New Construction Contract Requirement for Public Projects
Client Alert
A new Ohio law imposes a disclosure requirement that will affect how public authorities prepare construction contracts—and what happens if they do not comply.
Construction contract negotiations typically begin with an industry standard form agreement. Common examples include the American Institute of Architects (AIA) forms and ConsensusDocs.
Ohio Senate Bill 262 takes effect on September 17, 2026. Under the new law, when a public authority modifies an industry standard form agreement, it must show those changes using strikethrough and underline formatting. If the public authority fails to mark these changes, the modifications are void, and the original standard form language governs.
While industry standards can assist in streamlining negotiations, each construction project comes with its own unique risks and considerations that might call for deviations, small or large, from the “standard” language. More importantly, deviations from standard language are typically negotiated for significant reasons—making compliance with this new marking requirement essential.
For assistance negotiating your next construction contract or implementing procedures to comply with this new requirement, please contact BMD Member Bob Hager at rahager@bmdllc.com or BMD Attorney Jacob Davis at jrdavis@bmdllc.com.