Public Contract Code — Part 1 | PCC — United States — California law | Esheria

Public Contract Code

Part 1 of 9 · provisions 1–200

This section says the public contract code is intended to make public contract law clearer, easier to find, and better aligned with competitive bidding rules.

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This section says the public contract code is intended to make public contract law clearer, easier to find, and better aligned with competitive bidding rules. This chapter may be cited as the State Contract Act. Some contracts are exempt from this chapter: contracts to buy supplies or materials under Chapter 2, and contracts needing emergency work or remedial measures to deal with toxic substance releases and protect the public. Certain improvements on state waterfront property in San Francisco, under the San Francisco Port Commission, are excluded from this chapter. Work performed by prisoners under an order from the Secretary of the Department of Corrections and Rehabilitation or the California Correctional Training and Rehabilitation Authority is not subject to this chapter. For prison construction projects or additions, the total cost may not exceed $50,000 unless first approved by the State Public Works Board.

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Provisions of Public Contract Code

Showing 200 of 1,624

  1. 100.

    ## Public Contract Code - PCC ## DIVISION 1. PURPOSE AND PRELIMINARY MATTERS [100 - 102] ( Division 1 added by Stats. 1984, Ch. 42, Sec. 1. )

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    This section says the public contract code is intended to make public contract law clearer, easier to find, and better aligned with competitive bidding rules.

    ## Public Contract Code - PCC ## DIVISION 1. PURPOSE AND PRELIMINARY MATTERS [100 - 102] ( Division 1 added by Stats. 1984, Ch. 42, Sec. 1. ) ## 100. The Legislature finds and declares that placing all public contract law in one code will make that law clearer and easier to find. Further, it is the intent of the Legislature in enacting this code to achieve the following objectives: (a) To clarify the law with respect to competitive bidding requirements. (b) To ensure full compliance with competitive bidding statutes as a means of protecting the public from misuse of public funds. (c) To provide all qualified bidders with a fair opportunity to enter the bidding process, thereby stimulating competition in a manner conducive to sound fiscal practices. (d) To eliminate favoritism, fraud, and corruption in the awarding of public contracts. (Amended by Stats. 1990, Ch. 485, Sec. 2.)
  2. 101.

    ## Public Contract Code - PCC ## DIVISION 1. PURPOSE AND PRELIMINARY MATTERS [100 - 102] ( Division 1 added by Stats. 1984, Ch. 42, Sec. 1. )

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    California public contract law should be efficient and reflect the best modern practice and research.

    ## Public Contract Code - PCC ## DIVISION 1. PURPOSE AND PRELIMINARY MATTERS [100 - 102] ( Division 1 added by Stats. 1984, Ch. 42, Sec. 1. ) ## 101. California public contract law should be efficient and the product of the best of modern practice and research. (Added by Stats. 1984, Ch. 42, Sec. 1.)
  3. 10100.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

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    This chapter may be cited as the State Contract Act.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10100. This chapter may be cited as the State Contract Act. (Amended by Stats. 2010, Ch. 328, Sec. 184. (SB 1330) Effective January 1, 2011.)
  4. 10101.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

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    Some contracts are exempt from this chapter: contracts to buy supplies or materials under Chapter 2, and contracts needing emergency work or remedial measures to deal with toxic substance releases and protect the public.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10101. (a) Contracts for the purchase of supplies or materials, which are purchased pursuant to Chapter 2 (commencing with Section 10290), are not subject to this chapter, even though the seller is required to perform some incidental work or service in connection with the delivery of the material or supplies. (b) Contracts for which emergency work or remedial measures are required are not subject to this chapter if the work or remedial measures are necessary to immediately avert, alleviate, repair, or mitigate destruction of property caused by the accidental or unplanned release of toxic substances and are necessary to protect the health, safety, and welfare of the general public. (Amended by Stats. 2010, Ch. 328, Sec. 185. (SB 1330) Effective January 1, 2011.)
  5. 10102.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

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    Certain improvements on state waterfront property in San Francisco, under the San Francisco Port Commission, are excluded from this chapter.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10102. Improvements on the property of the state on the waterfront of the City and County of San Francisco under the jurisdiction of the San Francisco Port Commission are not subject to this chapter. (Amended by Stats. 2010, Ch. 328, Sec. 186. (SB 1330) Effective January 1, 2011.)
  6. 10103.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

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    Work done directly by a public utility company under an order of the Public Utilities Commission or another public authority is not subject to this chapter.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10103. Work done directly by any public utility company pursuant to order of the Public Utilities Commission or other public authority is not subject to this chapter, whether or not done under public supervision or paid for in whole or part out of public funds. (Amended by Stats. 2010, Ch. 328, Sec. 187. (SB 1330) Effective January 1, 2011.)
  7. 10103.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

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    Work performed by prisoners under an order from the Secretary of the Department of Corrections and Rehabilitation or the California Correctional Training and Rehabilitation Authority is not subject to this chapter. For prison construction projects or additions, the total cost may not exceed $50,000 unless first approved by the State Public Works Board.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10103.5. Work performed by prisoners pursuant to an order by the Secretary of the Department of Corrections and Rehabilitation or by the California Correctional Training and Rehabilitation Authority is not subject to this chapter, provided that the total cost of a project for the construction of new, previously unoccupied prison facilities or additions to an existing facility shall not exceed fifty thousand dollars ($50,000) unless it is first approved by the State Public Works Board. (Amended by Stats. 2025, Ch. 241, Sec. 64. (SB 857) Effective January 1, 2026.)
  8. 10104.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

