As part of an initiative to plug an $851 million hole in the State of Ohio's budget, the state's Construction Reform Panel has recommended elimination of a practice in which public agencies are required to hire a separate contractor for general construction, heating and cooling, plumbing, and electrical work. The Ohio Construction Reform Panel noted that using a single prime contractor for a project could result in cost savings due to fewer lawsuits and in projects being completed faster. Click here to read the April 2009 report of the Panel.
Visit the website of the northern Ohio based News-Herald to read an editorial on Ohio's consideration of moving toward a single prime contracting model for construction.
The multiple prime contracting methodology, which is used by only a few states, is counter to trends in the construction industry toward more seamless integration of all parties in the process. This trend toward more efficient systems is characterized by what is known as Integrated Project Delivery (IPD).
Integrated Project Delivery is defined as a "project delivery approach that integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to reduce waste and optimize efficiency through all phases of design, fabrication and construction." (AIA California Council)
The multiple prime contracting model also is not consistent with principles embedded in what is known as Lean Construction. Visit the website of the Lean Construction Institute for more information.
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