Eligible/qualifying local governments across Tennessee now have additional flexibility in how they deliver large construction projects following the passage of Senate Bill 2334 (Public Chapter 863). The legislation authorizes qualifying local governments to select the project delivery method that best meets their needs for certain construction projects, provided they follow a competitive procurement process and comply with local policies and procedures.

The law applies to qualified local projects costing more than $5 million and allows eligible local governments to choose among several delivery methods, including traditional Design-Bid-Build, Design-Build, and Construction Manager at Risk (CMAR).

Why This Matters

For decades, many public construction projects have relied primarily on Design-Bid-Build, a process where design, procurement, and construction occur in separate phases. While that approach is still appropriate for simple/cookie cutter projects that have been built before (like big box retail or fast-food restaurants), over the years, it has been proven that it is not the best solution for complicated and unique projects.

We are confident that legislators recognized the shortcomings of many traditional Design-Bid-Build projects over the years. These projects have often produced disappointing results for several reasons, including significant cost overruns caused by major change orders during construction, delays beyond scheduled completion dates, and quality concerns that ultimately increase long-term costs. As a result, legislators wisely acknowledged that different projects present different challenges. They also recognized that local governments can benefit from greater flexibility by having access to additional project delivery methods that have been successfully tested and implemented by other states and public agencies.

The legislation does not eliminate competition or procurement requirements. Instead, it requires a competitive proposal process that includes qualifications and experience and allows experienced and qualified companies to be selected to perform professional preconstruction and estimating services through the design process to make sure project can be delivered on budget.

How This Aligns with Denark’s Philosophy

At Denark, from our founding, we have been promoting collaborative delivery methods to all who would listen because we strongly believed that successful projects are built through collaboration, transparency, and appropriate accountability. Our experience can show that the strongest outcomes often occur when owners, designers, contractors, and stakeholders work together early and consistently throughout the design and construction.

When design professionals, construction professionals, and owners are engaged together during planning and design, teams will be better positioned to identify risks, develop realistic and dependable budgets, evaluate constructability, at various milestone design phases to avoid very costly change orders during construction, there is a much higher probability that the project will be delivered within a realistic budget and the project schedule can be maintained as planned.

Importantly, this legislation does not endorse one delivery method over another. Rather, it provides local governments with additional tools to select the approach that best serves their project goals, budget, schedule, and community needs. That flexibility reflects a principle we strongly support: every project is unique, and the owner team should be empowered to choose the delivery strategy that creates the greatest value for their stakeholders.

Looking Ahead

As Tennessee communities continue investing in higher education, K-12 schools, infrastructure, public facilities, and utility improvements, project complexity continues to grow. The ability to evaluate multiple delivery methods allows local leaders to align procurement strategies with the specific objectives of each project.

Denark believes collaboration remains the foundation of successful construction, and strong partnerships, open communication and shared problem-solving remain the keys to delivering exceptional results for our communities.

Resources: [wapp.capitol.tn.gov], [capitol.tn.gov]