Pandemic Darlings The pandemic economy, in original documents
Home Source documents Proponent Testimony on H.B. 380 - Associated General Contractors of Ohio (February 5, 2020)

Proponent Testimony on H.B. 380 - Associated General Contractors of Ohio (February 5, 2020)

Summary

Proponent testimony on H.B. 380 to the House Commerce and Labor Committee, presented on February 5, 2020 by Andrea Ashley, Vice President of Government Relations, Associated General Contractors of Ohio. The testimony states support for House Bill 380, legislation that would create a prompt pay law for private owners of construction projects. It states that Ohio law stipulates that payment on approved estimates filed with the public owner are required to be made within 30 days. It also states an understanding that an amendment is being offered to change the existing 35-day payment term of H.B. 380 to 30 days, a change the association supports.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Proponent Testimony on H.B. 380 - Associated General Contractors of Ohio (February 5, 2020).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-02-05-commerce-labor-testimony-hb380associatedgeneralcontractors-1f88ba4601/, SHA-256 7c8829b73350754fed14123471fd4ff152067e84109731e9057da2600769f8c7.

Full text

                                     HOUSE COMMERCE AND LABOR COMMITTEE
                                       PROPONENT TESTIMONY ON H.B. 380

                                       Presented on February 5, 2020 by:
                              Andrea Ashley, Vice President of Government Relations
                                     Associated General Contractors of Ohio

Chair Manning, Vice Chair Dean, Ranking Member Lepore-Hagan and Representatives on the House
Commerce and Labor Committee:

Thank you for the opportunity to share the Associated General Contractors (AGC) of Ohio’s support of
House Bill 380, legislation that would create a prompt pay law for private owners of construction
projects.

AGC of Ohio is a construction association that represents large and small, union and open shop (non-
union), commercial building and industrial contractors from across the state. Our members work in
both the public and private arena; they construct hospitals, offices, schools, wastewater treatment
plants, warehouses and manufacturing facilities, and a host of other vertical structures.

Commercial construction is a high-risk, high-volume, and low-margin industry – especially on the vertical
building side. Cash flow is extremely important. Money is necessary to compensate workers, pay
subcontractors and suppliers, procure material and equipment, fund new projects, and finance other
company functions. It can impact a construction company’s ability to obtain appropriate bonding and
insurance, as well as a company’s ability to be considered for future construction projects.

The Ohio Revised Code contains several prompt pay laws. Ohio has a Prompt Pay Act that requires a
contractor to make timely payments to subcontractors on both public and private construction projects
[R.C. 4113.61(A)]. Laws also exist for the prompt payment of contractors by public owners (R.C. 153.12-
153.14; R.C. 5525.19 for ODOT). Notably missing is a statute requiring prompt payment from a private
owner to a contractor once a request for payment is made, which H.B. 380 addresses.

Ohio law stipulates that payment on approved estimates filed with the public owner are required to be
made within 30 days (R.C. 153.14). It is our understanding there is an amendment being offered to
change H.B. 380’s existing 35-day payment term to 30 days, a change that AGC of Ohio supports. Our
association also has no issue with adjusting the bill’s language to clarify that the legislation only applies
to private non-residential construction projects since prompt pay laws already exist for public projects.

Give contractors another tool in their toolbox to ensure cashflow, as well as protect the viability of their
current and future projects and those working on them. We urge this committee to support and
favorably report H.B. 380 – with the 30-day payment term.

_____________________________________________________________________________________
Associated General Contractors of Ohio · 1755 Northwest Blvd · Columbus, OH 43212 · Ph 614.486.6446 · Fax 614.486.6498 · www.agcohio.com

File and source

File
2020-02-05_commerce-labor_testimony_hb380associatedgeneralcontractors.pdf
Size
144,086 bytes
SHA-256
7c8829b73350754fed14123471fd4ff152067e84109731e9057da2600769f8c7
Our copy
2020-02-05_commerce-labor_testimony_hb380associatedgeneralcontractors.pdf
Original
No public link identified.
Back to top