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GeorgiaHB 1372025-2026 Regular SessionHouse

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)

Signed by Governor

Governmental AffairsState and Local Governmental OperationsGeneral Bill

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Bill Overview

Analyzed Economic Effects

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

Local governments can negotiate larger road contracts

Georgia counties and cities can use the road-contract negotiation exception for spending under $250,000, up from under $200,000. Contracts over $20,000 and under $250,000 require at least two estimates before award. Other listed legal exceptions remain in place.

More public construction escapes bidding rules

Public works projects costing less than $250,000 are exempt from the covered bidding rules, up from less than $100,000. Governments cannot split projects to avoid these rules. Work done by government staff remains exempt. A privately contracted project portion falls under the rules when its estimated cost exceeds $250,000, up from $100,000.

More public contracts escape payment holdbacks

The law raises the public works payment-retention exemption from $150,000 to $250,000. Contracts qualify if their value at award is $250,000 or less, or their duration is 45 days or less. Payment-retention rules govern money held back from contractors. This exemption excludes Georgia Department of Transportation contracts for state road construction, improvements, maintenance, and related incidental work.

State agencies gain larger contracting flexibility

Georgia raises its centralized state construction and public works contracting threshold from $100,000 to $250,000. Above $250,000, the Department of Administrative Services must conduct and negotiate contracts unless a legal exception applies. Spending under $250,000 still requires department review and approval. The department can approve noncompetitive spending up to $250,000.

Schools raise construction bidding threshold

The law raises the public school construction bidding threshold from $100,000 to $250,000. Contracts over $250,000 must be publicly advertised and awarded through open, competitive bidding. This applies regardless of the funding source. Contracts above $100,000 through $250,000 are no longer covered by this specific requirement.

Schools raise Georgia goods review threshold

Public schools must favor Georgia-made supplies, materials, equipment, and farm products where practical without sacrificing quality. For purchases over $250,000, districts must consider bidders’ information when judging whether that preference is reasonable. This review threshold rises from $100,000; economic estimates must be written and can cover economic output and public revenue. Instructional materials and drinks for immediate consumption are excluded. Purchases cannot be split to avoid the requirement.

Sponsors & Cosponsors

Sponsors

  • Victor Anderson

    Republican • House

  • Lee Hawkins

    Republican • House

  • John LaHood

    Republican • House

  • Rob Leverett

    Republican • House

  • Eddie Lumsden

    Republican • House

  • Bill Yearta

    Republican • House

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 • Other: 4

House vote • 2/12/2025

PASSAGE

Yes: 152 • No: 9 • Other: 12

Actions Timeline

  1. Effective Date

    7/1/2025

  2. House Date Signed by Governor

    5/12/2025House

  3. Act 129

    5/12/2025

  4. House Sent to Governor

    4/10/2025House

  5. Senate Third Read

    3/31/2025Senate

  6. Senate Passed/Adopted

    3/31/2025Senate

  7. Senate Read Second Time

    3/18/2025Senate

  8. Senate Committee Favorably Reported

    3/13/2025Senate

  9. Senate Read and Referred

    2/13/2025Senate

  10. House Third Readers

    2/12/2025House

  11. House Passed/Adopted

    2/12/2025House

  12. House Committee Favorably Reported

    2/6/2025House

  13. House Second Readers

    1/29/2025House

  14. House First Readers

    1/28/2025House

  15. House Hopper

    1/27/2025House

Bill Text

  • HB 137/AP* (v3)

    PDF

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