GeorgiaHB 1372025-2026 Regular SessionHouseWALLET

Contracts; increase dollar value of certain public works contracts exempt from provisions relating to retention of contractual payments

Sponsored By: Victor Anderson (Republican), Lee Hawkins (Republican), John LaHood (Republican), Rob Leverett (Republican), Eddie Lumsden (Republican), Bill Yearta (Republican)

Became Law

Governmental AffairsState and Local Governmental OperationsGeneral Bill

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 3 benefits, 0 costs, 3 mixed.

Fewer small public works need bidding

If a government can do a public works project for under $250,000, the formal bidding law does not apply. If it then hires any part estimated above $250,000, that part must follow the bidding rules. Projects cannot be split to dodge the rules.

Higher threshold for state contract oversight

For state construction and public works, the Department of Administrative Services handles and negotiates contracts only when they exceed $250,000. Spending up to $250,000 remains subject to review, and the Department can approve noncompetitive purchases up to $250,000. This raises the level for central oversight and can speed smaller projects.

More small public works skip retention

Non-DOT public works jobs at or below $250,000 at award are exempt from retention-of-pay rules. Jobs that last 45 days or less are also exempt. This eases cash flow and paperwork for many small contractors. This change does not apply to DOT projects.

Higher limits for county and city road contracts

Counties and cities now use a $250,000 threshold for road work contracting rules. Jobs over $20,000 and under $250,000 must include at least two written estimates. Listed exceptions remain, like professional services, emergencies, and design-build. This eases some formal steps for smaller jobs but adds the two-estimate step to more mid-size jobs.

Higher threshold for school construction bidding

Public school construction contracts over $250,000 must be publicly advertised and awarded through open competition. Contracts at $250,000 or less do not need that formal process. Districts face fewer bidding steps on smaller projects, but some contractors may see fewer open-bid chances on those jobs.

School purchase preference now above $250,000

Local schools consider in-state preference for supplies, materials, equipment, or farm products only when a purchase is over $250,000. Schools cannot split purchases to avoid this rule. For buys over $250,000, schools consider written info from bidders on the impact to Georgia’s economy and tax revenue, and must not lower quality when using the preference.

Sponsors & Cosponsors

Cosponsors

Matt Brass
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 197 • No: 14

Senate vote • 3/31/2025

PASSAGE

Yes: 45 • No: 5

House vote • 2/12/2025