Tennessee HB 340: Public Contracts - As introduced, entitles a construction design professional to compensation for additional services provided to certain state agencies that are not included in a basic services agreement; provides for the adjudication of disputes between construction design professionals and state agencies by an administrative law judge. - Amends TCA Title 5; Title 6; Title 7; Title 12, Chapter 4 and Title 62.

Bill Text

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SENATE BILL 40  
By Southerland 
 
HOUSE BILL 340  
By  Hulsey 
 
 
AN ACT to amend Tennessee Code Annotated, Title 5; 
Title 6; Title 7; Title 12, Chapter 4 and Title 62, 
relative to public works. 
 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE: 
 SECTION 1.  Tennessee Code Annotated, Title 12, Chapter 4, is amended by adding 
the following as a new part: 
12-4-1101. 
As used in this part: 
 (1)  "Basic services agreement" means the standardized contract 
between a state agency and a designer for the design of a construction project; 
(2)  "Designer" means a construction design professional under contract 
with, or selected by, a state agency for the design of a construction project; and 
 (3)  "State agency" means the University of Tennessee, the board of 
regents, or the state of Tennessee real estate and asset management division of 
the department of general services.  
12-4-1102. 
(a)  A designer is entitled to additional compensation from a state agency for any 
industry standard and customary additional services provided to the state agency that 
are not included in, or reasonably inferred from, the terms of a basic services 
agreement. 
(b)  Except as otherwise provided in this subsection (b), as part of a solicitation, 
industry standard and customary additional services must not be included in the basic 
services provided by a designer under the terms of a basic services agreement prior to  

 
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the agreement being fully executed and signed.  After the selection of a designer for the 
design of a construction project, and prior to the execution of a basic services 
agreement, a state agency and designer may negotiate in good faith for the inclusion of 
additional services in the basic services agreement that are not included in, or 
reasonably inferred from, the terms of the basic services agreement.  If additional 
services are incorporated into a basic services agreement, the basic services agreement 
must specify the amount of compensation owed to the designer for the provision of 
additional services.  
(c)  If a state agency and designer have entered into a basic services agreement, 
and the state agency requires additional services of the designer that are not included in, 
or reasonably inferred from, the terms of the basic services agreement, the state agency 
may provide for the additional services at its own cost, contract with a third party to 
provide the additional services, or execute a written addendum to the basic services 
agreement with the designer authorizing the provision of the additional services by the 
designer.  If a state agency executes a written addendum to a basic services agreement 
authorizing the provision of additional services by a designer under this subsection (c), 
the addendum must specify the amount of compensation owed to the designer for the 
provision of additional services. 
 12-4-1103. 
 (a)  With respect to a basic services agreement: 
(1)  Building information modeling (BIM) deliverables categorized at a 
level of development (LOD) that is equal to or less than LOD 300, as specified by 
the American Institute of Architects (AIA), may be included in the basic services 
fee of a designer under a basic services agreement;  
 (2)  Except as otherwise provided in this subdivision (a)(2), BIM 
deliverables categorized at an LOD that exceeds LOD 300, as specified by the 
AIA, must not be included in the basic services fee of a designer under the basic 
services agreement.  If a state agency requires BIM deliverables categorized at 

 
 
 
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an LOD that exceeds LOD 300, the provision of such BIM deliverables by the 
designer is an additional service and the designer is entitled to additional 
compensation under § 12-4-1102(a); 
 (3)  If a state agency requires additional embedded data in a model 
utilizing the Construction Operations Building Information Exchange or a similar 
format, regardless of whether the format is data-based or geometrically-based, 
the provision of such data by the designer is an additional service and the 
designer is entitled to additional compensation under § 12-4-1102(a);  
 (4)  If a state agency requires a software license, the provision of each 
such license is a reimbursable expense of the designer; 
  (5)  A designer is entitled to additional compensation from a state agency 
under § 12-4-1102(a) for any additional model development and enhancement 
during the construction phase; 
(6)  A designer is not entitled to additional compensation under § 12-4-
1102(a) for typical as-built or post-construction documentation requirements; and
 (7)  A designer is entitled to additional compensation from a state agency 
under § 12-4-1102(a) for specific management or coordination requirements for a 
construction project, and such requirements may be negotiated on a project by 
project basis in accordance with §12-4-1102(b) or (c). 
(b)  If a designer provides B