OHIO CONSTRUCTION REFORM PANEL
On April 13, 2009 the State of Ohio released the executive summary and report detailing
the 25 recommendations of the Ohio Construction Reform Panel (CRP). Legislation has
been introduced as part of the budget bill –HB 318– and is currently under consideration.
At
the request of Ohio Governor Ted Strickland, the CRP was created in August 2008 by
the Ohio Department of Administrative Services to review publicly funded and administered
construction processes and make recommendations to improve and streamline the processes.
The panel included public owners, state lawmakers, contractors, design professionals,
and trade union representatives. AGC of Ohio Executive Vice President Rich Hobbs
participated on the panel.
According to the report, CRP recommendations would provide government entities new
methods of carrying out projects to cut months of time and millions of dollars in
costs. The changes are designed to bring about transparency, flexibility, accountability,
and efficiency.
The panel has recommended making three project delivery systems available to public
construction—construction management at risk, design build, and general contracting—in
addition to the current mandated multiple-prime system.
Other recommendations include prequalification/contractor certification; electronic bidding; depoliticizing the State Architect’s Office and its staff; and uniform contract documents.
Currently, there is a lot of false information being spread about the report. For
example, some have said the CRP is doing away with competitive bidding! Obviously,
this is completely false. Others have said the CRP is doing away with Multi-Prime!
Once again, false! Multi-Prime is maintained as a viable delivery system for public
owners. The CRP recommendations provide additional delivery systems commonly used
in other states and the private sector.
AGC of Ohio supports the CRP’s recommendations. While there are many complicated
proposals within the overall CRP report, the following bullet point list helps simplify
pertinent aspects of the recommendations:
- The existing Multi-Prime Delivery System will be maintained.
- Three Additional Delivery Systems will be Permitted:
- Construction Manager at Risk (CM @ Risk)
- Design Build
- Single Prime Construction (General Contractor)
- MEP (Mechanical, Electrical & Plumbing Contractors) will have built-in “shopping” and payment protections within the new delivery systems.
- Contractors, Architects, Construction Managers, MEP’s must be Pre-Qualified.
- All other subcontractors must be certified – leading to complete pre-qualification over a period of several years. (Currently, the Ohio Dept. of Transportation pre-qualifies every contractor doing ODOT work.)
- Competitive Bidding is maintained and enhanced.
- The Selection Process of CM’s and Architects will be enhanced and more transparent via a Quality Based Selection Process.
- Public Owners will be able to further Qualify Prospective bidders – including Architects.
- Public Advertisement of Bidding Opportunities will be Electronic as well as traditional print medium.
- The scope envelops all State Government, Two-Year and Four-Year Colleges and Universities, Counties, and the Ohio School Facilities Commission. (ODOT is not included – they already have many of these options)
- Maximize Opportunities for EDGE and Small Contractors.
- Create an Expedited Process for Small Projects.
- The current threshold for Multi-Prime Construction will be increased to $200,000 with a Single Prime Maximum set for $600,000.
- Require all Project Managers, Architects, and Public Administrators to be properly qualified.
- Properly Administrate Contractor Retainage.
- Standard Contracts will be used.
- Streamline the Dispute Resolution Process and make it fair for all.
- Make the State Architects Position Classified with appropriate minimum qualifications.
For more information about the CRP, contact Rich Hobbs at (614) 486-6446 or rjh@agcohio.com.