, 153.09.

Mechanics’ Liens allows an owner by affidavit to terminate a Notice of Commencement, creating an issue of lien priority. Deletes the requirement that a Mechanics’ Lien be in affidavit form.  R.C. 1311.04, 1311.252.

Basic Building Code Exception as private legislation, exempts from the Building Code any building “incident to the agricultural purposes of the land”, previously vetoed by the Governor in HB 33, 2023.  R.C. 3737.83.

Board of Building Appeals Expedited Hearings.   Separately, Senate Bill 6 passed both the Senate and House unanimously, signed by the Governor effective October 1, 2025, to create a right of expedited appeal of a building code ruling.   Under the new law, a party who seeks a variance to a building department ruling may request an expedited appeal.  The Board of Building Appeals must:

 ▪ Commence the appeal within one day after the request is made, excluding Saturdays, Sundays, and legal holidays;

▪ Hold a hearing within five days after the request is made, excluding Saturdays, Sundays, and legal holidays.

Continuing law requires that the Board issue a decision within 30 days.

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