As 2026 legislative sessions come to a close, several states have passed or considered measures to authorize or expand the use of design-build, including progressive design-build (PDB), by state and local public agencies.
New and Expanded Design-Build Authority
Utah Senate Bill 164
Utah is among several states that have recently considered expanding design-build authority in the education sector. Senate Bill 164 authorizes and encourages the use of design-build for school construction projects valued at more than $3 million.
Projects below this threshold must continue to use design-bid-build unless the state’s Division of Facilities Construction and Management approves an alternative delivery method.
Gov. Spencer Cox signed Senate Bill 164 into law on March 19, 2026.
Tennessee Senate Bill 2334
Tennessee Senate Bill 2334 expands the ability of certain local governments to use alternative project delivery methods, including design-build, for qualifying construction projects.
The law applies to counties and metropolitan governments with at least $150 million in general government revenue during the most recent fiscal year. Municipalities and other local governments must have at least $125 million in general government revenue to qualify.
Before using design-build, the local government must determine that the delivery method would most effectively meet its needs. The project must involve the construction, renovation or expansion of a building and have an estimated cost exceeding $5 million.
Gov. Bill Lee signed Senate Bill 2334 into law on April 27, 2026.
California Assembly Bill 1860
California Assembly Bill 1860 would extend design-build authority currently available to school districts to county offices of education. With the approval of their county boards of education, county offices could procure design-build and alternative design-build services under requirements similar to those governing school districts.
Under the bill, county offices of education could award alternative design-build contracts for public works projects valued at more than $5 million through Jan. 1, 2029. Contracts would be awarded on either a lowest-bid or the best-value basis and would require approval from the governing board.
Assembly Bill 1860 passed the Assembly on May 4, 2026. In the Senate, it advanced from the Education to the Committee on Appropriations and proceeded to a third reading.
South Carolina Senate Bill 831
South Carolina Senate Bill 831 expands the project delivery tools available to the South Carolina Department of Transportation (SCDOT). The law authorizes SCDOT to enter into public-private partnerships for design-build projects and use PDB, referred to in the legislation as phased design-build.
The measure also authorizes SCDOT to encourage the use of phased design-build throughout the state.
“This is legislation that aims to modernize transportation delivery in South Carolina with several new tools to help SCDOT deliver projects faster and more efficiently, and SCDOT has already started moving to make these new tools a reality,” SCDOT said in a statement to DBIA. “SCDOT appreciates the continued support of the Governor and the General Assembly to advance transportation in South Carolina and to help us build and maintain a road and bridge network that will support our state for generations to come.”
Gov. Henry McMaster signed Senate Bill 831 into law May 18, 2026. It was enacted as Act No. 177.
Extended Design-Build Authority
Georgia House Bill 1277
Georgia House Bill 1277 removes the limit on the number of design-build projects the Georgia Department of Transportation (GDOT) may award.
The law also requires GDOT to publish an annual report summarizing all design-build projects awarded during the fiscal year. The report must be submitted to appropriate state leadership and legislative committees and made publicly available.
For projects not awarded to the lowest bidder, GDOT must explain the basis for the award. The report must also describe the considerations used for best-value selections and summarize projects undertaken under the applicable section of state law.
Gov. Brian Kemp signed House Bill 1277 into law May 11, 2026. It took effect on July 1, 2026.
Illinois Senate Bill 3645
Illinois Senate bill 3645 extends existing design-build and PDB authority by amending the state’s Design-Build Procurement Act and Progressive Design-Build Pilot Program Act.
These amendments extend the sunset date for design-build procurement from Jan. 1, 2027, to Jan. 1, 2030. It also extends the state’s PDB authority, allowing the existing pilot program and PDB procurement from Jan. 1, 2027 to Jan. 1, 2028.
“The Design-Build Procurement Act has a significant impact on the state’s building sector, so extending or eliminating the sunset was a priority,” said Richard Thomas, DBIA’s Director of Advocacy and Government Affairs. “The legislation came down to the final days of the session, but DBIA worked with the Illinois General Assembly to secure extensions for both design-build and progressive design-build authority.”
Senate Bill 3645 passed both the Illinois House and Senate and was ordered enrolled on June 1, 2026.
Funding for Design-Build-Eligible Projects
Several states also approved or considered funding measures covering public projects authorized to use design-build.
Kentucky House Bill 501
Kentucky House Bill 501 establishes funding for the Kentucky Transportation Cabinet during the state’s 2026-2028 fiscal biennium.
The measure allocates $416 million for fiscal year 2027 and $503 million for fiscal year 2028 to support projects included in the 2026–2028 Biennial Highway Construction Plan. Because projects included in the plan may use design-build, the appropriations provide funding for projects that could be delivered using the method. Projects under the plan have authorization to utilize design-build, meaning the bill ensures continued funding for design-build projects within the immediate future.
House Bill 501 was signed into law by Gov. Andy Beshear on April 15, 2026.
California Assembly Bill 109
California Assembly Bill 109 includes funding for public projects as part of the state’s fiscal year 2026–2027. More than $500 million is allocated to projects expected to use design-build, including more than $320 million for the new San Luis Obispo Courthouse project.
Assembly Bill 109 has passed through both the Assembly and Senate and was sent to the Gov. Gavin Newsom on June 15, 2026.
State design-build legislation continues to evolve as new measures are introduced, amended and enacted. Visit DBIA’s State Advocacy page for the latest updates, download DBIA’s state legislative resources, including the updated State Statute Report and guidance for developing state design-build legislation. And listen to the latest episode of the Design-Build Delivers Podcast, featuring DBIA Director of Advocacy and Government Affairs Richard Thomas, for a closer look at the 2026 state legislative landscape.
