HB 2692 Arizona House · 57th Legislature - Second Regular Session

procurement; professionals; construction services

HB 2692 amends Arizona's definitions for public procurement of construction services, clarifying how government agencies (like counties, cities, and districts) contract for projects. It defines key terms such as "construction services," "design-build," and "construction-manager-at-risk" to specify how design and construction work can be bundled or separated in contracts. The bill explicitly states that routine maintenance, repairs, and operations of existing facilities do not count as "construction," and it allows agencies to include related services like finance or preconstruction in contracts under certain delivery methods. This update standardizes terminology for government procurement processes without creating new requirements for agencies or contractors.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

House Passage

Feb 2026

Senate Passage

Governor

Introduced Jan 22, 2026 Last action Mar 10, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → House Engrossed Version (02/26/2026) · 5 edits · Feb 26, 2026

MODERATE

The bill was reorganized and expanded to include new project delivery methods like 'progressive design-build' and specific rules for federally funded horizontal construction. It added strict deadlines banning these new methods after December 31, 2030, and clarified how subcontractors must be selected based on qualifications rather than just price.

Scope change

The bill's scope expanded to explicitly cover 'progressive design-build' and 'horizontal construction' (highways, rail, etc.), and it now includes specific requirements for federally funded projects that mandate price competition.

DEFINITION

Added new definitions for 'progressive design-build' and clarified 'horizontal construction' to include specific infrastructure types like light rail and pipelines.

TIMELINE

Established a hard deadline of December 31, 2030, after which agents cannot use progressive design-build or specific federal two-step competition methods for horizontal construction.

REQUIREMENT

Mandated that subcontractors must be selected based on qualifications alone or a combination of qualifications and price, strictly prohibiting selection based on price alone.

Updated procurement rules to allow a 'two-step' competition for federally funded horizontal construction projects, separating the selection of qualified firms from the price negotiation.

Required licensed contractors performing horizontal construction to self-perform at least 45% of the work (30% for light rail) using their own organization.

Floor votes · House Feb 26, 2026

How they voted

33–21

Passed · 6 other

Total votes 60

Feb 26, 2026

D Democratic27

12 Yea 11 Nay 4

44% Yea

R Republican33

21 Yea 10 Nay 2

63% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 26, 2026

Lower · Passed

PASSED

lower

Feb 18, 2026

Lower · Passed

lower

1 primary · 0 co-sponsors