LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session Revision 1 April 7, 2001 TO: Honorable Bill G. Carter, Chair, House Committee on Urban Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: SB510 by Armbrister (Relating to the procurement methods a political subdivision or a related entity may use.), Committee Report 2nd House, Substituted ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** Local Government Impact Under the provisions of the bill, a political subdivision or related entity would be authorized to use a design-build contract as an option for having a building or structure, as defined in the bill, constructed if the political subdivision were to determine that design-build procedures would offer the best value. Based on a sampling of political subdivisions, it is anticipated that providing political subdivisions with the option to utilize design-build procedures would result in a savings on project costs. The City of Kilgore, for example, estimated being able to save between 15 percent to 18 percent on project costs. Savings would vary by political subdivision depending on the number of projects for which design-build would be used and the size of the project. Source Agencies: LBB Staff: JK, DB