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Welcome to the OCR Academy

Welcome to the OCR Academy. Overview of Rules & Law Craig Weise Construction 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.

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Welcome to the OCR Academy

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  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?

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