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Local Government, General - As enacted, authorizes 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 , the official text

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                              PUBLIC CHAPTER NO. 863

                                                   SENATE BILL NO. 2334

                         By Gardenhire, Hatcher, Watson; Mr. Speaker McNally; Seal

                                           Substituted for: House Bill No. 2407

                                    By Scarbrough, Crawford, Powers, Parkinson

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 may 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:

                             (1) Has a full-time purchasing agent or other full-time procurement employee
                   satisfactory to the comptroller of the treasury, or the comptroller's designee;

                             (2)(A) Has general governmental revenues of at least one hundred fifty million
                             dollars ($150,000,000), if the local government is a county or metropolitan
                             government, or one hundred twenty-five million dollars ($125,000,000), if the
                             local government is a municipality or other local government in the most
                             recent prior fiscal year; or

                                       (B) Is approved by the comptroller, or the comptroller's designee, to
                             use a project delivery method pursuant to this section upon a determination by
                             the comptroller, or the comptroller's designee, that such use is in the best
                             interests of the local government;

                             (3) Selects the party to provide the project delivery method by means of a
                    competitive proposal process; and

                             (4) Has ordinances, rules, regulations, or policies that authorize such
                    competitive proposal process.

                    (b) As used in this section:

                             (1) "Competitive proposal process" means a process that, at a minimum,
                    includes the following:

                                       (A) 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 twenty percent (20%) of the
                             scoring criteria;
SB 2334

                                       (8) 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;

                                       (C) 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;

                                       (D) A mechanism by which a proposer may file a written protest of the
                             selection decision within ten (10) 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; and

                                       (E) 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;

                             (2) "Construction manager at-risk" means a project delivery method where the
                   construction manager, acting as the local government's general contractor, is
                   contracted to advise the designer and owner and to deliver a project within a
                   guaranteed maximum price;

                             (3) "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;

                             (4) "Design-build" means a construction project delivery method that combines
                   architectural and engineering design services with construction performance under
                   one (1) contract;

                             (5) "Local government" means a county, municipality, metropolitan
                    government, town, utility district, utility authority, local education agency, or other local
                    governmental entity;

                             (6) "Project delivery method" means any of the following construction
                    contracting methods:

                                       (A) Construction manager at-ri~k;
                                       (B) Design-bid-build; or

                                       (C) Design-build; and

                             (7) "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).

                    (c) This section 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
          section is supplemental authority for an eligible' local government to undertake the
          procurement of the construction of a qualified local project.

          SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.

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         SENATE BILL NO. 2334

PASSED:  April 13, 2026

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                               \ • • RANDY icNALLY
                                     SPEAKER OF THE SENATE

                         CAMERON SEXTON, SPEAKER
                         HOUSE OF REPRESENTATIVES

f:\Qr;J APPROVED this (A]~ day of  2026

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         BILL LEE, GOVERNOR
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