Wednesday, May 11, 2011

Beck Introduces Legislation Regarding Change Orders on State and Local Projects

COLUMBUS—State Representative Peter Beck (R-Mason) recently introduced legislation to limit the magnitude of change orders on local and state improvements required to be competitively bid.

House Bill 176 would limit “change-in-scope” change orders that are not essential to the purpose of the project, limiting them to less than $50,000 or 2.5 percent of the total contract price for the improvement.

“I am pleased to introduce House Bill 176 to the Ohio House of Representatives due to the importance I see on limiting “change-in-scope” change orders and staying aligned with the original intent of the construction project,” stated Rep. Beck. “This is an important piece of legislation that will aid both state and local construction projects for the state of Ohio and is an opportunity to better utilize taxpayer dollars.”

Additionally, this bill would require an annual report to be sent from the contracting authority to the director of administrative services, the head of the state agency for which the improvement was made. It would not apply to federally mandated requirements that did not exist at the time of the original contract award, unforeseen contingencies, or any circumstances that would create a life, safety or health-threatening situation.

House Bill 176 has been assigned to the House Commerce and Labor Committee, where it will undergo further discussion.
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