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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.


Construction Industry Trends and Predictions Through 2021 and Beyond: Insurance and Emerging Threats

A 2021 survey identified three key issues impacting the construction industry in 2021: (1) the financial health of contractors; (2) the continuing risk of the pandemic; and (3) technology driving productivity, but also increasing the risk of cybersecurity threats. With this backdrop, insurance premiums in the construction industry are generally on the rise in 2021.

Senate Bill 39 Allows Up to $100 Million in Business Incentive Credits for Transformational Mixed-Use Development in the State of Ohio

Ohio Governor Mike DeWine signed Senate Bill 39 on December 29, 2020, which created a new tax credit applicable to insurance premium taxes. This tax credit is designed to provide funding for a transformational mixed- use development or “TMUD” in the state of Ohio.

Medicaid Announces Next Generation of Managed Care Organizations

For the first time since 2005, the Ohio Department of Medicaid (“ODM”) made significant changes to the structure of the Medicaid program by finalizing the Medicaid Managed Care Procurement process. The Procurement process began in 2019 at the behest of Governor Mike DeWine who had a goal to make Medicaid managed care more focused on the health and well-being of individuals.

BMD Appellate Win Clarifies Waiver of Contractual Right to Arbitrate

Brennan, Manna & Diamond, LLC attorneys David M. Scott, Lucas K. Palmer, and Krista D. Warren prevailed before the United States Court of Appeals for the Sixth Circuit regarding if/when a party waives a contractual right to arbitrate. Borror Property Management, LLC v. Oro Karric North, LLC, No. 20-3146 (the “Decision”).

Relief for Ohio Under the Federal American Rescue Plan Act

On March 11, 2021, President Biden signed the American Rescue Plan Act (the “Act”) — a $1.9 trillion COVID-19 relief package — a significant portion of which will be directed to the State of Ohio to support economic recovery, as outlined below.