TO AMEND THE LAW CONCERNING THE BIDDING PROCEDURE FOR THE CONSTRUCTION OF BUILDINGS AND FACILITIES.

2025 Regular Session Introduced by Ben Gilmore and 1 co-sponsor

Act 939 streamlines bidding for Arkansas construction projects under $150,000, allowing state agencies and smaller contractors to manage projects more efficiently.

Notification that HB1524 is now Act 939

Purpose and Intent

House Bill 1524, now known as Act 939, aims to amend the existing laws governing the bidding procedures for the construction of buildings and facilities in Arkansas. The primary intent of this legislation is to streamline the bidding process, particularly for smaller projects, while ensuring that state agencies can effectively manage and execute construction projects.

Key Provisions

The bill introduces several significant changes to the Arkansas Code § 19-4-1405, which outlines the bidding procedures:

Bidding Advertisement Requirements:

For projects exceeding $50,000, state agencies must advertise for bids once a week for at least two consecutive weeks.
For projects valued at $50,000 or less, the advertisement requirement is reduced to one week.

Exemptions for Smaller Projects:

An additional subsection (g) has been added, which exempts certain projects from the standard bidding procedures:
- Projects that are $150,000 or less.
- Projects that are owned, operated, or managed by the Department of Parks, Heritage, and Tourism.
- Projects funded by tax revenue appropriated for special maintenance to the State Parks Division under Arkansas Constitution, Amendment 75, § 2.

Affected Parties

The changes brought about by Act 939 will primarily affect:
- State Agencies: They will have more flexibility in managing smaller construction projects without the need for extensive bidding procedures.
- Contractors and Construction Firms: Smaller contractors may benefit from the streamlined process, allowing them to compete more effectively for smaller projects.
- Department of Parks, Heritage, and Tourism: This department will have more autonomy in managing maintenance and repair projects without the usual bidding constraints.

Procedural Timeline

Introduced: February 18, 2025

Amendment Adopted: April 10, 2025

Passed by Senate: April 15, 2025

Enrolled and Transmitted to Governor: April 16, 2025

Notification of Act 939: April 21, 2025

The bill underwent several readings and amendments before being passed, including a recommendation from the committee to adopt Amendment #1, which clarified the provisions regarding the preparation and approval of plans and specifications.

Conclusion

Act 939 represents a significant update to the bidding procedures for construction projects in Arkansas, particularly benefiting smaller projects and enhancing the operational efficiency of state agencies. By reducing the bureaucratic burden for certain projects, the legislation aims to facilitate timely maintenance and improvements to state facilities.

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