Proper Use of Bid Alternates.
May 1, 2017

Bid alternates are components of a construction project that are not included in the base price of a bid or proposal.  Alternates are called out separately on the request for proposals or bid form, along with a request for pricing aside from the contractor’s base bid.  In most cases, the owner’s decision to include an alternate in the project is not determined until the time of the contract award.


Proper insurance is a crucial risk management tool for contractors, design professionals and project owners. Each is generally required by contract, statute or sense of self-preservation, to purchase and maintain appropriate insurance coverage. Since everyone has insurance, it is easy to assume that most risks on a construction project are covered. The purpose of this article is to correct that misperception by describing the typical scope of protection offered by three forms of insurance commonly found on a construction project: Commercial Liability Insurance, Builders Risk Insurance, and Professional Liability Insurance.


Over the past several years public authorities have increasingly relied upon Public-Private Partnerships as a delivery model for large-scale infrastructure projects. This trend will continue, with more and more projects being funded, designed, constructed and operated through a partnership between the public owner and private investors. All industry players, including owners, contractors, designers and sureties have a stake in understanding the structure of a P3, through which their role and relative risks become clear.


In 2013, the Engineers Joint Contract Documents Committee (“EJCDC”) issued updated construction contract documents.  In addition to a general reorganization and updates to the insurance and bond provisions, the EJCDC made important modifications to the General Conditions’ change order and claims provisions. The EJCDC’s modifications create a number of pitfalls for those who do not take note of these changes and modify their project administration processes accordingly.

Industry Update: Final Ohio Budget Includes Changes to Public/Private Urban Renewal Projects.


Governor Kasich signed his final two-year stated budged on June 30, 2017.  The budget includes an amendment to Chapter 725 of the Ohio Revised Code, which governs Urban Renewal Projects.  In an urban renewal project, a municipality and a developer create a development agreement to improve blighted areas.  After commencement of the development, the developer will make service payments instead of taxes.  The service payments are based on the increased value of the property resulting from the development.  The amendment clarifies that environmental remediation is an allowable cost, regardless of whether the land is publicly or privately owned.  The final budget is set to become law in late September 2017.  Here is a link to the 2018/2019 Operating Budget text.

Industry Update:  Grant Medical Center adding fourth floor in planned 2 year $17.4 million project.

Site Selection Magazine Announces That Columbus Region Ranks No. 8 in Top Metro Areas List


Site Selection magazine put the Columbus Region in the No. 8 spot for the Top 10 Metro Areas list, measured by the new and expanded facilities in the region during 2016.  Today's announcement marks the fifth year in a row that Site Selection put the Columbus Region among the nation's top ten.


The magazine also announced that Ohio had earned the No. 2 spot in the Governor's Cup state ranking due to the state's 515 new projects.


Read more here...


City of Columbus Proposes Package of Incentives for Kaufman Development's Franklinton Development


The City of Columbus voted to authorize the Department of Development to enter into an agreement with The Gravity Project, LLC, an affiliate of Kaufman Development.  Under the agreement, the City would provide a package of incentives valued at close to $4 million as part of Kaufman's plan to redevelop the sites of the former Wasserstrom National Office Warehouse and Phillip's Original Coney Island, located in the Franklinton area.


As described in the legislative text, the City’s proposal includes three separate incentives: (1) $800,000 toward streetscape improvements on Gay and Anson streets, after turning over the right-of-ways to the development team; (2) reservation of 200 public parking spaces in a 564-space garage at $10,000 per space; and (3) the City will provide Kaufman with $1 million contingent on affordable rental options.


Legislative Text Here.


Kaufman's design team for the project includes NBBJ and EMH&T.


Design Released for Dublin Branch of Columbus Library


While the design has not yet been approved by the City of Dublin, NBBJ released its design for a new 41,000 square-foot breach of the Columbus Library. Turner Construction Co. is expected to begin work later this year.


AGCA Expecting Another Strong Year


The Associated General Contractors of America reported that, based on a national survey, 73 percent of construction firms plan on continued growth in 2017.


I-71 Bridge, Ohio's Tallest, Nears Completion


After six years traffic is finally moving without construction obstacles on the Interstate 71 bridge over the Little Miami River.  The 2,300-foot bridge, known as the Jeremiah Morrow Bridge, was built by Kokosing Construction; Omnipro Services performed site services; and HNTB designed the replacement structure.

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