Intel has announced its plans to break ground on $20 billion semiconductor factories outside Columbus, Ohio.
General contractor Gilbane Building has chosen their first round of construction partners and plans to start operations later this year in 2022.
In this guide, contractors and subcontractors interested in working on this project can find background info about the project, information about Ohio’s laws regarding bonds and payments, as well as information on the first round of contractors selected to work on the factory.
Intel’s Columbus Factory: Project background & quick facts
In Ohio, there are 34% fewer manufacturing jobs now than in 1991. Since so many towns are struggling to keep their economies alive, it has prompted locals like Mary Springowski to send emails to companies like Intel to consider investing in their communities.
A single email sent by Murkowski in 2021 resulted in a Zoom call just two days later, which kickstarted the process of Intel seriously considering a new factory in Ohio.
Intel CEO Pat Gelsinger was recently congratulated for his decision in President Biden’s State of The Union address in March 2022.
The Columbus Dispatch reported on Intel’s choice of Gilbane to manage the factories’ development.
“Gilbane Building will manage early excavation work for the two factories that the semiconductor company is building in western Licking County,” the Dispatch reported.
As of time of reporting, the project has a $20 billion construction budget, which will make this the biggest investment in the state’s history.
More quick facts:
- The factory is posed to create at least 7,000 construction jobs, and once completed, over 3,000 permanent jobs in Ohio.
- The project will be spread across 3,190 acres of land outside of Columbus.
- The pandemic skyrocketed the demand for easy access to computer chips, but only 12% of the world’s computer chips are made in the US. Although this is the start of making new sources for chips here in the states, the factory is not projected to start producing materials until late 2025.
Payment rules for Ohio subcontractors
Anyone interested in the Intel project should familiarize themselves with bond claim laws, prompt payment laws, and Project Labor Agreements (PLAs).
Due to the uncertainty of whether this is a mostly private or hybrid public-private project (P3), contractors can benefit from reviewing the terms dictating payment bond claims in Ohio. Every developer and general contractor is required to secure payment and performance bonds on such projects.
To learn more about payment on P3 projects, check out Public-Private Partnerships: An Industry Guide to P3 Projects
Right now, there is no current mention of a project labor agreement (PLA) for the new Intel Factory on their site or any news outlets, but it’s wise to invest time in understanding such an agreement as government funds will likely be used to finance the project.
A PLA is used to protect workers on a federally funded project and set wage rates for various roles in the project.
Ohio Prompt Payment laws
Despite the uncertainty of whether this is strictly a private project or not, the state of Ohio provides many statutes to protect contractors in case of non-payment. Among these laws are guidelines about payment deadlines, as well as penalties in the form of accrued interest if a subcontractor doesn’t receive payment.
Subcontractors can also learn the ins and outs of preliminary notices in Ohio. Contractors can send preliminary notices to property owners, part-owners, or lessees, according to Ohio law, and also to any parties that they didn’t contract with directly.
Need to send a notice in Ohio? Check the Ohio Preliminary Notice Guide & FAQs.
Who’s who: Construction partners of Intel’s semiconductor project
The construction contracts are intended to be awarded to Ohio businesses in the amount of 50%, while 20% will go to diverse enterprises that employ minorities, women, and veterans.
The first round of construction partners includes the following:
McDaniel’s primarily specializes in projects involving earth-moving equipment for publicly funded infrastructure projects. They’re based in Columbus, Ohio, and have been incorporated since 1985.
Northstar is a full-service general contractor that performs work in sewer, site work, engineered concrete structures, general building construction, and interior renovations. They’re based in Cleveland, Ohio, and have previously worked with the Army Corp of Engineers and NASA amongst many others.
GTSA is a woman-owned firm that has helped schedule and manage numerous construction projects in Ohio for over 35 years. They also provide forensic schedule analysis as well as CPM/P6 training.