HB 137: Contracts; increase dollar value of certain public works contracts exempt from provisions relating to retention of contractual payments

Georgia law sets dollar thresholds that decide when public construction and purchasing contracts must go through competitive bidding, be reviewed by the Department of Administrative Services, or follow special rules like withholding part of a contractor's payment until work is finished. HB 137 raises many of these thresholds, most commonly from $100,000 or $150,000 up to $250,000, and in some cases from $200,000 to $250,000. The bill touches contracts for public works, purchases and construction contracts for public schools, county and municipal road contracts, public works bidding generally, and state agency construction contracts handled by the Department of Administrative Services. By raising these thresholds, more contracts fall below the dollar amount that triggers requirements such as advertised competitive bidding, in-state preference review, or state department oversight. The bill repeals conflicting laws and does not state a delayed effective date beyond standard practice.

• Raises the contract value exempt from Georgia's retention-of-payment law (O.C.G.A. § 13-10-80) for public works contracts from $150,000 to $250,000.
• Increases the purchase amount that triggers in-state manufacturing preference review for public school purchases (O.C.G.A. § 20-2-500) from $100,000 to $250,000.
• Raises the threshold above which public school construction contracts must be publicly advertised and competitively bid (O.C.G.A. § 20-2-520) from $100,000 to $250,000.
• Increases the expenditure limits that let counties and municipalities negotiate road contracts without formal bidding (O.C.G.A. §§ 32-4-63, 32-4-113) from $200,000 to $250,000, and raises the two-estimate requirement threshold to match.
• Raises the cost threshold exempting public works construction projects from competitive bidding requirements (O.C.G.A. § 36-91-22) from $100,000 to $250,000.
• Increases the expenditure level above which state agency construction contracts must go through the Department of Administrative Services (O.C.G.A. § 50-5-72) from $100,000 to $250,000.

Contractors and subcontractors bidding on public works, county and municipal governments awarding road contracts, local school boards purchasing supplies or building schools, state agencies procuring construction services, and the Department of Administrative Services, which reviews and negotiates many of these contracts.

Because more contracts will fall under the new, higher dollar thresholds, fewer contracts will require competitive bidding, in-state preference review, or state oversight before being awarded. This could speed up smaller construction and purchasing decisions for schools, counties, cities, and state agencies, while reducing the number of contracts subject to those safeguards.

• Section 1 raises the exemption from payment retention requirements for public works contracts from $150,000 to $250,000 (O.C.G.A. § 13-10-80).
• Section 2 raises the purchase threshold triggering in-state manufacturing preference consideration for school purchases from $100,000 to $250,000 (O.C.G.A. § 20-2-500).
• Section 3 raises the threshold requiring competitive bidding for public school construction contracts from $100,000 to $250,000 (O.C.G.A. § 20-2-520).
• Sections 4 and 5 raise the expenditure thresholds for county and municipal road contract negotiation and the two-estimate requirement from $200,000 to $250,000 (O.C.G.A. §§ 32-4-63, 32-4-113).
• Section 6 raises the cost exemption for public works construction bidding requirements from $100,000 to $250,000 (O.C.G.A. § 36-91-22).
• Section 7 raises the threshold for state agency construction contracts requiring Department of Administrative Services negotiation and approval from $100,000 to $250,000 (O.C.G.A. § 50-5-72).
• Section 8 repeals conflicting laws.

1. 2025-07-01Effective Date
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-10)Primary sponsor
• Eddie Lumsden (R, HD-12)
• Lee Hawkins (R, HD-27)
• Bill Yearta (R, HD-152)
• Rob Leverett (R, HD-123)
• John LaHood (R, HD-175)
• Matt Brass (R, SD-6)

1. PassedHouse voteFebruary 12, 2025

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

   PASSAGE: House Vote #28

2. PassedSenate voteMarch 31, 2025

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

   PASSAGE: Senate Vote #343

• public works contracts
• school construction bidding
• county road contracts
• state purchasing rules
• construction bidding thresholds