Alternative delivery of projects contracted by the Department of Transportation, the official text

2025 - 2026 LEGISLATURE
LRB-4776/1
ZDW:cjs&cdc

2025 SENATE BILL 461
October 2, 2025 - Introduced by Senators Marklein, Feyen, Keyeski, Spreitzer, Testin and Ratcliff, cosponsored by Representatives Dallman, Dittrich, Goodwin, Kaufert, Knodl, Maxey, Moses, Murphy and O'Connor. Referred to Committee on Transportation and Local Government.

An Act to repeal 84.01 (33) (bm), 84.062 (1) (b), 84.062 (1) (c), 84.062 (1) (d), 84.062 (1) (dm), 84.062 (1) (h), (i), (j) and (k), 84.062 (1) (n), (o) and (q), 84.062 (2) (b), 84.062 (2) (d) and (e), 84.062 (3) (d), 84.062 (5) to (9) and 84.062 (13) and (14); to renumber and amend 84.062 (1) (a); to amend 84.013 (2m), 84.0145 (4), 84.062 (1) (L), 84.062 (1) (m), 84.062 (2) (a), 84.062 (3) (a) (intro.), 84.062 (3) (a) 2., 84.062 (3) (a) 3., 84.062 (3) (a) 4., 84.062 (3) (b), 84.062 (10) (a), 84.062 (10) (b), 84.062 (11) (a) (intro.), 84.062 (11) (a) 1., 84.062 (11) (a) 2., 84.062 (11) (a) 3., 84.062 (11) (b) and 84.062 (11) (c); to repeal and recreate 84.062 (2) (title) and 84.062 (4); to create 84.062 (1) (ae), 84.062 (1) (bm), 84.062 (1) (er), 84.062 (1) (Lm), 84.062 (1) (mn), 84.062 (2) (c), 84.062 (3) (cm), 84.062 (3) (e), 84.062 (11) (d), 84.062 (11) (e), 84.062 (11) (f) and 84.062 (15) of the statutes; relating to: alternative delivery of projects contracted by the Department of Transportation.

Analysis by the Legislative Reference Bureau
This bill makes numerous changes to alternative delivery of highway projects contracted by the Department of Transportation.
Under current law, the design and construction of highway projects are generally two distinct phases. Under this method, commonly known as “design-bid-build,” DOT has broad authority to accomplish the design of a project. The construction of a project must be executed by contract based on bids, with DOT awarding the contract to the lowest responsible bidder.
Under a current pilot program, DOT is authorized to award not more than six contracts for design-build projects, which are projects under which the design, engineering, construction, and related services are provided by a single entity. Under the program, DOT may not expend more than $250,000,000 for the six contracts. DOT is also required to maintain an inventory of at least five projects suitable for selection as design-build projects.
The bill eliminates the pilot program and the requirement that DOT maintain an inventory of design-build suitable projects. The bill provides that DOT may encumber not more than $300,000,000 in each fiscal biennium for state trunk highway improvement projects using alternative project delivery, which is defined as any construction project delivery method, other than design-bid-build, that is eligible for federal funding.
Current law details how, under the pilot program, DOT must solicit requests for qualifications, requests for proposals, and cost proposals and how DOT must award contracts. The bill eliminates these requirements and provides that DOT must use a procedure that conforms to federal regulations for evaluating and selecting contracts under which the design and construction are provided by a single entity.
The bill provides that, for alternative project delivery, a technical review committee must review all responses to a request for qualifications and determine which respondents are qualified responsible bidders. The technical review committee must also review and evaluate each proposal provided in response to a request for proposals. Finally, the technical review committee must make a recommendation for awarding a contract, but only if DOT received two or more proposals.
Under the pilot program that the bill eliminates, DOT must award a stipulated fee of not less than three-tenths of 1 percent of DOT’s estimated cost of design and construction to 1) each qualified responsible bidder that provides a responsive but unsuccessful proposal, 2) each qualified responsible bidder that provides a responsive proposal if DOT does not award a contract, and 3) each qualified responsible bidder if DOT cancels the the solicitation before the technical review committee reviews technical proposals.
Under the bill, DOT must award the stipulated fee for design-build projects and may award the stipulated fee for other alternative delivery projects, if the fee is included in the notice of solicitation for the project.
Under the pilot program that the bill eliminates, any person aggrieved and directly affected by a DOT decision to issue a request for qualifications or a request for proposals is entitled to judicial review of the decision. The bill does not include a similar provision for alternative project delivery.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

