Effective September 17, 2026, Ohio Senate Bill (“S.B. 262”) establishes new requirements for identifying changes made to certain industry-standard published construction contract forms used for public construction projects. The legislation amends several provisions of the Ohio Revised Code, including R.C. 9.334, R.C. 153.12, R.C. 153.501, R.C. 153.503, and R.C. 153.693. The new requirements are intended to make it clear when a public construction contract departs from the language of an industry-standard form.
S.B. 262 applies when an applicable industry-standard published construction contract form is used and the form is modified. Industry-standard forms may include, for example, commonly used construction documents published by organizations such as the American Institute of Architects (AIA), ConsensusDocs, and the Engineers Joint Contract Documents Committee (EJCDC).
Under the amended provisions, when an applicable industry-standard form is used, alterations must be identified in one of several specified ways. Changes may be shown by striking through and underlining modifications to the original language, by cross-referencing supplemental conditions, or by including supplemental conditions that identify the section or sections of the standard form being altered.
The new requirements apply to several types of public construction contracts and related arrangements. Amended R.C. 9.334 addresses construction management contracts involving construction managers at risk. Amended R.C. 153.12 addresses certain public improvement contracts using an industry-standard published construction management contract form. Amended R.C. 153.501 addresses certain contracts and subcontracts involving construction managers at risk, design-build firms, and general contracting firms. Amended R.C. 153.693 addresses design-build services contracts. S.B. 262 also requires applicable rules adopted by the Ohio Facilities Construction Commission (“OFCC”) to include similar requirements for prescribed industry-standard contract and subcontract forms. The legislation does not apply to Ohio Department of Transportation contracts for road, highway, or bridge projects.
The consequences of failing to properly identify a modification are significant. Under the amended provisions, an alteration that is not identified in accordance with the statutory requirements is void and without effect, and the original language of the industry-standard forms governs. The original language of the standard form prevails instead. As a result, a modification that the parties intended to include in a contract may not be enforceable if it was not identified in the manner required by the statute.
Contractors and other businesses involved in Ohio public construction projects should review the entire contract package rather than relying solely on the name of a familiar industry-standard form. Supplemental conditions, addenda, and project-specific provisions may modify the standard language. Those modifications should be reviewed to determine whether they are clearly identified and incorporated into the contract as required.
Public authorities, construction managers at risk, design-build firms, and general contracting firms using applicable industry-standard forms should also review their contracting procedures to account for the new requirements. The OFCC is required to adopt rules addressing the use of prescribed industry-standard contract and subcontract forms, including requirements for identifying alterations to those forms.
S.B. 262 took effect September 17, 2026. Businesses involved in Ohio public construction should be aware of the new requirements when preparing, reviewing, and negotiating applicable construction contracts.
Read the full text of Senate Bill 262 on the Ohio Legislature website.
This document is provided for informational purposes only and should not be relied upon as legal or tax advice.