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ARTICLE · 13 SEPTEMBER 2023

Key Changes To Ohio Construction Law For Certain Public Entities Beginning October 3, 2023

Bricker Graydon
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Effective October 3, 2023, the threshold amount for rejecting bids when they exceed the original construction estimate will increase for certain Ohio public entities.

United StatesReal Estate and Construction
Laura J. Bowman
Laura J. Bowman
Mark Evans, P.E.
Mark Evans, P.E.
Brock Miskimen
Brock Miskimen
Casey Rieth
Casey Rieth
Leah Thorsen
Leah Thorsen

Effective October 3, 2023, the threshold amount for rejecting bids when they exceed the original construction estimate will increase for certain Ohio public entities. Previously, Ohio Revised Code (ORC)153.12 specified that no public owner, including the State of Ohio (State), could award a contract to a bidder whose bid exceeded 10% of the construction estimate. Effective October 3, 2023, only the State must reject bids that exceed 10% of the estimated contract amount, while a "county, township, municipal corporation, school district, special purpose district, or other political subdivision or a public board, commission, authority, or instrumentality of the political subdivision" must reject bids that exceed 20% of the estimated contract amount. This change in the law does not impact ORC Chapter 5525 regarding bids that exceed 5% for road improvements or the authority of the Director of the Department of Transportation.

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