S.B. No. 794 introduces a new framework for selecting engineers and general contractors for transportation-related construction projects in Texas, specifically through the "construction manager-general contractor method." This bill establishes a new subchapter in the Transportation Code that outlines definitions, processes, and requirements for this selection method, including the evaluation of proposals and contract negotiations. Key provisions allow the Texas Department of Transportation (TxDOT) to bypass certain procurement procedures, establish an evaluation team to assess proposals, and require construction managers to perform a minimum percentage of construction work. The bill also mandates the adoption of weighted selection criteria and emphasizes transparency by requiring public disclosure of rankings and the use of independent cost estimators.

Additionally, the bill requires that an authority select an engineer to prepare construction documents before choosing a construction manager and mandates the formation of an evaluation team with specific composition requirements. It allows for a one-step or two-step approach in the selection process and specifies the necessary information for requests for proposals. The bill also emphasizes the importance of validating negotiated costs through independent estimators and mandates public disclosure of selection rankings within seven days of awarding a contract. Performance and payment bonds must be delivered within ten days of contract award unless alternative financial security is provided. The bill is set to take effect immediately upon receiving a two-thirds vote or on September 1, 2025, if not.

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