Committee approves DFCM construction reforms, programming‑before‑funding requirement
Feb 18, 2026
Lawmakers unanimously passed second substitute HB 508 out of committee, advancing measures intended to reduce construction cost growth: programming requirements before funding, higher agency self‑build thresholds, clearer contingency-account rules, and owner incentives for savings.
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Representative Brooks presented a broad package of changes to state facilities and construction management in second substitute HB 508, describing a months‑long effort with the Division of Facilities and Construction Management (DFCM) and the governor’s office. He said the bill requires agencies to complete programming (defining square footage and major building components) before asking for construction funds, raises the threshold for agency self‑build projects from $100,000 to $1,500,000 (with a lower $1,000,000 threshold for community and technical colleges), clarifies contingency and cost‑escalation buckets, and creates incentives that allow owners to retain up to 50% of verified savings at the director’s discretion.
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