Pandemic Darlings The pandemic economy, in original documents
Home Source documents Proponent Testimony - H.B. 68, Andrea Ashley, Associated General Contractors of Ohio (March 3, 2021)

Proponent Testimony - H.B. 68, Andrea Ashley, Associated General Contractors of Ohio (March 3, 2021)

Summary

Proponent testimony on H.B. 68 to the House Commerce and Labor Committee, provided on March 3, 2021 by Andrea Ashley, Vice President of Government Relations, Associated General Contractors (AGC) of Ohio. The testimony says House Bill 68 would create a prompt pay law for private owners of construction projects, and that the Ohio Revised Code has no statute requiring a private owner to pay a contractor promptly after a request for payment. It responds to committee questions on payment terms, citing Sec. 4113.61 (A)(1)(a), and on retainage, citing Sec 4113.61(A)(1)(b). It thanks Representatives Cross and Sweeney and urges support of the bill.

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 - H.B. 68, Andrea Ashley, Associated General Contractors of Ohio (March 3, 2021).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-03-03-commerce-labor-testimony-hb68proagc-ee1fe8eafe/, SHA-256 ec97f627962f89682f9edf00c55439bf3f520e147b5d97d45146acd5bea4e584.

Full text

                                     HOUSE COMMERCE AND LABOR COMMITTEE
                                        PROPONENT TESTIMONY ON H.B. 68

                                          Provided on March 3, 2021 by
                              Andrea Ashley, Vice President of Government Relations
                                  Associated General Contractors (AGC) of Ohio

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

Thank you for the opportunity to share the AGC of Ohio’s support of House Bill 68, 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, mixed-use developments, and a host of other vertical
structures.

Commercial construction is a high-risk, high-volume and low-margin industry – particularly on the
vertical building side. Cash flow is extremely important. Money is necessary to compensate workers,
pay subcontractors and suppliers, procure materials and equipment, fund new projects, and finance
other company functions. Cash flow 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. 68 addresses.

This committee had questions during sponsor testimony about contractual obligations and payment, as
well as retainage on private construction projects that we would like to address:

    •     Payment: Contractors and owners sign contracts prior to the start of a project that stipulates
          payment terms. Those terms are tied to project milestones/completion of work, building
          inspection approval, architect/engineer certification, and/or the approval from an owner’s
          representative. H.B. 68 recognizes this under Sec. 4113.61 (A)(1)(a).



_____________________________________________________________________________________
Associated General Contractors of Ohio · 1755 Northwest Blvd · Columbus, OH 43212 · Ph 614.486.6446 · Fax 614.486.6498 · www.agcohio.com
    •     Retainage: Retainage is a separate issue than prompt pay. The bill allows for the withholding of
          retainage from payments to contractors in Sec 4113.61(A)(1)(b). While Ohio has laws governing
          the use of retainage on public construction projects, there is no related statute for privately
          owned or financed projects. Retainage is often used by owners and higher-tier contractors to
          ensure a contractor or subcontractor will return to the job to complete work or address minor
          issues at the end of the job.

We appreciate Representatives Cross and Sweeney’s continued efforts with this bill, and this committee
for its consideration. 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 you to
support H.B. 68.




_____________________________________________________________________________________
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
2021-03-03_commerce-labor_testimony_hb68proagc.pdf
Size
158,130 bytes
SHA-256
ec97f627962f89682f9edf00c55439bf3f520e147b5d97d45146acd5bea4e584
Our copy
2021-03-03_commerce-labor_testimony_hb68proagc.pdf
Original
No public link identified.
Back to top