ASHLAND — Ashland city officials are now allowed to pursue projects that cost less than $75,000 without first initiating a competitive bid.
Ashland City Council unanimously approved an ordinance Tuesday that increases the competitive bidding threshold from $50,000 to $75,000 through 2024. That threshold will then increase annually by 3%.
The competitive bidding thresholds for cities, villages, public libraries, counties and townships — found in section 9.17 of Ohio Revised Code — gained Legislature approval in July. But it was not effective until Oct. 3.
The law essentially means Ashland does not have to advertise for bids on projects that cost less than $75,000. That threshold, $50,000, was last updated in 2013.
Ashland Mayor Matt Miller said the update makes sense with inflation and the rising cost of construction materials.
Inflation rates, hovering at 4.3% now, have decreased by two percentage points since last year around this time, according to the U.S. Congress Joint Economic Committee’s report for September.
Construction materials, according to Gordian — a construction cost data tracking firm — have spiked 19% since 2020.