Section 1. 84.01 (33) (bm) of the statutes is repealed.
Section 2. 84.013 (2m) of the statutes is amended to read:
84.013 (2m) The department shall annually adjust the amounts specified in sub. (1) (a) 1m. and 2m. to reflect the annual change in the Wisconsin Department of Transportation Price Construction Cost Index, Yearly Moving Average, as maintained by the department or, if at any time the department no longer maintains this index, another suitable index as determined by the department. Beginning in 2012, prior to October 1 of each year, the department shall compute the annual adjustment required under this subsection and shall publish the new adjusted amount applicable under sub. (1) (a) 1m. and 2m., which amount shall become effective on October 1 of that year. The department may not adjust the amounts specified in sub. (1) (a) 1m. and 2m. to an amount less than that specified in sub. (1) (a) 1m. and 2m.
Section 3. 84.0145 (4) of the statutes is amended to read:
84.0145 (4) The department shall annually adjust the amount specified in sub. (1) (c) to reflect the annual change in the Wisconsin Department of Transportation Price Construction Cost Index, Yearly Moving Average, as maintained by the department or, if at any time the department no longer maintains this index, another suitable index as determined by the department.
Beginning in 2012, prior to October 1 of each year, the department shall compute the annual adjustment required under this subsection and shall publish the new adjusted amount applicable under sub. (1) (c), which amount shall become effective on October 1 of that year. The department may not adjust the amount specified in sub. (1) (c) to an amount less than that specified in sub. (1) (c).
Section 4. 84.062 (1) (a) of the statutes is renumbered 84.062 (1) (am) and amended to read:
84.062 (1) (am) “Alternative technical concepts” concept” means a proposed alternative to the technical requirements provided by the office a suggested change to the project requirements submitted by a qualified responsible bidder or proposer that modifies the department's supplied basic configurations or design or construction criteria in the request for proposals for a project.
Section 5. 84.062 (1) (ae) of the statutes is created to read:
84.062 (1) (ae) “Alternative project delivery” means any construction project delivery method, other than under s. 84.06 (2), that is eligible for federal funding under title 23 of the code of federal regulations.
Section 6. 84.062 (1) (b) of the statutes is repealed.
Section 7. 84.062 (1) (bm) of the statutes is created to read:
84.062 (1) (bm) “Construction manager-general contractor delivery” is the delivery of a project through a two-phase contract under which a contractor provides services during the preconstruction phase and, if there is an agreed upon price and scope, the construction phase of a project.
Section 8. 84.062 (1) (c) of the statutes is repealed.
Section 9. 84.062 (1) (d) of the statutes is repealed.

Section 10. 84.062 (1) (dm) of the statutes is repealed.
Section 11. 84.062 (1) (er) of the statutes is created to read:
84.062 (1) (er) “Progressive design-build method” means a two-phase contract, including a qualification-based selection process after which the department and a contractor work together to develop the final scope, schedule, and budget for a project.
Section 12. 84.062 (1) (h), (i), (j) and (k) of the statutes are repealed.
Section 13. 84.062 (1) (L) of the statutes is amended to read:
84.062 (1) (L) “Project” means a project involving a highway improvement, as defined in s. 84.063 (1) (d) state trunk highway improvement project.
Section 14. 84.062 (1) (Lm) of the statutes is created to read:
84.062 (1) (Lm) "Proposer" means an entity, joint venture, or consortium that submits a proposal in a single-phase selection process under sub. (4) (c).
Section 15. 84.062 (1) (m) of the statutes is amended to read:
84.062 (1) (m) “Qualified responsible bidder” means a design-builder that is responding to a request for qualifications and that is certified respondent determined by the technical review committee to be a qualified responsible bidder under sub. (3) (cm) 1.
Section 16. 84.062 (1) (mn) of the statutes is created to read:
84.062 (1) (mn) “Respondent” means an entity, joint venture, or consortium that submits a response to a request for qualifications.
Section 17. 84.062 (1) (n), (o) and (q) of the statutes are repealed.
Section 18. 84.062 (2) (title) of the statutes is repealed and recreated to read:
84.062 (2) (title) Projects.

Section 19. 84.062 (2) (a) of the statutes is amended to read:
84.062 (2) (a) The Notwithstanding s. 84.06 (2), the department shall administer a pilot program under which not more than 6 contracts are awarded may award contracts under this section for design-build projects that will use alternative project delivery. The department may not award contracts under this section for projects using construction manager-general contractor delivery or progressive design-build methods.
Section 20. 84.062 (2) (b) of the statutes is repealed.
Section 21. 84.062 (2) (c) of the statutes is created to read:
84.062 (2) (c) 1. Subject to subds. 2. to 4., the department may encumber in each fiscal biennium an amount not to exceed $300,000,000 for projects using alternative project delivery.
2. In a joint project between states, the amounts that the department pays or commits to the other state, and the amounts paid or committed to this state by the other state, may not be counted under subd. 1.
3. The amount that is encumbered in a fiscal biennium under subd. 1. does not limit the amount that may be encumbered under subd. 1. in subsequent fiscal biennia. The amount that is not encumbered in a fiscal biennium under subd. 1. may not be carried forward to increase the total amount that may be encumbered under subd. 1. in subsequent fiscal biennia.
4. The department shall annually adjust the amount specified in subd. 1. to reflect the annual change in the Wisconsin Department of Transportation Construction Cost Index, Yearly Moving Average, as maintained by the department or, if at any time the department no longer maintains this index, another suitable
index as determined by the department. Beginning in 2026, prior to October 1 of each year, the department shall compute the annual adjustment required under this subdivision and shall publish the new adjusted amount applicable under subd. 1., which amount shall become effective on October 1 of that year. The department may not adjust the amount specified in subd. 1. to a lower amount.