AZ SB1099

Adds "progressive design-build" as a new project delivery method for the Arizona Department of Transportation, defined as a process where a contractor is selected through qualifications-based selection and agrees to both design and build a project.

Requires progressive design-build projects to be specific single projects and prohibits the department from commencing any such projects after December 31, 2025.

Applies the same procurement procedures as construction-manager-at-risk and job-order-contracting methods, including qualifications-based selection, evaluation by a selection team, and negotiation of fees based on demonstrated competence rather than initial price.

Requires the contractor to perform at least 40 percent of construction work with its own organization and prohibits the department from entering into progressive design-build contracts as a contractor itself.

Maintains the department's responsibility for right-of-way acquisition, environmental documentation, and railroad approvals while extending existing bonding, change order, and payment requirements to progressive design-build contracts.