California SB 935: What the Local Agency Design-Build Authorization Means for Contractors
California SB 935 extends local agencies’ ability to use design-build contracts, opening new doors for contractors and construction firms.
Check your obligations →California SB 935 authorizes local agencies to continue using design-build contracts for public works projects, creating new opportunities for contractors and construction firms.
This law, signed in July 2026, removes the previous expiration date for local agency design-build authority, allowing indefinite use of this project delivery method.
Contractors interested in public works projects should understand how SB 935 changes the landscape, what design-build means, and how to position themselves for success under the new law.
What Is California SB 935 and What Does It Change?
California SB 935 is a state law that authorizes local agencies to use design-build contracts for public works projects without a set expiration date.
Previously, California law allowed local agencies to use design-build project delivery, but this authority was scheduled to expire in 2031. SB 935 removes that sunset, making the authorization indefinite and providing long-term certainty for both agencies and contractors.
This change means local governments can continue to use a single contract for both design and construction, streamlining the process and potentially reducing project timelines and costs. For contractors, it signals ongoing opportunities to bid on and win public works projects using the design-build model.
The law’s indefinite extension may encourage more agencies to adopt design-build, knowing they won’t have to revert to traditional design-bid-build in the near future.
- SB 935 removes the expiration date for local agency design-build authority.
- Local agencies can use design-build for public works projects indefinitely.
- Contractors may see more design-build opportunities in the public sector.
SB 935 ensures design-build remains a viable option for local agencies and contractors in California.
Sources: Official source
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Consult a Compliance Lawyer →How Does Design-Build Work for Local Agency Projects?
Design-build is a project delivery method where a single contract covers both the design and construction of a project, allowing for greater collaboration and efficiency.
In traditional public works procurement, agencies use a design-bid-build approach: one contract for design, then a separate bid and contract for construction. Design-build combines these steps, so the contractor and designer work as a team from the start, often leading to faster project completion and fewer disputes.
For local agencies, design-build can mean fewer change orders, more innovation, and better cost control. For contractors, it offers the chance to work closely with designers, influence project outcomes earlier, and potentially win more work with a single proposal.
A real-world example: A city library project using design-build could move from concept to completion months faster than a traditional approach, with the contractor and architect collaborating to solve site challenges before construction begins.
- Single contract covers both design and construction.
- Encourages collaboration between contractor and designer.
- Can reduce project duration and administrative overhead.
Design-build streamlines public works projects and can give contractors a competitive edge.
Sources: Official source
Do You Need to Comply with California SB 935 for Local Agency Design-Build Projects?
Are you a contractor or construction firm seeking to bid on California local agency public works projects?
Do your projects involve both design and construction phases (design-build delivery)?
Are you prepared to meet the qualification requirements set by California local agencies under SB 935?
Opportunities for Contractors Under SB 935
SB 935’s indefinite extension of design-build authority means contractors can expect a steady pipeline of public works projects using this method.
Contractors with experience in design-build are well-positioned to pursue new opportunities, as local agencies may increase their use of this approach now that it is a permanent option. Firms that have not yet developed design-build capabilities may want to consider partnerships or joint ventures to become more competitive.
This law may also encourage agencies to take on more complex or innovative projects, knowing they have the flexibility of design-build. Contractors who can show a strong track record in collaborative delivery, risk management, and creative problem-solving will stand out.
A non-obvious advantage: Contractors who invest in building relationships with local agency staff and design partners now may be better placed to influence project scoping and win work as agencies expand their design-build programs.
- More public works projects may use design-build.
- Contractors can differentiate with design-build expertise.
- Partnerships with designers may increase competitiveness.
Contractors should prepare now to take advantage of expanded design-build opportunities.
Sources: Official source
Key Steps for Contractors to Qualify for Local Agency Design-Build Projects
To qualify for local agency design-build projects under SB 935, contractors must meet specific requirements set by each agency and demonstrate relevant experience.
