New York Fails to Reauthorize the Use of “Design-Build” as Part of 2014-15 Budget

    April 2014

    On March 31, 2014, the New York State Senate passed the state’s 2014-15 Budget. The initial 2014 Budget proposal submitted by Governor Cuomo had included a reauthorization of the State’s successful “design-build” procurement process for a further three years. There had also been a proposal to include more wide ranging authorization for public private partnerships (P3s) in the Budget legislation.

    The final Budget, however, failed to reauthorize “design-build” procurement or to authorize the use of P3s.

    Since the use of “design-build” procurement was authorized, the relevant New York State agencies have used “design-build” to realize significant cost savings and to accelerate the timetables of several important construction projects.

    While many were disappointed by the State Senate’s failure to reauthorize “design-build” as part of the 2014-15 Budget, the relevant bill may still be enacted before the current legislative session ends on June 30, 2014. If it is not, New York will become one of only five states that do not allow the use of “design-build” procurement to deliver certain public infrastructure projects.