May 3, 2022

FEATURED

ODOT Releases 2021-2022 Inflation Factors

According to C&MS 109.05.B Negotiated Prices, ODOT’s Office of Construction Administration will publish factors to adjust prices for projects awarded in previous years.

FACTOR FOR 2021 to 2022: 12.1%

The following factor may be used to adjust agreed unit prices obtained from the Summary of Contracts Awarded and average unit prices awarded on three different projects with similar work and quantity. Unit prices in 2022 should not be higher than this adjustment factor unless supported with reasonable documentation of cost from the contractor.

There are several reasons the inflation factor is higher this year:

• Higher diesel costs over the last year impacted nearly every item of work either directly on the job site or through the transport of materials in the supply chain.

• Higher liquid asphalt costs had a big impact on ODOT’s composite index since Asphalt pay items make up between 25%-30% of our Program.

• Sharply higher steel product costs; and numerous material delivery delays.

The factor may not be used to adjust prices computed by the Office of Estimating or cost analysis of labor, equipment and material.

The inflation factor is calculated by the Office of Estimating. It is the Chained Fisher Construction Cost Index for the last four quarters of bids received by ODOT.

Click here for a spreadsheet of all inflation factors calculated since 2013.

Please contact Chris Engle if you have any questions. 

 
NEWS

Don’t Forget to Vote Today! 

Today is Ohio’s primary election day. Offices up for consideration include all statewide offices – Governor, Secretary of State, Treasurer, Attorney General, and Auditor. In addition, candidates for the US Senate seat being vacated by Senator Rob Portman will also be considered as well as all of Ohio’s congressional delegation. Admittedly this is an unusual year as only the statewide and federal offices will be considered now and we will likely have another primary in August to decide Ohio House and Senate races. Either way, get out and vote. All the offices being considered tomorrow can have an impact on the heavy/highway industry and you need to have your voice heard.


ODOT Clarifies Requirements of PN-40 - Russian Materials Ban

Some of our members have reached out to Chris Engle regarding ODOT’s new Proposal Note 40, which deals with materials and supplies from Russia. Nathan Fling, ODOT’s Administrator of the Office of Contracts, responded to those questions below in blue:

There are a few details that we are working to resolve, but I wanted to provide as much information as I could now and will supplement these responses as soon as we are able.

1. I am not a computer expert by any stretch, but as I understand it, emails may take a rather circuitous route to their final destination. Some State data would be routinely included in those emails. If my understanding is accurate, a contractor would have no control over that. I don’t think this was the intent, but could you please clarify what data is of concern?

Routine email that is exchanged between a contractor and the Department is not considered to be “state data” for the purposes of Executive Orders 2019-12D and 2022-02D, so email routing should not pose a problem. We have reached out to the Department of Administrative Services for additional insight on what constitutes “State data”, and I will follow-up when I receive that information.

2. I have been told that the raw materials for glass beads for epoxy pavement markings originate in Russia. I believe production has ceased, but is this a concern of this proposal note? Is this one of the items that will require a waiver?

We were not previously aware of this situation, so we will withhold comment until we know more about the specific circumstances.

3. In many cases, a final decision on subcontractors has not been made this early in the project execution stage, and subs may be added throughout the contract. Will this require a revision to this document throughout the contract as subs are added? Will the Department accept the initial document with no subs until they can execute subcontract agreements with the prime?

We understand and anticipate that not all subcontract agreements will be in place at the time of contract execution. Therefore, there will be situations where the Affirmation & Disclosure forms may be submitted with only the prime contractor’s information listed. However, once subcontractor agreements are in place, the Affirmation & Disclosure forms should be updated and submitted to the Office of Contract Sales & Estimating.

4. Is this requirement for only subs or other vendors too?

The Affirmation & Disclosure forms require the name and location of the prime contractor and its subcontractors. Vendors need not be included.

5. “Location where services will be performed by Contractor” and/or “…performed by Subcontractor”. I assume this is the project location?

The location to be listed on the Affirmation & Disclosure forms is the address of the firm’s principal place of business. The Department of Administrative Services has indicated: “Disclose the principal location of business for the contractor and all subcontractors who are supplying services to the State under the proposed contracts.”

6. Not sure what is meant by “Location where services will be changed or shifted by the Contractor” and/or “shifted by the Subcontractor”.

“Shifted”, as I understand its intended meaning here, is when the company’s headquarters moved after the original location was disclosed on an Affirmation & Disclosure form. These spaces will only be used when the form is being resubmitted as an update to the original Affirmation & Disclosure form.

7. How is ODOT going to monitor this Proposal Note?

As this is a new requirement, the Department is evaluating how any monitoring or verification will occur.

If there are any other specific questions or concerns, please reach out to Chris Engle.


Upcoming OEPA/DEFA Webinars

Ohio Brownfields Funding Opportunities

Workplace Recycling: Let's Start a Program

A Deeper Dive into the Ohio Materials Marketplace

Ohio EPA's Regulations - What You Need to Know to Stay Ouf of Trouble!


National Work Zone Awareness Survey

A fitting effort during this week of construction safety awareness (National Construction Safety Week – May 2-6, 2022) would be sharing your experiences about highway work zones in our national affiliate, AGC’s survey. Please click on the following link to participate in the national survey. AGC and OCA will share the final results with our members. Thank you. Click here for national work zone safety survey


OCA Successfully Concludes 2022 Union Labor Negotiations

OCA’S Labor Relations Division (LRD) has successfully completed contract negotiations with the Carpenters, Cement Masons, Laborers, Teamsters Statewide, and Teamsters Local 436 Cleveland. All agreements are three-year successor agreements. We are in process of editing the new contracts before they are printed in PDF format. Once we have PDF copies, we will make them available in future newsletters and on the OCA website. Those who wish to order printed contract books may do so directly from the printers, once the contracts are updated. We will provide order details in future newsletters and on the website. Please click here for a copy of OCA’s May 1, 2022, Union Wage & Benefit Bulletin.

 If you have any questions about the new contracts or wages, please contact Mark Potnick in the OCA office.


OCA Membership Invited to Participate in Recruiting Event May 14

The Ohio Laborers Apprenticeship office is collaborating with The 200th RED HORSE Civil Engineering Squadron to host a recruitment event at their base on Saturday, May 14th from 7:45 am to 1:00 pm at Camp Perry in Port Clinton, Ohio. This event will provide a unique opportunity for contractors to recruit highly qualified individuals to the union construction industry.

With 500 Air Force construction engineers expected to attend, we encourage you to take advantage of this opportunity and set up an outreach table, share marketing materials, and speak to recruits directly.

To attend this event, please email Ohio Laborers’ Apprenticeship Coordinator, Vince Irvin at [email protected] by Friday, May 6th.

Event Address:

1200 N Camp Perry Eastern Road, Port Clinton, OH 43452*

* The front gate entrance is on Niagara Road.


Discover AGC Edge - A New Virtual Learnng Experience

AGC of America has recently announced four popular training topics are now being offered in an on-line format. Looking for new training opportunities in 2022? With AGC's live, instructor-led courses, it's never been easier to build your skill set and access the training you need. Whether you're looking to build your knowledge in BIM, lean, project management or supervisor training, these virtual programs provide the same learning experience and expert instruction as in-person programs.

  

LINKS
•   Current Ohio Contractor Magazine
•   Safety Resources
•   Labor & Employment Information
•   OCA President's Commentary

 

UPCOMING EVENTS
 

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