House Bill 497 (HB 497) took effect on April 9, 2025, and introduced various changes to the laws governing counties in Ohio. Below are some key changes in HB 497 that impact county construction projects.
The legislation provides a list of general contract provisions that counties must not agree to, including but not limited to, indemnification, binding arbitration, venue provisions mandating litigation outside the county, provisions inconsistent with Ohio’s Public Records Act, and a limitation of the ability to recover for the cost of a replacement contractor. Furthermore, counties cannot agree for vendors to limit their liability “for any direct loss to the county for bodily injury, death, or damage to property of the county caused by the negligence, intentional or willful misconduct, fraudulent act, recklessness, or other tortious conduct of a person or a person’s employees or agents….” If one or more of these provisions are included in a contract with a county, the provision is void, and the remainder of the contract remains enforceable without the voided provision. Additionally, the law stipulates that contracts with an Ohio county must be construed in accordance with Ohio law, notwithstanding any provision to the contrary. The prohibition on these provisions is not retroactive to county contracts, effective before the new law took effect on April 9, 2025.
This legislation also creates an exemption from the requirement for counties to obtain detailed plans, specifications, estimates, and bills from design professionals for "minor repairs.” A minor repair is defined as “the reconstruction or renewal of any part of an existing building for the purpose of its maintenance when the work has limited impact on access, safety, or health.”
For construction projects involving a county courthouse or jail with an estimated cost of $75,000 or less, county commissioners are no longer required to obtain approval from the sheriff, probate judge, clerk of the court of common pleas, and an individual appointed by the judge of the court of common pleas.
A county prosecutor must now only approve contracts for improvements of more than $20,000 rather than $1,000 as was the law previously. Additionally, following a recent change in the law regarding the competitive bidding threshold, HB 497 raises the threshold amount for county notice requirements related to purchases, leases, and construction agreements and for guaranty and bonding for construction agreements from $50,000 to the amount specified in Revised Code Section 9.17, which is $77,250 for the year 2025 and increases annually by 3%.
Counties and entities contracting with counties should consult legal counsel to ensure compliance with the new requirements.
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