# Tenn. Code Ann. § 54-1-119: Design-build and performance-based asset maintenance contracts - Selection criteria - Funding - Notice > Tennessee · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-119 ## Section - **Citation:** Tenn. Code Ann. § 54-1-119 - **Heading:** Design-build and performance-based asset maintenance contracts - Selection criteria - Funding - Notice - **Jurisdiction:** Tennessee - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** TN Code / Title 54 / Chapter 1 / Section 54-1-119 ## Text (a) As used in this section: (1) "Design-build contract" means: (A) An agreement that provides for the design and construction of a project under a single contract, which may include, but is not limited to, design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation, and the construction, reconstruction, repair, or maintenance of the project; or (B) An agreement that provides for the design and reconstruction, repair, or maintenance of highway facilities under a single contract, which may include, but is not limited to, design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation services, and the reconstruction, repair, or maintenance of highway facility components along specific roadway corridors or within a geographic area; and (2) "Performance-based asset maintenance contract" means an agreement, typically long-term, that provides for managing and performing the inspection and reconstruction, repair, or maintenance of multiple highway facility components for specific roadway corridors or within a geographic area, where the contract sets specific performance standards, rather than prescriptive work tasks and deadlines, and may include incentive or disincentive provisions to promote achievement of the desired outcomes. Such contracts may also include third-party damage repair and claim management services, and may also provide for design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation activities. Types of projects not suited for performance-based asset maintenance contracts include, but are not limited to, resurfacing and bridge repair projects. (b) Notwithstanding another law to the contrary, the department may award design-build contracts and performance-based asset maintenance contracts in accordance with this section. (c) Selection criteria for a design-build contract or a performance-based asset maintenance contract must include the cost, and may include qualifications, time of completion, innovation, design and construction quality, design innovation, or other technical or quality related criteria, as determined by the department. (d) The department may award a stipulated fee to design-build firms that submit responsive proposals but are not awarded the design-build contract. The department is not required to award a stipulated fee, but if it elects to award the fee, the amount of the stipend and the terms under which stipends are to be paid must be stated in the request for proposals. (e) Prior to executing a design-build contract under this section, the commissioner shall send written notice to the chair of the transportation and safety committee of the senate and the chair of the transportation committee of the house of representatives. (f) If a proposed design-build contract has a total estimated contract amount in excess of one hundred million dollars ($100,000,000), the department shall specifically identify the project as a design-build project in the transportation improvement program submitted annually to the general assembly in support of the commissioner's annual funding recommendations. (g) The department may establish agency policy, or the department may promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, or both, in furtherance of this part. Amended by 2023 Tenn. Acts, ch. 159, s 2, eff. 4/17/2023. Amended by 2013 Tenn. Acts, ch. 236, s 90, eff. 4/19/2013. Acts 2007, ch ch 274, § 1. ner's annual funding recommendations. (g) The department may establish agency policy, or the department may promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, or both, in furtherance of this part. Amended by 2023 Tenn. Acts, ch. 159, s 2, eff. 4/17/2023. Amended by 2013 Tenn. Acts, ch. 236, s 90, eff. 4/19/2013. Acts 2007, ch ch 274, § 1. (a) As used in this section: (1) "Design-build contract" means: (A) An agreement that provides for the design and construction of a project under a single contract, which may include, but is not limited to, design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation, and the construction, reconstruction, repair, or maintenance of the project; or (B) An agreement that provides for the design and reconstruction, repair, or maintenance of highway facilities under a single contract, which may include, but is not limited to, design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation services, and the reconstruction, repair, or maintenance of highway facility components along specific roadway corridors or within a geographic area; and (2) "Performance-based asset maintenance contract" means an agreement, typically long-term, that provides for managing and performing the inspection and reconstruction, repair, or maintenance of multiple highway facility components for specific roadway corridors or within a geographic area, where the contract sets specific performance standards, rather than prescriptive work tasks and deadlines, and may include incentive or disincentive provisions to promote achievement of the desired outcomes. Such contracts may also include third-party damage repair and claim management services, and may also provide for design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation activities. Types of projects not suited for performance-based asset maintenance contracts include, but are not limited to, resurfacing and bridge repair projects. (1) "Design-build contract" means: (A) An agreement that provides for the design and construction of a project under a single contract, which may include, but is not limited to, design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation, and the construction, reconstruction, repair, or maintenance of the project; or (B) An agreement that provides for the design and reconstruction, repair, or maintenance of highway facilities under a single contract, which may