Gov. Ron DeSantis signed legislation raising the maximum limit for continuing contracts from $4 million to $7.5 million per project, with adjustments for inflation, to address rising construction and professional service costs.

Gov. Ron DeSantis authorized legislation on Wednesday that raises the maximum limit for continuing contracts, with an annual adjustment based on the Consumer Price Index (CPI) to account for inflation.

The measure, which saw unanimous passage in the House and Senate, raises the maximum limit for continuing contracts from $4 million to $7.5 million per project through a statutory revision of the Consultants’ Competitive Negotiation Act (CCNA). Enacted in 1973, the CCNA mandates that state and local government agencies procure the professional services of architects, engineers, landscape architects, and surveyors using a qualifications-based selection process.

Enacted through a provision within the CCNA, continuing contracts allow firms to provide professional services to government agencies across multiple projects without the need to bid against each other repeatedly.

The increase in the contract limits addresses the escalating costs of construction and professional services, according to a legislative analysis, which have surged in recent years due to inflation, supply chain disruptions, and labor shortages exacerbated by the COVID-19 pandemic.

“Construction costs have seen an upswing since 2020, largely driven by a confluence of factors exacerbated by the COVID-19 pandemic,” the legislative analysis states. “Escalating prices of essential materials, such as steel and lumber, influenced by disruptions in global supply chains, are prominent contributors as well as general inflation in the economy. In addition, labor shortages have led to higher wages, further impacting costs.”

Proponents of the bill contend that the changes will streamline project management, reduce administrative burdens, and ultimately facilitate the timely completion of public works and infrastructure projects.

Lobbying efforts on behalf of the bill saw support from organizations including the Florida Associated General Contractors Council, Palm Beach County, and the Associated Builders & Contractors of Florida, Inc, among others.