Ohio Senate Bill 262, modifying the requirements for public works construction contracts, went into effect on September 17, 2026. Under Senate Bill 262, modifications to industry-standard construction contracts by public authorities are void unless the modifications are shown through new formatting requirements.
The new law applies to any contract entered into on or after September 17, 2026. Contracts already in effect are not subject to the new requirements.
Why Was The Law Changed?
Construction contracts often use standard contract forms published by organizations such as the American Institute of Architects (AIA), ConsensusDOCS, The Engineers Joint Contract Documents Committee (EJCDC), and the Design-Build Institute of America (DBIA). These forms provide an understood starting point that parties may amend to suit the particular needs of any given project.
Problems may arise when these standard forms are modified without those modifications being apparent. Senate Bill 262 addresses this problem by requiring applicable modifications to be readily identifiable.
What Does Senate Bill 262 Require?
- Alterations to an industry-standard published contract form must be identified by striking through deleted language, underlining added language, by cross-referencing supplemental conditions, or by using supplemental conditions that cross-reference the section or sections being altered.
- An alteration that is not identified in one of these ways is void and without effect, and the original language of the standard form controls.
- The requirements apply to covered public improvement, construction-manager-at-risk, design-build, general contract, and subcontract forms addressed by the amended statute.
Critchfield’s Construction Law Practice Group assists public authorities and construction professionals with contract drafting and review. For help updating your forms or reviewing a proposed agreement for compliance with Senate Bill 262, please contact an attorney at Critchfield. We are happy to help you navigate these requirements and implement best practices.
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