Welcome to the

OCR Academy

Overview of Rules & Law

Craig WeiseConstruction Reform Program

Director

Brief History

• How we got here today– Previous attempts– Ohio Construction Reform Panel– Construction Reform Demonstration

Projects

• HB 153 passed in June 2011

Multiple Prime

A/E Owner CM

Prime Prime Prime

General Contracting (GC)

A/E Owner

GC

Construction Manager at Risk (CMR)

A/E Owner

CMR

Design-Build (DB)

A/E Owner

DB

House Bill 153

• Retained current project delivery methods–Multiple Prime– CM as Agent

• Allows alternative project delivery methods– General Contracting (single prime)– CM at Risk– Design-Build

• Adjusted certain thresholds

Administrative Rules

General Information• 8 Administrative Rules required by

H.B. 153– 7 Rules have been finalized and

currently in effect – 5-year Inflation Adjustment Rule for the

$200K competitive bidding threshold will be finalized later

Administrative Rules

General Information• Rules do not apply to ODOT

horizontal construction, Ohio Turnpike Commission & governmental entities with “home rule” statute or separate authority

Administrative Rules

Contract Form Rule (effective 12.26.11)

• Applies to CMR and DB projects• State of Ohio forms–Mandatory for state

agencies/universities–Optional for all other public

authorities

Administrative Rules

Contract Form Rule (effective 12.26.11)

• Industry standard forms–AIA, ConsensusDOCS, DBIA, EJCDC,

CMAA–Must be modified to comply with

state & local laws–Public authority may supplement

form with project specific requirements

Administrative Rules

Subcontract Form Rule (effective 12.26.11)

• Applies to CMR, DB & GC (single prime) projects

• Mandatory for all public authority projects

• Contractor must use form for any subcontracts

Administrative Rules

Subcontract Form Rule (effective 12.26.11)

• Public Authority and Contractor may supplement form with project specific requirements

• In the event a conflicts exists between the subcontract form and any other part of the contract, the subcontract form provisions prevail

Administrative Rules

Surety Bonding Rule (effective 12.26.11)

• Applies to CMR and DB projects• Contractor to provide separate

performance & payment bonds prior to execution of contract equal to 100% of the contract sum

Administrative Rules

Surety Bonding Rule (effective 12.26.11)

• If contract sum increases at any time, the penal sum of the bonds are to be increased the same

• If at any time prior to final payment the surety fails, the CMR/DB is to replace bonds within 21 days

Administrative Rules

Best Value Selection Rule (effective 2.2.12)

• Applies to CMR and DB projects• “Best Value” is a two-step selection

process–Step 1: RFQ Phase–Step 2: RFP Phase

Administrative Rules

Prequalification of Subcontractors Rule(effective 2.3.12)

• Applies to CMR and DB projects• Establishes framework for criteria in

evaluating prospective bidders on subcontracts

Administrative Rules

Prequalification of Subcontractors Rule(effective 2.3.12)

• Similar to 9.312 factors, but pre-bid• Public authority may require

additional criteria• Same criteria used for evaluating

self-performed work if approved by public authority

Administrative Rules

Electronic Advertising Rule (effective 2.2.12)

• Applies to CM and CMR projects• Supplement newspaper

advertisement requirements

Administrative Rules

Electronic Advertising Rule (effective 2.2.12)

• Public authority may electronically advertise:– Newspaper websites– State public notification website– Public authority’s own official website– Trade association websites

Administrative Rules

Electronic Advertising Rule (effective 2.2.12)

• Content may indicate where to find full description

Administrative Rules

Electronic Bidding Rule (effective 2.2.12)

• Applies to multi-prime & GC (single prime) projects

• Optional for state agencies/universities

• May require registration or subscription w/fee– State may waive fees for certified EDGE

vendors

Administrative Rules

Electronic Bidding Rule (cont’d)

• Notice of electronic bidding in advertisement

• Electronic copy of bid guarantee will be included

• Publish electronic bid tabs after bid opening

HB 153 Provisions

Other Construction Reform related changes

• Increased competitive bidding thresholds for small projects to $200K

• Threshold based on total project cost (153.55B)

HB 153 Provisions

Other Construction Reform changes (cont’d)

• Threshold based on total project cost (153.55B)

• “Letterhead bidding” based on process established by each public authority

• Threshold not increased for every public authority

Overview of Rules & Law

Questions:

Craig Weise, AIA, CCM, PMP, LEED APConstruction Reform Program Director

craig.weise@osfc.ohio.gov

Selection of Project Delivery Method PanelJeff Appelbaum/Steve Zannoni

Project Management ConsultantsThompson Hine LLP

Ken FisherTaft, Stettinius & Hollister LLP

Project Delivery Selection

Describe the process you follow when assisting owners (clients) in selecting a project delivery method.

Project Delivery Selection

What factors are considered in the decision making process and why are they important?

Project Delivery Selection

Share a recent example and what led that owner to select a particular delivery method for their specific project.

Project Delivery Selection

What is the biggest challenge for public owners when making this decision?