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’s House Bill 96 Enacted, Transforming Public Construction Laws
Ohio’s House Bill 96 (H.B. 96) came into effect on September 30, 2025, marking a significant shift in the management of public construction projects across the state. The law aims to simplify the contractor selection process and modernize the way projects are administered, ultimately enhancing efficiency and transparency in public procurement.
Streamlined Contractor Selection
One of the key changes introduced by H.B. 96 is the modified “Best Value Selection” procurement process. Public authorities are now required to hold a meeting to define a project’s scope and expectations before soliciting any proposals. This preliminary step ensures that all potential contractors have a clear understanding of the project requirements.
Ranking Contractors Based on Qualifications
H.B. 96 mandates that public authorities rank contractors based on their qualifications prior to evaluating pricing proposals. This change is expected to promote a more fair and standards-based decision-making process when selecting contractors for public projects.
New Processes for Smaller Projects
For construction manager at-risk (CMR) and design-build (DB) projects valued under $4 million, public authorities can now simultaneously seek both requests for qualifications (RFQs) and requests for proposals (RFPs). This simultaneous solicitation can save time and resources for both the public authority and the contractors involved.
Flexibility in Project Performance
Another notable change is that construction managers and design-builders can now self-perform parts of a project without the need to submit bids under seal, as long as they request a guaranteed maximum price. This flexibility allows for greater efficiency in project execution.
Revised Subcontractor Regulations
Under the new law, subcontractors can no longer be disqualified from public projects solely for not adhering to affirmative action or diversity, equity, and inclusion (DEI) programs. Additionally, the previously required certification of compliance with an affirmative action program for state contractors has been eliminated. However, contractors are still responsible for complying with existing anti-discrimination laws.
Updated Notice Requirements
The regulations surrounding public project notices have also evolved. The requirement to publish notices electronically first has replaced the previous mandate for print publication. Furthermore, the notice period for public construction projects has been shortened, now requiring a minimum of 14 days before bids open, down from 30 days.
Changes to Retainage and Notice of Commencement
Retainage on public construction projects is no longer required to be held in escrow; however, owners must pay earned interest if they opt to hold retainage in an escrow account. Additionally, the percentage of required retainage has decreased from 8% for the first half of a project to just 4% throughout the project’s duration. Also, Notices of Commencement are now exempt from notarization by owners of public land.
Establishment of BIM Standards
The Ohio Facilities Construction Commission has been tasked with creating universal Building Information Modeling (BIM) standards that align with recognized national standards. This initiative is expected to advance the use of technology in public construction projects.
Significant Budget Allocations
The comprehensive biennial budget accompanying H.B. 96 includes a noteworthy allocation of $600 million for a new Browns stadium, funded through unclaimed funds. Additionally, the budget implements a flat income tax reduction and significantly increases funding for residential development efforts, especially to address housing shortages. Approximately $200 million has been designated for brownfield remediation initiatives as part of this budget.
Ongoing Education Funding Challenges
Despite these advancements, education funding continues to be a contentious issue, as public schools are receiving considerably less than what past reports and projections indicate is necessary for adequate financing.
Frequently Asked Questions
What does Ohio’s House Bill 96 do?
Ohio’s House Bill 96 (H.B. 96), which took effect on September 30, 2025, introduces multiple reforms affecting public construction projects, aiming to streamline the contractor selection process and modernize project administration within the state.
What are the new rules regarding 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, and they are now required to rank contractors based on qualifications before considering pricing proposals.
How has the retainage rule changed?
Retainage on public construction projects is no longer required to be held in escrow; however, owners must pay earned interest if they choose to hold retainage in an escrow account. The percentage of required retainage has decreased from 8% for the first half of a project to 4% throughout the project duration.
Are there changes to subcontractor regulations?
Subcontractors can no longer be disqualified from public projects for not adhering to affirmative action or diversity, equity, and inclusion (DEI) programs. The certification of compliance with an affirmative action program has also been eliminated for state contractors.
Key Features of Ohio’s House Bill 96
| Feature | Description |
|---|---|
| Best Value Selection | Contractors must be ranked based on qualifications before pricing is considered. |
| Shortened Notice Period | Minimum notice period for public projects is now 14 days. |
| Simultaneous Solicitation | For CMR and DB projects under $4 million, RFQs and RFPs can be solicited at the same time. |
| Retainage Adjustments | The required retainage is now 4% throughout the project, instead of 8% for the first half. |
| BIM Standards | Universal Building Information Modeling standards to be established by the Ohio Facilities Construction Commission. |
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
Author: Construction CA News
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