Welcome to the OCR Academy

1. Welcome to the OCR Academy

2. Overview of Rules & Law Craig Weise Construction Reform Program Director

3. Brief History • How we got here today • Previous attempts • Ohio Construction Reform Panel • Construction Reform Demonstration Projects • HB 153 passed in June 2011

4. Multiple Prime A/E Owner CM Prime Prime Prime

5. General Contracting (GC) A/E Owner GC

6. Construction Manager at Risk (CMR) A/E Owner CMR

7. Design-Build (DB) A/E Owner DB

8. 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

9. 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

10. Administrative Rules General Information • Rules do not apply to ODOT horizontal construction, Ohio Turnpike Commission & governmental entities with “home rule” statute or separate authority

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. Administrative Rules Electronic Advertising Rule(effective 2.2.12) • Applies to CM and CMR projects • Supplement newspaper advertisement requirements

21. 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

22. Administrative Rules Electronic Advertising Rule(effective 2.2.12) • Content may indicate where to find full description

23. 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

24. 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

25. 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)

26. 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

27. Overview of Rules & Law Questions: Craig Weise, AIA, CCM, PMP, LEED AP Construction Reform Program Director craig.weise@osfc.ohio.gov

28. Selection of Project Delivery Method Panel Jeff Appelbaum/Steve Zannoni Project Management Consultants Thompson Hine LLP Ken Fisher Taft, Stettinius & Hollister LLP

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

30. Project Delivery Selection What factors are considered in the decision making process and why are they important?

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

32. Project Delivery Selection What is the biggest challenge for public owners when making this decision?