Assigned to TTMC FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
REVISED
FACT SHEET FOR S.B. 1054
state construction project delivery methods
Purpose
Extends, until December 31, 2030, the authorization to commence design-build projects
and procure construction services and horizontal construction using alternative methods of project
delivery.
Background
Statute outlines an alternative process to professional service negotiations by which an
agent may award a single contract for design-build construction services or job-order-contracting
construction services (A.R.S. § 28-7363). An agent is any local municipality, including any county
board of supervisors and any agent-authorized representative to act as an agent for the purpose of
authorizing necessary change orders to previously awarded contracts (A.R.S. § 34-101).
Construction services, for construction-manager-at-risk, design-build and job-order-contracting
project delivery methods, are either: 1) construction, excluding services, through the
construction-manager-at-risk or job-order-contracting project delivery methods; or 2) a
combination of construction and related services, as elected by the agent. Horizontal construction
is the construction of highways, roads, streets, bridges, canals, floodways, earthen dams, landfills,
airport runways, taxiways and aprons and light rail, excluding any related rail stations,
maintenance facilities or parking facilities (A.R.S. § 34-603).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Authorizes, until December 31, 2030, rather than December 31, 2025, the Arizona Department
of Transportation (ADOT) to:
a) commence a design-build project; and
b) procure construction services using the construction-manager-at-risk or job-order-contracting
construction services method of project delivery.
2. Allows, until December 31, 2030, rather than June 30, 2025, an agent to procure horizontal
construction using:
a) construction-manager-at-risk construction services; and
b) the construction-manager-at-risk, design-build or job-order-contracting method of project
delivery. FACT SHEET – Revised
S.B. 1054
Page 2
3. Grandfathers the authorization of contracts solicited by ADOT or executed by an agent on or
before December 31, 2030.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
Revisions
1. Corrects the provision to grandfather contracts solicited by ADOT or executed by an agent on
or before December 31, 2030, rather than December 31, 2025.
2. Makes technical changes.
Prepared by Senate Research
April 22, 2024
KJA/sdr/slp