Agencies typically require contractors to submit a statement of qualifications, including past design-build experience, financial stability, and key personnel resumes. Some agencies may also require prequalification or proof of bonding capacity.
Contractors should monitor agency procurement websites and sign up for notifications about upcoming design-build projects. Building relationships with architects, engineers, and local officials can also help contractors learn about opportunities early.
A practical tip: Attend pre-bid meetings and ask questions about agency expectations for collaboration, risk-sharing, and innovation—these factors often influence selection in design-build procurements.
- Submit a statement of qualifications with relevant experience.
- Meet agency-specific prequalification and bonding requirements.
- Network with designers and local officials for early project insights.
Early preparation and relationship-building are key to winning design-build contracts.
Sources: Official source
Design-Build vs. Design-Bid-Build: Which Is Better for Public Works?
Design-build and design-bid-build are two common project delivery methods, each with unique benefits and tradeoffs for public works projects.
Design-build offers a single point of responsibility, faster project delivery, and more collaboration, but may limit owner control over design details. Design-bid-build separates design and construction, which can allow for more agency oversight but often leads to longer schedules and more change orders.
For local agencies, design-build is often preferred for complex or time-sensitive projects, while design-bid-build may still be used for straightforward or highly regulated projects. Contractors should understand both methods to tailor their approach to each opportunity.
A non-obvious consideration: Agencies may use design-build for projects with significant unknowns or where innovation is needed, while design-bid-build remains common for routine infrastructure upgrades.
- Design-build: faster, more collaborative, single contract.
- Design-bid-build: more agency control, separate contracts.
- Project complexity and timeline often drive the choice.
Understanding both delivery methods helps contractors compete for a wider range of projects.
Sources: Official source
How to Stay Updated on California Public Works and Design-Build Opportunities
Contractors can stay informed about new public works and design-build opportunities in California by monitoring official agency websites, subscribing to bid notification services, and joining industry associations.
Many local agencies post upcoming projects, RFQs, and RFPs on their procurement portals. Statewide resources like the California Department of General Services and local builder exchanges also provide project listings and updates.
Participating in industry groups such as the Design-Build Institute of America (DBIA) can offer networking, training, and early insights into legislative changes like SB 935.
A practical example: Some agencies host annual contractor outreach events where firms can meet agency staff, learn about upcoming projects, and ask questions about procurement processes.
- Monitor local agency procurement websites regularly.
- Subscribe to bid notification and industry association newsletters.
- Attend outreach events and industry conferences.
Staying proactive increases your chances of securing public works contracts.
Sources: Official source
Frequently asked questions
What does California SB 935 do for design-build contracts?
California SB 935 authorizes local agencies to use design-build contracts for public works projects indefinitely, removing the previous expiration date and providing long-term certainty for agencies and contractors.
Who can benefit from the new design-build authorization in California?
Contractors, construction firms, architects, and engineers working with local agencies can benefit from the expanded use of design-build contracts under SB 935, as it creates more opportunities for collaboration and project awards.
How can contractors qualify for local agency design-build projects?
Contractors must meet agency-specific requirements, such as submitting a statement of qualifications, demonstrating relevant experience, and meeting bonding or prequalification standards; requirements vary by agency.
What are the advantages of design-build over traditional project delivery?
Design-build offers faster project delivery, a single point of responsibility, and more collaboration between designers and builders, which can reduce change orders and disputes compared to design-bid-build.
Will all local agencies in California use design-build now?
Not necessarily; while SB 935 allows all local agencies to use design-build indefinitely, each agency decides when and how to use this method based on project needs and internal policies.
Where can I find upcoming design-build public works projects in California?
You can find upcoming projects on local agency procurement websites, statewide bid portals, and through industry associations that track public works opportunities.
Is legal advice needed to bid on design-build projects?
This article provides general information, not legal advice; contractors should review the official text of SB 935 and consult a qualified attorney or construction law expert before bidding.
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