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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.


No Surprises Act Update: Federal Judge Strikes Portions of the No Surprises Act

In a win for providers, a Texas federal court granted the Texas Medical Association’s (TMA) motion for summary judgment and struck down portions of a federal rule that establishes a reimbursement rate arbitration process between payors and providers under the No Surprises Act (NSA).

Ohio Modernizes and Improves its Laws Governing Limited Liability Companies

Effective Feb. 11, 2022, the Ohio Revised Limited Liability Company Act (“Revised Act”) now governs all limited liability companies formed under Ohio law. The law updates and replaces the existing LLC Act and has important implications for business owners in Ohio. Passage of the Revised Act makes Ohio one of only 16 states that permits the formation of “Series” LLCs. The legislation is intended to be one of the most progressive LLC acts in the country, but retains the terminology used in Ohio’s current LLC act.

Wondering What’s Happening with Telehealth Legislation in Ohio?

In December 2021, Governor DeWine signed into law HB 122, which will expand telehealth services in Ohio. The law takes effect in March 2022 and is in response to more patients relying on telehealth over the past two years during the height of the COVID pandemic, and more providers becoming comfortable with delivering services virtually. Telehealth is now a normalized healthcare delivery system nationwide. Beyond the safety benefits inherent in telehealth services, telehealth has made healthcare more accessible and more affordable for more people.

Ohio Loan Programs to Boost Minority-Owned Businesses

Ohio has created two new loan programs to enhance growth of minority and women owned businesses in Ohio. The Ohio 2022-2023 operating budget includes the Women’s Business Enterprise Loan Program and Ohio Micro-Loan Program.

Supreme Court Upholds CMS Vaccination Mandate for Health Care Providers

Last week, the U.S. Supreme Court struck down the COVID-19 vaccine-or-test mandate for employers with more than 100 employees (the OSHA ETS) and upheld the COVID-19 vaccination mandate for employees of health care providers who receive Medicaid or Medicare funding (the CMS rule).