Proponent Testimony - Beth Lear, Associated Builders and Contractors of Ohio (March 3, 2021)

Summary

Proponent testimony dated March 3, 2021, from Beth Lear, Vice President of Government Affairs for Associated Builders and Contractors of Ohio, to the Ohio House of Representatives Commerce and Labor Committee and Chair Dick Stein. The testimony says the organization's members support a bill that extends the current Prompt Payment Act to construction owners, who the testimony says sometimes withhold payment for completed work. It says the bill provides an exception where there are disputed liens and claims, and provides for a possible award of attorney fees for the prevailing party. It asks the committee to favorably consider the bill so contractors, subcontractors and suppliers are paid in a reasonable amount of time.

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Full text

March 3, 2021

Ohio House of Representatives Commerce and Labor Committee
Chair Dick Stein
From: Beth Lear, Vice President of Government Affairs, Associated Builders and Contractors of Ohio

House Bill 380 – Proponent Testimony

Chair Stein, Vice Chair Johnson, Ranking Member Lepore-Hagan and Members of the Committee,

Good afternoon. My name is Beth Lear. I am Vice President of Government Affairs for Associated
Builders and Contractors of Ohio. Our members support House Bill 68.

This legislation represents an extension of the current Prompt Payment Act which has proven to be an
effective tool in facilitating the proper and prompt payment of subcontractors and suppliers in the
construction industry. The result? Ohio has avoided, in many cases, disputes and litigation.

Too often, construction owners assert their superior position by withholding payments for properly
completed work with the only recourse being litigation, which forces contractors to incur legal fees and
expenses to secure payment and reduces the net recovery of such contractors.

The bill does not place construction owners at a disadvantage since it specifically provides an exception
where there are disputed liens and claims. Moreover, contractors must carefully consider whether to
assert a claim since the bill provides for a possible award of attorney fees for the prevailing party.

We hope you agree House Bill 68 is fair and will positively affect Ohio businesses, our economy and civil
justice system. The legislation simply applies the same requirements to owners that the Prompt Pay Act
applies to contractors and project managers.

On behalf of the hundreds of contractors, subcontractors, suppliers and tradesmen and women who are
members of the Associated Builders and Contractors of Ohio, we ask you to favorably consider House
Bill 68 to help these men, women and businesses get paid in a reasonable amount of time.

Thank you.


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