Governor Kasich’s Budget Bill returns to play major construction reforms which Ohio House Democrats sidetracked last Session in favor of authorizing three pilot trial projects.  

.    State institutions and agencies (as well as counties, municipalities and townships) would no longer be required to bid to multiple-prime (MEP) contractors. 

.    They could utilize CM at-risk, design-build and single prime contracting. 

.    Both CM at-risk and design-build could be used without a full competitive bid process, but instead utilizing a new proposal selection process.

.    The threshold for the competitive bid process would be raised from $50,000.00 to $200,000.00 on all public construction projects.

.    All state institutions of higher education would be exempted from prevailing wage requirements (as K-12 presently). 

.    Primary and secondary education institutions could no longer require prevailing wages (they can no longer “opt in”).

.    An improvement by private entity with the benefit of public financing, grants or in-kind support from a public authority would be exempt from prevailing wage.

.    Interested parties (i.e. unions) would no longer have a right to sue regarding a violation of prevailing wage law when the Governor’s Director of Commerce fails to rule upon a prevailing wage complaint within sixty days after the complaint is filed.

It appears that, under these alternative contract delivery systems, performance bond protections are preserved for owners and payment bond protections are preserved for subcontractors and suppliers.