Design-Build Makes Key State and Local Legislative Gains Through First Half of 2025

By: Eden Binder, DBIA Advocacy and Communications Intern

Design-build in 2025 continues to be the fastest-growing project delivery method in the U.S. This momentum is being felt in state houses across the country this year, where DBIA remains active in advocating for design-build authority and protecting it where needed. Here’s a look at some key state and local legislative developments at the halfway point of the year:

DBIA on the Defense

While many states advanced design-build this year, others attempted to scale it back, prompting DBIA to oppose those efforts and defend existing authority in key markets.

Texas: SB 35

When Texas lawmakers considered limiting the Department of Transportation’s (TxDOT) design-build capacity, DBIA helped lead the charge against it. SB 35 would have reduced the number of design-build contracts TxDOT could pursue each biennium from six to two. DBIA testified against the bill in Austin in May, helping to remove the most damaging provisions before its passage.

“We met the challenge this year in opposing Senate Bill 35, but this is further proof we can’t take design-build authority for granted,” said Richard Thomas, DBIA’s Director of State/Local Legislative Affairs, who testified against the passage of SB 35 in its original form. “We have to be ever vigilant in its defense.”

Virginia: HB 2741

HB 2741 would have required all Virginia local governments to issue an invitation to bid for goods and services over $500,000, restricting local design-build authority. The bill failed in the House General Laws Committee on February 5, 2025, a welcome outcome for DBIA, which had actively opposed the measure.


Locally Focused Bills

States like Alabama and New York are empowering local governments to take greater control of their infrastructure projects by expanding access to design-build at the municipal and county levels.

Alabama: HB 90 and HB 91

Two new laws in Alabama expand local design-build options. HB 90 and HB 91 –– introduced by Rep. Adline Clark (D-097) –– grant county and municipal governments new authority to use design-build for more projects involving right-of-way acquisition, utility relocation, construction financing, ownership, management or maintenance of community facilities.

HB 90 and HB 91 were signed into law on May 13, 2025, and May 21, 2025, by Governor Kay Ivey. Both pieces of legislation have the potential to spur the development of more design-build projects at the county and municipal levels in Alabama.

New York: AB 6428

Some loosening of design-build restrictions at the county level may have started to make their way into New York State. AB 6428, introduced by Westchester County Assemblywoman Maryjane Shimsky (D-092), would establish the County of Westchester Public Works Investment Act. The act would allow the county and its agencies to use design-build without obtaining state-level approval for each project. AB 6428 passed through the state assembly and into the Senate on June 13, 2025. If passed, it could set a precedent for broader design-build use statewide.


Pilot and Sunset Programs

Across the country, states are launching pilot programs and extending or eliminating sunset clauses to ensure design-build remains a long-term tool for innovation and efficiency.

Nevada: AB 315

Nevada authorized a progressive design-build (PDB) pilot for the widening of I-80 East, between Vista Boulevard in Sparks and USA Parkway. AB 315 gives the Nevada Department of Transportation (NDOT) the authority to use PDB on this key corridor.

Governor Joe Lombardo signed AB 315 into law on June 3, 2025, which will hopefully continue to build on NDOT’s design-build precedent for future projects.

Illinois: SB 2456

Illinois is working to preserve design-build permissions within the state with SB 2456. The bill amends the Public Building Commission Act, extending the state Public Building Commission’s authority to use design-build from July 1, 2025, to July 1, 2027. Governor J.B. Pritzker signed SB 2456 into law on June 16, 2025, in what will hopefully be a preview of more extensions to design-build sunsets within the state.

Missouri: HB 199

As part of its 2025–26 session, Missouri has officially repealed the sunset clause restricting political subdivisions from utilizing design-build. HB 199 repeals the September 1, 2026, expiration date that limits state political subdivisions from using design-build delivery on construction projects. The bill was sent to the desk of Governor Mike Kehoe on May 30, 2025, and will help advance current and future design-build project initiatives in the state.

West Virginia: SB 2942

Sunset deadlines can limit innovation just as programs begin to show results. West Virginia’s SB 2942 helps avoid those limitations by extending the West Virginia Department of Environmental Protection’s (DEP) design-build pilot program through 2027 and raising the cap on design-build projects from $50 million to $75 million. DBIA supported the bill and welcomed the extension as a critical step toward sustaining design-build momentum within the state.

SB 2942 was signed into law by Governor Patrick Morrisey on April 25, 2025, and will hopefully help design-build projects and practitioners achieve superior results within the state for years to come.


Transportation

Transportation remains one of the most active sectors for design-build legislation, with states across the map adopting new policies to speed delivery, expand flexibility and embrace PDB.

