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SB 2334

Local Government, General - As introduced, authorizes a local government having revenues of at least $20 million in the prior fiscal year to 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. - Amends TCA Title 12, Chapter 3, Part 12.

114th Regular Session (2025-2026) Introduced by Todd Gardenhire

Allows Tennessee local governments with $20M+ annual revenues to choose their own construction project delivery methods instead of using mandated state approaches.

Pub. Ch. 863
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Bill Summary · SB 2334

Legislative bill overview

SB 2334 authorizes larger Tennessee local governments (those with revenues of at least $20 million annually) to select their preferred method for delivering construction projects for qualified local infrastructure, rather than being restricted to a single state-mandated approach. This amendment to Tennessee Code Annotated Title 12, Chapter 3, Part 12 expands local autonomy in project procurement.

Why is this important

Local governments currently operate under constrained procurement rules that may not suit all project types or circumstances. This bill could allow municipalities to choose alternative delivery methods (such as design-build, construction manager at-risk, or traditional design-bid-build) based on specific project needs, potentially improving efficiency, cost control, and timeline management. However, it also shifts responsibility for project outcomes and procurement risks to local governments rather than centralizing oversight.

Potential points of contention

  • Accountability and oversight concerns: Removing state-mandated uniformity could reduce standardized oversight, potentially increasing risk of cost overruns, project mismanagement, or corruption if local governments lack sufficient internal controls
  • Competitive bidding implications: Alternative delivery methods may reduce transparency in how contracts are awarded compared to traditional competitive bidding, potentially disadvantaging smaller contractors
  • Revenue threshold fairness: The $20 million revenue threshold may exclude smaller municipalities, creating a two-tiered system where only larger, better-resourced governments gain flexibility

Compiled from official sources — confirm details with the bill’s official record.

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