include, but is not limited to, design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation services, and the reconstruction, repair, or maintenance of highway facility components along specific roadway corridors or within a geographic area; and (A) An agreement that provides for the design and construction of a project under a single contract, which may include, but is not limited to, design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation, and the construction, reconstruction, repair, or maintenance of the project; or (B) An agreement that provides for the design and reconstruction, repair, or maintenance of highway facilities under a single contract, which may include, but is not limited to, design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation services, and the reconstruction, repair, or maintenance of highway facility components along specific roadway corridors or within a geographic area; and des for the design and reconstruction, repair, or maintenance of highway facilities under a single contract, which may include, but is not limited to, design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation services, and the reconstruction, repair, or maintenance of highway facility components along specific roadway corridors or within a geographic area; and (2) "Performance-based asset maintenance contract" means an agreement, typically long-term, that provides for managing and performing the inspection and reconstruction, repair, or maintenance of multiple highway facility components for specific roadway corridors or within a geographic area, where the contract sets specific performance standards, rather than prescriptive work tasks and deadlines, and may include incentive or disincentive provisions to promote achievement of the desired outcomes. Such contracts may also include third-party damage repair and claim management services, and may also provide for design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation activities. Types of projects not suited for performance-based asset maintenance contracts include, but are not limited to, resurfacing and bridge repair projects. (b) Notwithstanding another law to the contrary, the department may award design-build contracts and performance-based asset maintenance contracts in accordance with this section. (c) Selection criteria for a design-build contract or a performance-based asset maintenance contract must include the cost, and may include qualifications, time of completion, innovation, design and construction quality, design innovation, or other technical or quality related criteria, as determined by the department. (d) The department may award a stipulated fee to design-build firms that submit responsive proposals but are not awarded the design-build contract. The department is not required to award a stipulated fee, but if it elects to award the fee, the amount of the stipend and the terms under which stipends are to be paid must be stated in the request for proposals. (e) Prior to executing a design-build contract under this section, the commissioner shall send written notice to the chair of the transportation and safety committee of the senate and the chair of the transportation committee of the house of representatives. (f) If a proposed design-build contract has a total estimated contract amount in excess of one hundred million dollars ($100,000,000), the department shall specifically identify the project as a design-build project in the transportation improvement program submitted annually to the general assembly in support of the commissioner's annual funding recommendations. (g) The department may establish agency policy, or the department may promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, or both, in furtherance of this part. Amended by 2023 Tenn. Acts, ch. 159, s 2, eff. 4/17/2023. Amended by 2013 Tenn. Acts, ch. 236, s 90, eff. 4/19/2013. Acts 2007, ch ch 274, § 1. ## Nearby sections - [Tenn. Code Ann. § 54-1-101 Duties of commissioner](https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-101.md) - [Tenn. Code Ann. § 54-1-102 Status of highway projects - Reports to general assembly](https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-102.md) - [Tenn. Code Ann. § 54-1-103 Legislative findings and intent - Crash test labs](https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-103.md) - [Tenn. Code Ann. § 54-1-104 Report of findings regarding roads with elevated injuries to bicyclists and pedestrians - Identification of design factors - Dissemination of report](https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-104.md) - [Tenn. Code Ann. § 54-1-118 Contracting with University of Tennessee](https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-118.md) - [Tenn. Code Ann. § 54-1-119 Design-build and performance-based asset maintenance contracts - Selection criteria - Funding - Notice](https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-119.md) - [Tenn. Code Ann. § 54-1-124 Funds for contracts with disadvantaged business concerns or enterprises](https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-124.md) - [Tenn. Code Ann. § 54-1-125 Reserved](https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-125.md) - [Tenn. Code Ann. § 54-1-126 Responsibility for maintenance of public roads, streets, highways or bridges](https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-126.md) - [Tenn. Code Ann. § 54-1-127 Installation of natural gas line via bridge attachment](https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-127.md) - [Tenn. Code Ann. § 54-1-128 Borrow excavations - Exemption of certain road work construction from local and regional zoning and planning regulations](https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-128.md) - [Tenn. Code Ann. § 54-1-129 Informational signs](https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-129.md) - [Tenn. Code Ann. § 54-1-130 Allowable overhead, costs and rates for design and consultant contracts](https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-130.md) - [Tenn. Code Ann. § 54-1-131 Web page](https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-131.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T54_C1_S54-1-119. Check the current official text before relying on it. Not legal advice.