By Rebekah Morris for AZ Builder’s Exchange, LLC
An industry coalition led by the Arizona Chapter of the AGC has successfully guided legislation through the state government, and SB 1054 has been signed by Gov. Katie Hobbs. The bill extends the use of horizontal Alternative Project Delivery Method contracts for another five years to 2030. The bill was unanimously approved.
As reported in AZBEX last August, Arizona Revised Statutes titles 28 and 34 had provisions that were set to expire in 2025. If not renewed, cities, towns, counties and state agencies would not have tools such as Design-Build, Job-Order-Contract, and Construction Manager at Risk at their disposal to deliver roadway and utility projects. (AZBEX, Aug. 11, 2023)
Vertical building projects are covered under ARS Title 41 and have no sunset provisions.
Intentionally Flying Under the Radar
According to a memo distributed on May 14 by AGC APDM Committee Co-Chairs Yvette LeDesma of Kiewit and Dan Spitza of Achen-Gardner Construction, the environment at the state legislature is “acrimonious, especially for transportation related bills,” which explains the lack of marketing push on the process.
Acrimony indeed: Proposition 479, the regional half-cent sales tax extension, endured a protracted fight at the legislature before finally being approved and signed by the Governor. That legislation brings the tax extension to voters for approval.
The bitter environment in the Legislature has also carried over to repeated conflicts between the Legislature and the Governor’s Office. As of April 22, Hobbs has vetoed a record 185 bills since taking office in January 2023.
Future Legislation to Build on APDM Successes, Propose Improvements
From the AGC memo, there is consensus on proposing additional legislation in 2025 and possibly into the 2026 and 2027 legislative sessions. Input will be gathered from groups representing public owners, the engineering community and contractors for potential changes to the existing APDM framework. The AGC will take the lead on organizing input from these groups and running the gauntlet from concept to approved legislation.