To avoid any conflict with the proposal, construction contractor mechanics’ liens always take precedence over a design professional’s lien, regardless of filing date.
The proposed Payment Assurance Program is modeled after the Brokers’ Lien codified in R.C. Ohio is the only state that offers no alternative payment protection. Unlike construction contractors, the work of Architects, Landscape Architects, Engineers, and Surveyors does not improve the physical real estate, and therefore a Design Professional cannot file a mechanics’ lien. American Council of Engineering Companies (ACEC)ĭesign Professionals in the construction industry have limited options when a commercial real estate owner does not pay for plans and specifications.Ohio Chapter of the American Society of Landscape Architects (OCASLA).Organizations working with AIA Ohio in support of SB49 include:
We await a fourth hearing to vote the bill out of Committee, and onto the Senate Floor. On Wednesday, March 31, 2021, the Senate Judiciary Committee invited Opponent Testimony on Senate Bill 49 at a third hearing, to create lien rights for Design Professionals. Payment Assurance Legislation for Design Professionals Capital funding via constitutional amendments is critical to the success of the construction industry, architecture firms and their employees.ĪIA Ohio urges members to vote no on Issue 1. If passed, this amendment will likely have a significant and devastating effect on the architecture profession by setting the threshold to approve project funding too high and making it too difficult to meet. We ask that when you vote on August 8, you vote in your best interest and in the best interest of the profession. Historically, constitutional amendments seldom pass by a significant margin, and many times, by only a few percentage points. They enable the improvement of infrastructure, schools, parks, and other essential public amenities. However, none of these would have passed if the proposed 60% threshold had been required.Ĭonstruction funding initiatives are vital to the growth and development of our communities. When bonds are needed for new infrastructure construction or capital improvements, Ohio’s constitution requires that citizens vote to approve the funding.īallot initiatives such as affordable housing loans and grants, Ohio’s Third Frontier Fund, and the Clean Ohio Fund are examples of programs that were approved by a majority of citizens of Ohio and have had positive impacts on the design and construction industry. This has required constitutional amendments to increase funding for many programs and issues including construction bonds. Ohio’s debt limit has been capped at $750,000 by its constitution since 1851. On Tuesday, August 8 th, Ohioans will have the opportunity to cast their vote on Issue 1, a proposal that seeks to require a 60% super-majority for passing any constitutional amendments in Ohio. This simple change could have a significant impact on the practice of architecture. Readers should not act on information contained in this newsletter without seeking legal counsel. This document is for general information purposes and should not be regarded as legal advice. Protect Ohio’s Ability to Fund Construction Bonds Vote No on Issue 1