Local Government, General

Plain English Breakdown

The official source material did not provide specific details on the consequences of non-compliance with purchasing laws, nor did it specify how smaller local governments can choose their project delivery methods.

Local Government Project Delivery Methods Act

This bill allows local governments with at least 100,000 residents to choose their own construction project delivery methods as long as they follow purchasing laws.

What This Bill Does

• Allows local governments with a population of at least 100,000 people to pick the best way to build or add to buildings.
• Requires these local governments to have centralized purchasing and a full-time purchasing agent.
• Defines different types of project delivery methods like design-build and construction manager at-risk.

Who It Names or Affects

• Local governments with populations over 100,000 people
• Counties such as Maury, Bradley, Washington, Blount, Wilson, Sullivan, Sumner, Montgomery, Williamson, Rutherford, Hamilton, Knox, Davidson, and Shelby counties.
• Municipalities like Murfreesboro, Clarksville, Chattanooga, Knoxville, Memphis, and Nashville.

Terms To Know

Construction manager at-risk

A method where the construction manager acts as a general contractor to advise on design and build within a set budget.

Design-build

Combines architectural and engineering services with construction under one contract.

Limits and Unknowns

• The bill does not specify how smaller local governments can choose project delivery methods.
• It is unclear what happens if a local government does not follow purchasing laws while choosing their method.

Official Summary Text

This bill authorizes
a county, municipality, metropolitan government, town, utility district, utility authority, local education agency, or other local governmental entity
("local government") having
a population of 100,000 or more, according to the 2020 or a subsequent federal census, and having centralized purchasing with a full-time purchasing agent,
to
use any project delivery method that the local government determines most effectively meet the needs of the local government for the construction of loc
al projects or additions to existing buildings
as long as
all applicable purchasing laws are followed.

The following counties have a
population of 100,000 or more, according to the 2020 federal census
: Maury, Bradley, Washington, Blount, Wilson, Sullivan, Sumner, Montgomery, Williamson, Rutherford, Hamilton, Knox, Davidson, and Shelby counties.

The following municipalities have a
population of 100,000 or more, according to the 2020 federal census
: Murfreesboro, Clarksville, Chattanooga, Knoxville, Memphis, and Nashville.

Current Bill Text

SENATE BILL 307
By Briggs

HOUSE BILL 1054
By McKenzie

HB1054
001237
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 12,
Chapter 3, Part 12, relative to construction project
delivery methods.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 12, Chapter 3, Part 12, is amended by
adding the following language as a new section:
(a) Notwithstanding another law to the contrary, a local government having a
population of one hundred thousand (100,000) or more, according to the 2020 or a
subsequent federal census, and having centralized purchasing with a full-time
purchasing agent, may use any project delivery method that the local government
determines most effectively meet the needs of the local government for the construction
of local projects or additions to existing buildings; provided, that all applicable purchasing
laws are followed.
(b) As used in this section:
(1) "Construction manager at-risk" means a project delivery system
where the construction manager, acting as the local government entity's general
contractor, is contracted to advise the designer and builder, and to deliver a
project within a guaranteed maximum price;
(2) "Design-bid-build" means the traditional project delivery method,
which customarily involves three (3) sequential project phases, being design,
procurement, and construction, and two (2) distinct contracts for the design and
construction phases;

- 2 - 001237

(3) "Design-build" means a construction project delivery method that
combines architectural and engineering design services with construction
performance under one (1) contract;
(4) "Design-build-finance-operate" means an alternate project delivery
method whereby a private sector party is awarded a contract to design,
construct, finance, and operate a capital project;
(5) "Local government" means a county, municipality, metropolitan
government, town, utility district, utility authority, local education agency, or other
local governmental entity; and
(6) "Project delivery method" means any of the following construction
contracting methods:
(A) Construction manager at-risk;
(B) Design-bid-build;
(C) Design-build; or
(D) Design-build-finance-operate.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.