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TDOT says project funding, not highway location, will determine payment method for GC task orders

Tennessee Department of Transportation (TDOT) pre-proposal meeting on General Engineering Services (RFP) · July 23, 2026
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Summary

TDOT staff told proposers that payment method (cost plus, lump sum, per-unit rates) will depend on how each project is funded (federal, state, or combination), and that interstate work is not automatically federally funded.

At the pre-proposal meeting TDOT staff emphasized that payment structures for task orders under the new general consultant contracts will depend on each project's funding source. The agency official said TDOT may use cost-plus fixed-fee, lump-sum or per-unit payment models depending on whether a project is federally funded, state-funded or a combination.

"Payments are gonna be based on the fed, your state, or a combination is really based on how the product is funded," the Agency official said, noting that work on interstates is not automatically federally funded. He urged proposers to read the RFP carefully to understand how funding source may affect allowable billing and rate structures.

The official also told attendees that the department's use of embedded consultants and existing on-call agreements can affect how individual tasks are assigned and funded.