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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.


Quiet Hours Texts and TCPA Claims: Consent Remains King as Courts Divide on Text Messages

Businesses face increasing TCPA lawsuits over off-hours marketing texts, but recent court decisions highlight strong defenses. Clear consumer consent and updated terms and conditions can defeat many claims, while a growing number of courts are finding that text messages are not “telephone calls” under the statute. Proactive compliance measures, including clickwrap agreements and forum-selection clauses, are critical to reducing risk.

New Ohio Reporting Requirements for Non-Residential Contractors

Ohio’s E-Verify Workforce Integrity Act, effective March 19, 2026, requires all nonresidential construction companies, subcontractors, and labor brokers to use E-Verify to confirm employee work eligibility on projects across the state. The law applies regardless of company size and carries financial penalties and potential restrictions on future state contracts for noncompliance. Some uncertainty remains around requirements for existing employees, making early compliance planning important.

DOT Non-Domiciled CDL Rule

A new rule from the Federal Motor Carrier Safety Administration (FMCSA) will significantly narrow eligibility for non-domiciled Commercial Driver’s Licenses (CDLs) beginning March 16, 2026. The rule limits eligibility to holders of H-2A, H-2B, and E-2 visas and eliminates Employment Authorization Documents (EADs) as qualifying proof of work authorization. As a result, many lawfully present and work-authorized immigrants, including refugees, asylees, DACA recipients, and Temporary Protected Status holders, will no longer be able to obtain or renew a non-domiciled CDL. The change is expected to affect roughly 194,000 drivers nationwide and has prompted multiple legal challenges, including a pending emergency stay request before the United States Court of Appeals for the District of Columbia Circuit.

FinCEN Residential Real Estate Reporting Rule Now in Effect

FinCEN’s new Residential Real Estate Reporting Rule, effective March 1, 2026, requires certain real estate transfers to be reported to combat financial crimes. Transfers of residential property to entities or trusts without financing may require a Real Estate Report.

Department of Education Proposes Redefinition of “Professional Degree,” Excluding Nursing and Limiting Graduate Loan Borrowing

The U.S. Department of Education has issued a Notice of Proposed Rulemaking that would redefine “professional degree” programs under the One Big Beautiful Bill Act. The proposal excludes nursing from the recognized list and would impose new borrowing limits for graduate students while eliminating the Grad PLUS program. Public comments are due by March 2, 2026.