Ohio: A Construction Overview

Ohio’s Big Opportunities Necessitate Careful Attention to Detail

Major projects are breaking ground across Ohio, creating ripple effects well beyond any single jobsite. As owners and developers compete to deliver large-scale work on compressed timelines, contractors face intensifying pressure on labor availability – both within Ohio and from competing projects in neighboring states, all in the context of rapidly rising fuel prices. At the same time, the compliance landscape for commercial and industrial construction employment is tightening, adding another layer of operational risk to workforce planning. Moreover, in the background, public scrutiny of large projects is increasingly shaping project feasibility.

All Ohioans are seeing the massive projects in their backyards. The Cleveland Browns have broken ground on the new Huntington Bank Field which will be ready for play in 2029. The USD2.6 billion project is the largest economic development effort in Northeast Ohio and includes not just a stadium but a surrounding mixed-use entertainment district. Near Columbus, the USD2 billion Central Ohio Data Center Campus is under construction to meet growing demand for cloud computing and AI services. The project will include three data center buildings totalling about 1.5 million square feet, delivering roughly 192 MW of IT capacity on a 70-acre site, and posing significant energy pricing and infrastructure challenges. In Cincinnati, construction of the Brent Spence Bridge Corridor project improving connections with Covington, Kentucky has begun with a USD4.05 billion budget. Furthermore, development is not just in the largest cities; Meta is constructing a data center in Bowling Green with a budget of nearly USD1 billion, and rural Portsmouth in Southeast Ohio has been identified as a site for a potential 9.2 GW natural gas power complex which has initial cost estimates of USD33 billion.

These large projects create enormous opportunities but also pose particular challenges at every level. Staffing shortfalls, pricing impacts from tariffs, and supply chain interruptions pose risks that must be addressed in bidding and negotiations. In addition, construction parties must monitor rapidly developing Ohio law.

Managing Staffing and Supply Challenges Caused by Escalating Oil Prices

Managing risk begins with a careful review of contract provisions at every level. Even in instances where a party has limited bargaining power, recognizing that construction contract terms may be enforced as written rather than based on preconceived notions is critical.

Rising costs and unavailability of labor will likely be a particularly challenging aspect of projects in the next two years because of the closing of the Strait of Hormuz. Most commentators expect oil prices to not return to 2025 levels until at least 2027. This will affect the price and delivery costs of materials, operating costs of large equipment, and the willingness of laborers to drive to project sites.

At the outset, contractors and owners will need to forecast these impacts:

• whether the contractor has the ability to continue and absorb any additional costs;
• whether the contractor can contractually pass costs on to the owner, and how much does this change the economics of the project; and
• whether these issues have schedule impact, cost impact, or both.

Contractors must carefully negotiate change order provisions and whether such provisions are directly or indirectly triggered by commodity price changes such as oil. We anticipate significant arguments as change orders and the applicability of force majeure, regardless of which side of the project a contracting party is on. Negotiating clear terms on the impact of these price shocks and whether this entitles a contractor to a price and time adjustment (an excusable, compensable change), a non-compensated extension (an excusable, non-compensable change) or nothing at all must be addressed in the contract negotiation phase.

Legal Developments in Ohio

Contractors active in Ohio should remain vigilant to changes in the law. Contracts should be reviewed by risk managers, inside counsel or outside counsel and routinely modified for recent developments. Old unmodified form contracts often create significant unanticipated risks.

One recent example is the fact that Ohio contractors face a new statewide compliance baseline: as of 19 March 2026, they must use the federal E-Verify system on all non-residential construction projects. This marks Ohio’s first statewide E-Verify mandate (HB 246, the “E-Verify Workforce Integrity Act”) and shifts workforce verification from a discretionary practice to a mandatory, enforceable requirement. The law also imposes documentation and retention obligations, and non-compliance can trigger significant and rapidly escalating penalties – from USD250 per violation to as much as USD25,000 per violation in final non-compliance situations. Repeat or willful violations can carry additional consequences, including disqualification from state contracting for up to two years. All contracts down the chain should confirm appropriate compliance.

Ohio contractors must also remain vigilant in addressing developing DEI prohibitions. On 26 March 2026, President Trump issued Executive Order 14398 “Addressing DEI Discrimination by Federal Contractors.” Ohio likewise has repealed affirmative action provisions on state work as part of its appropriations bill. Even so, the magnitude and scope of such federal and state prohibitions are still being felt. Things such as training and mentoring programs can easily run afoul of federal law even if set up for well-intended purposes. Moreover, harmonizing such requirements with local requirements must be carefully tracked as compliance with such programs might disqualify a contractor from federal projects.

Finally, Ohio is at the forefront of voter-led initiatives to challenge large-scale development, particularly data centers with significant electrical and water needs. Indeed, residents are pursuing a constitutional amendment that would appear on the November ballot and could ban large-scale facilities. What this may mean is that these unprecedented growth opportunities in Ohio might cease under voter opposition, and if so, contractors will need to reassess the magnitude of growth in the next few years.

Ohio Takeaways

For contractors, the best time to manage risks is at bid and contract formation: price escalation and schedule relief should be addressed expressly, notice and documentation requirements should be built into project controls, and down-tier agreements should align on change, delay and force majeure mechanisms. At the same time, contractors should treat compliance as a project deliverable – confirming E-Verify processes and record retention, reassessing training and mentoring programs in light of evolving DEI restrictions – and closely monitor voter initiatives that might disrupt growth. In a market defined by mega-projects and tight resources, Ohio contractors that are disciplined in contract drafting/negotiation as well with real-time compliance and management will be best positioned to protect themselves while capitalizing on big opportunity.