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Amendment to Section 255.103, Florida Statutes, and the Impact on Public Procurement. (Effective July 1, 2024)

Florida Statute 255.103 outlines the guidelines for governmental entities in Florida regarding the selection and use of construction management or program management entities for public construction projects. The statute defines a “governmental entity” as any county, municipality, school district, special district, or political subdivision of the state. Accordingly, the construction management or program management entity selected is responsible for overseeing, scheduling, coordination, and overall successful completion of the public construction project.

Effective July 1, 2024, a governmental entity’s authority under Statute 255.103 includes entering into a continuing contract for construction projects, in which the estimated construction cost of each individual project under the contract does not exceed $7.5 million. This is an increase from the prior amount of $4 million. Beginning July 1, 2025, the maximum amount will be adjusted annually for each individual project in a continuing contract for inflation.

Accordingly, updated Florida Statute 255.103 has the potential to have a significant impact on public procurement by increasing the threshold on continuing services agreements to $7.5 million and providing for an annual adjustment for inflation.

June 6, 2024

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