Complete Story
06/05/2025
[Duplicate] MCAO Update: Prompt Pay Hearing and Retainage Progress!
MCAO Members:
House Bill 288, our Prompt Pay bill, had its second hearing in from of the House Small Business Committee on Tuesday June 3. MCAO's own Kristopher Gray testified in support of the legislation. You can see his testimony with the link below. Kris was the first witness to address the committee so it can be found right at the start. Additional proponent testimony was offered by the National Electrical Contractors Association, National Federation of Independent Businesses, Associated General Contractors of Ohio, Construction Employers Association, Ohio Roofing Contractors Association, Contractors Assistance Association, and the Ohio Masonry Association. While a number of committee members expressed their support for the bill, others questioned the State getting involved in private contracts. Kris did a terrific job of handling this question as did other witnesses who made sure to explain how contracts work in the construction industry. We are working with the Chair to continue hearing the bill with opponents likely getting their chance to speak in the next couple of weeks.
Public improvements contract retainage
R.C. 153.12, 153.13, 153.14, 153.63
Requires a public authority's retainage amount on partial payments on a public improvements contract to be 4% or less for 100% of the contract, rather than 8% on the first 50%, and 0% on the second 50%, of the contract.
Prohibits contractors from paying subcontractors at a retainage rate lower than the retainage rate being paid to the contractor by the public authority.
Eliminates provisions of law requiring the public authority to deposit the retained amount in an escrow account.
Senate only - Requires that funds retained on a public works contract be paid to the primary contractor within 30 days of substantial completion of the project, withholding only that amount reasonably necessary to assure final completion of it.
Executive only - Clarifies that any retained funds and the interest accrued by the funds is property of the contractor and must be paid to the contractor no later than 30 days after the date of substantial completion of the work.
Senate replacement - Replaces the Executive provision with one that clarifies any retained withheld funds and interest accrued thereon be paid to the primary contractor no later than 30 days after the date of final completion of the project.
Maryellen K. Corbett
Attorney at Law
614-621-7754 Office
614-621-0010 Fax
Calfee, Halter & Griswold LLP
1200 Huntington Center
41 South High Street
Columbus, OH 43215-3465
Thanks!
Valerie Pope
