Official Summary Text
This bill authorizes a county, municipality, metropolitan government, town, utility district, utility authority, local education agency, or other local governmental entity (together, a "local government") having revenues of at least $20 million in the mo
st recent prior fiscal year to use any project delivery method that the local government determines most effectively meets the needs of the local government for the construction of any construction project, including the renovation of or expansion of an e
xi
sting building, with an estimated cost to the local government in excess of $5 million, as long as the following criteria is met:
The party retained to provide the project delivery method is selected by means of a competitive proposal process.
The local government's applicable ordinances, rules, regulations, or policies authorize such competitive proposal process.
As used in this bill, a "project delivery method" means any of the following construction contracting methods:
Construction manager at-risk
, which is a project delivery method 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.
Design-bid-build
, which is the traditional project delivery method that customarily involves three sequential project phases, being design, procurement, and construction, and two distinct contracts for the design and construction phases.
Design-build
, which is a construction project delivery method that combines architectural and engineering design services with construction performance under one contract.
ON APRIL 2, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2334, AS AMENDED.
AMENDMENT #1 rewrites the bill to, instead, authorize a local government to use any project delivery method that the local government determines most effectively meets the needs of the local government for the construction of qualified local projects, if
the local government meets all of the following requirements:
The local government has a full-time purchasing agent or other full-time procurement employee satisfactory to the comptroller of the treasury.
The local government (i) has general governmental revenues of at least $150 million, if the local government is county or metropolitan government, or $125 million if the local government is a municipality or other local government; or (ii) is approved by the comptroller to use a project delivery method pursuant to this amendment upon a determination the such use is in the best interests of the local government.
The local government selects the party to provide the project delivery method by means of a competitive proposal process.
The local government has ordinances, rules, regulations, or policies that authorize such competitive proposal process.
As used in this amendment, a "competitive proposal process" means a process that, at a minimum, includes all of the following:
Prior to issuing a request for proposals, the local government publicly discloses the evaluation criteria with a written determination of "best value" and the relative weight assigned to each criterion used to evaluate proposals. However, the criteria must be based on the qualifications and experience are weighted so that such criteria constitute at least a majority of the scoring criteria, as compared to pricing considerations.
The local government discloses the members of the selection committee prior to proposal evaluation and maintains written conflict-of-interest disclosures for each committee member.
Following selection, the local government publishes the evaluation scores and written justification for the individual scores cast by each member of the selection committee with respect to the selected proposal.
A mechanism by which a proposer may file a written protest of the selection decision within seven days of the award. The local government must issue a written response to a protest prior to executing a contract.
The designation of all procurement documents, including the request for proposals, evaluation criteria, scoring sheets, written justification for the individual scores cast by each member of the selection committee, and the final contract as public records available upon request.
ON APRIL 8, 2026 THE HOUSE SUBSTITUTED SENATE BILL 2334 FOR HOUSE BILL 2407, ADOPTED AMENDMENT #1, AND PASSED SENATE BILL 2334, AS AMENDED.
AMENDMENT #1 modifies the definition of a "competitive proposal process" to mean a process that, at a minimum, includes the following:
Prior to issuing a request for proposals, the local government publicly discloses the evaluation criteria and the relative weight assigned to each criterion used to evaluate proposals, with the criteria that are based upon qualifications and experience being weighted so that such criteria constitute at least a majority of the scoring criteria, as compared to pricing considerations, and with the criteria that are based upon pricing considerations being weighted so that such criteria constitute at least 20% of the scoring criteria.
The local government discloses the number of, and the occupations of, the members of the selection committee prior to proposal evaluation and maintains written conflict-of-interest disclosures for each committee member.
Promptly following selection of the highest scoring respondent, the local government publishes on its website or procurement platform notice of such selection and the evaluation scores and any notes by each member of the selection committee with respect to the selected proposal.
A mechanism by which a proposer may file a written protest of the selection decision within ten days of notice of such selection, with the local government being required to issue a written response to a protest prior to executing a contract.
The designation of all procurement documents, including the request for proposals, evaluation criteria, scoring sheets, any written notes of the member of the selection committee, and final contract as public records available upon request.
This amendment also modifies the definition of a "construction manager at-risk," as used in the bill, to mean a project delivery method where the construction manager, acting as the local government's general contractor, is contracted to advise the desig
ner and owner and to deliver a project within a guaranteed maximum price.
Further, this amendment clarifies that the bill does not limit or otherwise affect in any manner any right or authority of any local government to undertake a procurement under any other applicable law. This is supplemental authority for an eligible loc
al government to undertake the procurement of the construction of a qualified local project.
ON APRIL 13, 2026, THE SENATE
CONCURRED IN HOUSE AMENDMENT #
1
.
Current Bill Text
Read the full stored bill text
SENATE BILL 2334
By Gardenhire
HOUSE BILL 2407
By Scarbrough
HB2407
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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
revenues of at least twenty million dollars ($20,000,000) in the most recent prior fiscal
year may use any project delivery method that the local government determines most
effectively meet the needs of the local government for the construction of qualified local
projects; provided, that:
(1) The party retained to provide the project delivery method is selected
by means of a competitive proposal process; and
(2) The local government's applicable ordinances, rules, regulations, or
policies authorize such competitive proposal process.
(b) As used in this section:
(1) "Construction manager at-risk" means a project delivery method
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,
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procurement, and construction, and two (2) distinct contracts for the design and
construction phases;
(3) "Design-build" means a construction project delivery method that
combines architectural and engineering design services with construction
performance under one (1) contract;
(4) "Local government" means a county, municipality, metropolitan
government, town, utility district, utility authority, local education agency, or other
local governmental entity;
(5) "Project delivery method" means any of the following construction
contracting methods:
(A) Construction manager at-risk;
(B) Design-bid-build; or
(C) Design-build; and
(6) "Qualified local project" means any construction project, including the
renovation of or expansion of an existing building, with an estimated cost to the
local government in excess of five million dollars ($5,000,000).
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.