HB 377: Buildings and housing; manufactured homes; provisions

Currently, Georgia counties and municipalities generally must get at least two cost estimates before awarding contracts between $20,000 and $250,000, and state agencies already follow a separate qualifications-based process under O.C.G.A. Chapter 22 of Title 50 when hiring architects, engineers, and similar professionals. This bill extends that state process to local governments. It creates a new Code Section 36-91-3 requiring counties, municipalities, and consolidated governments to select architects, interior designers, land surveyors, landscape architects, and professional engineers based on qualifications rather than low bids, for projects above the cost thresholds set in the state's professional services law. The bill also updates definitions in Chapter 22 of Title 50 so that 'agency' includes both state agencies and local governments, and it exempts these professional services contracts from the old two-estimate requirement. Local governments would be allowed to negotiate directly if only one qualified firm responds, use multiparty on-demand contracts, and expand existing provider relationships without a new competition. The changes take effect July 1, 2027.

• Requires counties and municipalities to use a qualifications-based selection process, not a low-bid or two-estimate process, when hiring architects, engineers, surveyors, landscape architects, or interior designers above set cost thresholds.
• Creates a new Code section (O.C.G.A. § 36-91-3) laying out how local governments must advertise, evaluate, and negotiate contracts for these professional services.
• Exempts these professional services contracts from the existing rule requiring at least two cost estimates for county and municipal contracts between $20,000 and $250,000.
• Expands Georgia's existing state professional services law (O.C.G.A. Chapter 22 of Title 50) so its rules and definitions now cover local governments as well as state agencies.
• Allows local governments to negotiate directly with a sole responding firm, enter multiparty on-demand contracts, and expand work with an existing provider without a new competitive process.
• Sets an effective date of July 1, 2027.

Counties, municipalities, and consolidated governments in Georgia that hire architects, professional engineers, land surveyors, landscape architects, or interior designers; those professional firms seeking public contracts; and state agencies whose existing procurement rules under Chapter 22 of Title 50 are being extended to cover local governments.

Local governments would have to change how they hire design and engineering professionals, moving from a cost-estimate-based approach toward selecting firms based on qualifications first and negotiating fees afterward. This could affect which firms win public design and construction-related contracts and how quickly local projects move forward.

• Section 1 and 2 revise O.C.G.A. §§ 32-4-63 and 32-4-113 so county and municipal contracts for architects, engineers, surveyors, landscape architects, and interior designers are no longer subject to the two-estimate rule and must instead follow the new Section 36-91-3 process.
• Section 3 adds O.C.G.A. § 36-91-3, requiring local governments to select these professionals based on demonstrated competence and qualifications, sets rules for single-response situations, bars requiring cost estimates before negotiations, and allows multiparty on-demand contracts.
• Section 4 amends O.C.G.A. § 50-22-1 to state that the purpose of the professional services law now includes managerial control by local governments, not just the state.
• Section 5 revises definitions in O.C.G.A. § 50-22-2, redefining 'agency' to include local governments and adding a definition of 'local government' as a county, municipality, or consolidated government.
• Section 5 also changes the 'project' definition so a project is one with a preliminary construction cost estimate over $1 million or professional service costs over $75,000.
• Sections 6 through 8 update O.C.G.A. §§ 50-22-4, 50-22-7, and 50-22-8 to apply existing state selection procedures, exemptions, and rulemaking authority to local governments alongside state agencies.
• Section 9 sets the effective date as July 1, 2027.

1. 2026-03-03Senate Passed/Adopted By Substitute (Senate)
2. 2026-03-03Senate Third Read (Senate)
3. 2026-02-12Senate Committee Favorably Reported By Substitute (Senate)
4. 2026-01-28Senate Withdrawn & Recommitted (Senate)
5. 2026-01-12Senate Recommitted (Senate)
6. 2026-01-12Senate Taken from Table (Senate)
7. 2025-04-02Senate Tabled (Senate)
8. 2025-03-31Senate Committee Favorably Reported By Substitute (Senate)

• Rob Leverett (R, HD-123)Primary sponsor
• James Burchett (R, HD-176)
• Josh Bonner (R, HD-073)
• Will Wade (R, HD-009)
• Spencer Frye (D, HD-122)
• Carl Gilliard (D, HD-162)
• Ed Setzler (R, SD-037)

1. PassedHouse voteFebruary 28, 2025

   166 yea, 0 nay (5 not voting, 9 absent)

   Passage: House Vote #118

2. PassedSenate voteMarch 3, 2026

   45 yea, 6 nay (1 not voting, 3 absent)

   Passage By Substitute: Senate Vote #602

• local government contracting
• professional services procurement
• architects and engineers
• public bidding rules
• county and municipal government