Washington: HB 1970 and HB 5161

Washington, long a leader in design-build innovation, has taken another step toward expanding its use across the state. HB 1970, sponsored by DBIA member Rep. Janice Zahn (D-041), expands WSDOT’s design-build authority and was signed into law on May 20 by Governor Bob Feguson.

Also signed on May 20, HB 5161 directs a transportation committee study on delivery methods — including design-build, PDB, Construction Manager/General Contractor (CM/GC) and Public Private Partnerships (P3) — to evaluate impacts on cost, schedule and competition.

Florida: SB 462 and SB 1662

This year saw two bills come through the Florida state legislature aimed at increasing the state’s Department of Transportation’s (FDOT) design-build capabilities. SB 462 requires FDOT to use a two-phase process in awarding design-build contracts and mandates proposals from at least three firms. SB 1662 allows FDOT to issue phased performance and payment bonds to align with phased contracts. Both bills were signed into law on June 19, 2025, by Governor Ron DeSantis.

North Carolina: SB 391

SB 391 gives the North Carolina Department of Transportation (NCDOT) the authority to use progressive design-build contracts statewide, adding flexibility to the state’s transportation project delivery. HB 125 focuses on a specific project, authorizing NCDOT to use progressive design-build for road work improvements at Piedmont Triad International Airport. It also appropriates funding for this work across the next two fiscal years. SB 391 was signed into law by Governor Josh Stein on July 1, 2025, while HB 125 passed both houses on June 24, 2025.

Tennessee: HB 1320

HB 1320 gives the Tennessee Department of Transportation (TDOT) the authority to use both design-build and progressive design-build in emergency situations, accelerating response time for urgent infrastructure needs. Signed into law by Governor Bill Lee on March 28, 2025, the bill allows projects to bypass procedural delays when time matters most. 

Illinois: HB 3177

HB 3177 significantly expands the state’s Innovations for Transportation Infrastructure Act by increasing design-build authority for both the Illinois Department of Transportation (IDOT) and the Illinois State Toll Highway Authority (ISTHA). Under current law, design-build contracts are limited to $400 million in total during IDOT’s multi-year highway improvement program. HB 3177 raises that limit to $500 million annually, creating a more robust and sustained pipeline for design-build delivery in Illinois. The bill passed both chambers and was sent to Gov. Pritzker on June 24, 2025. 


Design-Build General Advancements

Beyond transportation and local government, states are advancing broad reforms to procurement laws and delivery practices that signal deeper commitment to Design-Build Done Right® across multiple sectors.

Minnesota: Special Session

During the Minnesota special session, DBIA was successful in getting design-build provisions included in several bills. Passage of HB 14 (Omnibus Transportation bill), HB 17 and HB 18 (capital spending bills) provided critical funding for design-projects across the state.  

Colorado: HB 1228

Sometimes, redefining the language around current parameters can go a long way. HB 1228 redefines “best value” in procurement to include resilience, long-term value and community impact, giving the Colorado Department of Transportation (CDOT) new flexibility to apply Design-Build Done Right® principles.  

HB 1228 was signed into law by Governor Jared Polis on May 24. 2025, as Colorado attempts to further its state efforts to engage in Design-Build Done Right®.

Nebraska: LB 317 and LB 660

Nebraska advanced design-build authority through two key bills. LB 317 consolidated several state agencies into a single entity while preserving the new agency’s ability to use design-build. Separately, LB 660 expanded design-build authority across other state agencies, including the Department of Correctional Services, Department of Transportation, Military Department and the State Building Division. The bill allows the use of design-build procurement based on both best value and Qualifications-Based Selection (QBS). 

Governor Jim Pillen signed LB 660 into law on May 20, 2025.

California: AB 533 and SB 539

Two bills are progressing through the California legislature that would broaden the state’s already robust design-build capabilities. AB 533 would authorize healthcare districts to use design-build for constructing hospitals and healthcare facilities, providing more streamlined and collaborative delivery options for critical medical infrastructure. Meanwhile, SB 539 would allow school districts to use any authorized delivery method, including PDB, during emergency situations, giving schools more flexibility and responsiveness when it matters most.

As of this report, AB 533 has passed the Assembly and moved to the Senate. SB 539 is in the Senate Appropriations Committee. The passage of both these bills would continue the trend of California leading the nation with its design-build regulations.


The work to advance design-build legislation across the country is never truly done. To stay informed on activity in your state, territory or region, visit DBIA’s Advocacy Center to get the fullest picture at the national and state level. Our Pending Legislation tracker also offers regular updates on state and local level bills, including DBIA’s position on each. 

With dozens of bills still pending in legislatures across the country, DBIA continues to advocate year-round to protect and expand design-build authority.