This week, on an 86-10 vote, the Ohio House trampled on the right of private businesses to freely negotiate payment terms in construction contracts by approving House Bill 68, which the OMA opposed. (The OMA notified the speaker about the bill’s problems.)
HB 68 requires the state to set payment terms in construction contracts and allows for a potential windfall against manufacturers. It eliminates the right to negotiate payment terms and instead requires all construction contacts to be paid within 30 days. The bill also establishes new penalties by imposing an 18% annual interest rate to payments not made within 30 days.
The OMA and other business allies will continue to fight this bill in the Senate to protect one of the most important pillars in a free market – the freedom of contract. 5/20/2021