HB 5582

relating to the design-build method for certain government
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter G, Chapter 2269, Government Code, is
amended by adding Section 2269.3035 to read as follows:
Sec. 2269.3035.  ALTERNATIVE DESIGN-BUILD METHODS FOR WATER
AND WASTEWATER INFRASTRUCTURE.  (a)  A governmental entity may use
the following methods for the construction, rehabilitation,
alteration, or repair of water or wastewater infrastructure:
(1)  a method in which a single fixed price for both
design and construction is established at the time the contract
with the design-build firm is signed by the parties, commonly known
as "fixed price design-build"; or
(2)  a method in which the design-build firm is
involved early in the process of developing the design and the
contract includes a stepped payment scheme for design and
construction services, commonly known as "progressive
(b)  The requirements of this subchapter apply to a method
described by Subsection (a) to the extent practicable.
SECTION 2.  Section 2269.352, Government Code, is amended to
Sec. 2269.352.  APPLICABILITY.  This subchapter applies to a
governmental entity, including [that:
[(1)  has a population of more than 100,000 within the
entity's geographic boundary or service area; or
[(2)  is] a board of trustees governed by Chapter 54,
SECTION 3.  Section 2269.353(b), Government Code, is amended
(b)  A contract for a project under this subchapter may cover
only a single integrated project.  A governmental entity may not
enter into a contract for aggregated projects at multiple
locations.  For purposes of this subsection:
(1)  if a metropolitan transit authority created under
Chapter 451, Transportation Code, enters into a contract for a
project involving a linear transit project with multiple stops
along the project route for boarding passengers, created under
Chapter 451, Transportation Code, the linear transit project is a
(2)  a water or wastewater infrastructure project
[treatment plant], including a desalination plant, that includes
treatment facilities, well fields, pump stations, water storage,
and pipelines, is a single integrated project.
SECTION 4.  Subchapter H, Chapter 2269, Government Code, is
amended by adding Section 2269.3535 to read as follows:
Sec. 2269.3535.  ALTERNATIVE DESIGN-BUILD PROCEDURES FOR
WATER AND WASTEWATER INFRASTRUCTURE.  (a)  A governmental entity
may use a design-build method described by Section 2269.3035(a) for
the construction, rehabilitation, alteration, or repair of water or
(b)  The requirements of this subchapter apply to a method
described by Subsection (a) to the extent practicable.
SECTION 5.  This Act takes effect September 1, 2025.