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HB 2407

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 Rick Scarbrough

Bill allows Tennessee local governments with $20M+ annual revenue to select any construction project delivery method rather than following state-prescribed procedures.

Comp. became Pub. Ch. 863
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Bill Summary · HB 2407

Legislative bill overview

HB 2407 allows larger Tennessee local governments (those with revenues of at least $20 million annually) to choose any project delivery method they deem appropriate for constructing qualified local projects, rather than being restricted to specific methods. This amends the existing state law governing local government construction procedures under Tennessee Code Annotated Title 12, Chapter 3, Part 12.

Why is this important

Project delivery methods—such as design-bid-build, design-build, or construction manager-at-risk—significantly affect project timelines, costs, and risk allocation. Granting larger municipalities flexibility could allow them to select approaches better suited to specific projects, potentially improving efficiency and outcomes. However, this also removes uniform state oversight that currently ensures accountability and standardized procurement practices across local governments.

Potential points of contention

  • Loss of uniformity and oversight: Eliminating state-mandated project delivery methods could create inconsistency in how public funds are spent and reduce transparency across municipalities
  • Qualification threshold: The $20 million revenue threshold may exclude smaller municipalities while potentially favoring larger, more sophisticated local governments with greater staff expertise
  • Accountability concerns: Broader discretion without state guidelines could increase risks of cost overruns, contractor favoritism, or inadequate competition if local governments lack procurement expertise or oversight mechanisms

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

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