Monday, June 27, 2011

Ohio Legislature Reaches Compromise on Multiple Prime Contracts and Prevailing Wages

In a late night session on Monday, June 27, 2011, a legislative budget conference committee with members from the Senate and House approved two significant changes to Ohio's public construction regulations as part of the state's budget:
  • Multiple Prime Contracts:  Current Ohio law requires that public agencies award separate contracts dealing with separate trades instead of having a general contractor coordinate the work of the subcontractors.  The change would permit award of a single prime contract under certain conditions, which is the practice most agencies across the country follow.  More later as the details of the conference committee compromise becomes available.
  • Prevailing Wages:  The threshold for the applicability of prevailing wages would increase from $80,000 to $125,000 in 2012 and to $250,000 on July 1, 2013, far below the $5 million threshold proposed by Ohio Governor John Kasich.
The full Senate and House are scheduled to vote on the budget this week, in time for the Friday, July 1, 2011 start of the new fiscal year.
Mike Purdy's Public Contracting Blog 
© 2011 by Michael E. Purdy Associates, LLC

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