SB332 Alabama 2025 Session

Summary

Primary Sponsor

Sam GivhanSenator

Republican

Session

2025 Regular Session

Title

Public works; alternative project delivery methods authorized; adoption of administrative rules authorized; protest procedures and reporting requirements established; Public Works Advisory Council established

Summary

SB332 allows Alabama public owners to use new delivery methods for public works and creates rules, protest procedures, reporting, and a Public Works Advisory Council to oversee them.

What This Bill Does

It authorizes alternative project delivery methods—Construction Manager at Risk, Design-Build, Design-Build-Finance-Operate-Maintain, Design-Build-Operate-Maintain, and Progressive Design-Build—in addition to the traditional design-bid-build, with criteria for when they can be used. The Department of Finance must adopt administrative rules, establish protest processes, and require reporting; a Public Works Advisory Council is created to advise on these methods. Bonding and security requirements differ for alternative methods, project documentation requirements (including 70% complete designs for some methods), and there are formal protest and appeal procedures. Many provisions have sunset dates, with an anticipated effective date of October 1, 2025 and several sections repealing on October 1, 2031.

Who It Affects

• Public awarding authorities and public entities (state, counties, municipalities, K-12 schools, community colleges, and public universities) would gain authority to use alternative delivery methods, must obtain department approval, follow new administrative rules, and file periodic reports on projects.
• Contractors, bidders, design-build teams, CMAR teams, subcontractors, suppliers, and sureties would face new bonding, insurance, protest, and reporting requirements; they could protest project approvals and must be evaluated under new best-value or qualifications-based processes.

Key Provisions

• Authorizes alternative project delivery methods (Construction Manager at Risk, Design-Build, Design-Build-Finance-Operate-Maintain, Design-Build-Operate-Maintain, Progressive Design-Build) in addition to the traditional Design-Bid-Build, with criteria for approval.
• Requires the Department of Finance to adopt administrative rules and to consult with the Public Works Advisory Council; rules cover criteria, security provisions, solicitation content, evaluation methods, contract clauses, and protest procedures.
• Imposes bonding requirements: for traditional Design-Bid-Build, a 100% performance bond and at least 50% payment bond; for alternative methods, a 100% performance bond and 100% payment bond of construction work cost, with possible reductions to not less than 50% under certain conditions and excluding nonconstruction costs.
• Sets design-document requirements: Design-Build and Progressive Design-Build proposals must include a 70% complete set of construction documents; Construction Manager at Risk uses GMP based on construction documents and specifications.
• Requires pre-approval by the department for any project using alternative methods; agencies must notify the department at least 30 days before solicitation and publicly post the project for review for at least five days prior to approval.
• Includes specific rules for educational institutions and other public bodies regarding thresholds and limits on how often they may use alternative methods within a fiscal year.
• Establishes a protest process: bona fide bidders may protest the approval or award; protests go to the Division of Construction Management, with a five-day written decision timeline by the department, and a possible appeal to the Director of Finance; decisions are not considered contested cases under the Alabama Administrative Procedure Act.
• Creates the State Public Works Advisory Council with broad representation from counties, municipalities, K-12 education, higher education, and private sector groups; the council advises, conducts studies, and makes recommendations; administered by the Department of Finance; meets at least annually and has sunset dates (2031).
• Requires reporting after project completion and annual reporting for similar projects; failure to report can block future use of alternative methods; reports cover project scope, costs, schedule, changes, prequalification, evaluation methods, protest issues, and recommendations.
• Exemptions and clarifications: the act notes that the Transportation Department and certain statutory provisions outside this chapter are not subject to these new rules; several sections are designed to sunset in 2031, while the act takes effect on October 1, 2025.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Competitive Bidding