HB137: HB137 Contracts; increase dollar value of certain public works contracts exempt from provisions relating to retention of contractual payments

Georgia law sets dollar thresholds that determine when public works and purchasing contracts must follow special rules, such as withholding part of a contractor's payment until work is finished, requiring competitive bidding, or getting state review. This bill raises many of those thresholds, mostly from $100,000 to $250,000, and in a few cases from $150,000 or $200,000 to $250,000. The changes touch contract retention rules for public works (O.C.G.A. Title 13), in-state purchasing preference rules for public schools, school construction bidding requirements, limits on what counties and cities can negotiate without competitive bids, exemptions from the state's public works bidding law, and the threshold that triggers state Department of Administrative Services review of state agency construction contracts. The bill repeals conflicting laws and does not state a delayed effective date beyond standard law.

• Raises the contract value exempt from public works payment retention rules (O.C.G.A. § 13-10-80) from $150,000 to $250,000.
• Raises the purchase value that triggers in-state manufacturing preference considerations for public schools from $100,000 to $250,000.
• Raises the threshold requiring competitive bidding for public school construction contracts from $100,000 to $250,000.
• Raises the contract amount counties and municipalities can negotiate without competitive bidding, from $200,000 to $250,000, and raises the two-estimate requirement threshold to match.
• Raises the cost threshold below which public works construction projects are exempt from Georgia's public bidding law from $100,000 to $250,000.
• Raises the dollar amount that triggers mandatory review and negotiation of state construction contracts by the Department of Administrative Services from $100,000 to $250,000.

Contractors and subcontractors on public works projects, county and municipal governments, local school boards and school districts, state agencies procuring construction services, and the Georgia Department of Administrative Services, which oversees state purchasing and contract approval.

By raising these thresholds, more contracts will fall below the dollar amounts that trigger competitive bidding, payment retention protections, and state oversight, meaning local governments and school districts can negotiate more contracts directly without the added bidding or review process that used to apply at lower dollar amounts.

• Section 1 raises the exemption from public works payment retention requirements (O.C.G.A. § 13-10-80) from $150,000 to $250,000.
• Section 2 raises the purchase value triggering in-state manufacturer preference review for school district purchases from $100,000 to $250,000.
• Section 3 raises the threshold requiring public advertising and competitive award of school construction contracts from $100,000 to $250,000.
• Sections 4 and 5 raise the contract amount counties and municipalities may negotiate without competitive bidding from $200,000 to $250,000, and raise the two-estimate requirement threshold correspondingly.
• Section 6 raises the cost exemption from Georgia's public works bidding chapter from $100,000 to $250,000 for both general projects and self-performed government projects with private subcontracts.
• Section 7 raises the threshold requiring state construction and public works contracts to be conducted through the Department of Administrative Services from $100,000 to $250,000.
• Section 8 repeals conflicting laws.

1. 2025-05-12Effective Date 2025-07-01
2. 2025-05-12Act 129
3. 2025-05-12House Date Signed by Governor (House)
4. 2025-04-10House Sent to Governor (House)
5. 2025-03-31Senate Passed/Adopted (Senate)
6. 2025-03-31Senate Third Read (Senate)
7. 2025-03-18Senate Read Second Time (Senate)
8. 2025-03-13Senate Committee Favorably Reported (Senate)

• Victor Anderson (R, HD-010)Primary sponsor
• Eddie Lumsden (R, HD-012)
• Lee Hawkins (R, HD-027)
• Bill Yearta (R, HD-152)
• Rob Leverett (R, HD-123)
• John LaHood (R, HD-175)
• Matt Brass (R, SD-006)

1. PassedHouse voteFebruary 12, 2025

   152 yea, 9 nay (12 not voting, 7 absent)

   Passage: House Vote #28

2. PassedSenate voteMarch 31, 2025

   45 yea, 5 nay (4 not voting, 2 absent)

   Passage: Senate Vote #343

• public works contracts
• school construction bidding
• county and municipal contracting
• state purchasing rules
• construction law