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    This section defines “mobilization” to include preparatory work and operations for a project, including moving personnel, equipment, supplies, and incidentals to the site and setting up offices, buildings, and other necessary facilities.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10104. As used in this chapter, “mobilization” includes preparatory work and operations, including, but not limited to, those necessary for the movement of personnel, equipment, supplies and incidentals to the project site, for the establishment of all offices, buildings and other facilities necessary for work on the project, and for all other work and operations which must be performed or costs incurred prior to beginning work on the various items on the project site. (Amended by Stats. 2010, Ch. 328, Sec. 189. (SB 1330) Effective January 1, 2011.)
  9. 10105.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

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    This section defines “project” for this chapter and sets a cost threshold that determines when work counts as a project. It also requires the total cost limit to be adjusted every two years by the Director of Finance based on the California Construction Index.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10105. (a) As used in this chapter, “project” includes the erection, construction, alteration, repair, or improvement of any state structure, building, road, or other state improvement of any kind that will exceed a total cost calculated pursuant to subdivision (b). (b) The total cost limit for calendar year 2010 shall be two hundred fifty thousand dollars ($250,000), and at two year intervals thereafter, the total cost limit shall be adjusted upward or downward by the Director of Finance to reflect the percentage change in the annual California Construction Index as used by the Department of General Services. The amount shall be rounded off to the nearest one-thousand-dollar ($1,000) figure. (Amended by Stats. 2010, Ch. 328, Sec. 190. (SB 1330) Effective January 1, 2011.)
  10. 10106.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

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    This section defines “Department” and “Director” for this chapter.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10106. For purposes of this chapter: (a) “Department” means any of the following: (1) The Department of Water Resources as to any project under the jurisdiction of that department. (2) The Department of Transportation as to any project under the jurisdiction of that department. (3) The Department of Parks and Recreation as to any project under the jurisdiction of that department. (4) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code. (5) The Military Department as to any project under the jurisdiction of that department. (6) The High-Speed Rail Authority as to any project under the jurisdiction of that authority. (7) The Department of General Services as to all other projects. (b) “Director” means the director of each department as defined in this section respectively or the executive director, also known as the chief executive officer, in the case of the High-Speed Rail Authority. (Amended by Stats. 2018, Ch. 790, Sec. 8. (SB 1172) Effective January 1, 2019.)
  11. 10107.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

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    For covered projects outside the listed departments’ jurisdiction, the Department of General Services has sole charge and direct control.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10107. Whenever provision is made by law for any project that is not under the jurisdiction of the Department of Water Resources, the Department of Parks and Recreation, the Department of Corrections and Rehabilitation pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code, the Department of Transportation, the High-Speed Rail Authority, or the Military Department, the project shall be under the sole charge and direct control of the Department of General Services. (Amended by Stats. 2018, Ch. 790, Sec. 9. (SB 1172) Effective January 1, 2019.)
  12. 10108.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

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    This section lets the department authorize a state agency to do a project directly when the work does not need the department’s services and the estimated cost is at most $600,000, subject to stated exceptions. It also requires written bidding above $25,000, allows day labor in limited cases, and caps day-labor work at $50,000 for district agricultural association fair projects or $35,000 otherwise.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10108. Where the nature of the work in the opinion of the department is such that its services in connection therewith are not required, it may authorize the carrying out of the project directly by the state agency concerned therewith if the estimated cost does not exceed six hundred thousand dollars ($600,000), except that the six hundred thousand dollar ($600,000) limitation shall not apply to a project of a district agricultural association or a project of the State Lands Commission. Any capital outlay project with a total value that does not exceed six hundred thousand dollars ($600,000) may be budgeted as a minor capital outlay project. This limit shall be adjusted pursuant to subdivision (b) of Section 10105. If the estimated total cost of any construction project or work carried out under this section exceeds twenty-five thousand dollars ($25,000), the district or agency shall solicit bids in writing and shall award the work to the lowest responsible bidder or reject all bids. However, the director may authorize the district or agency to carry out work in excess of twenty-five thousand dollars ($25,000) under the provisions of this section by day labor if he or she deems that the award of a contract, the acceptance of bids, or the acceptance of further bids is not in the best interests of the state. In no event shall the amount of work performed by day labor under this section exceed the sum of fifty thousand dollars ($50,000) in the case of district agricultural association fair projects, or thirty-five thousand dollars ($35,000) in other cases. (Amended by Stats. 2010, Ch. 252, Sec. 3. (AB 2181) Effective January 1, 2011.)
  13. 10108.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

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    This section lets the Department of General Services authorize certain direct project work in the Resources Agency, requires written bidding and award to the lowest responsible bidder for larger jobs, and allows limited day-labor work in some cases.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10108.5. (a) When the nature of the work by departments, boards, commissions, or conservancies within the Resources Agency, in the opinion of the Department of General Services, is such that its services in connection therewith are not required, it may authorize the carrying out of the project directly by the department within the Resources Agency concerned therewith if the estimated cost does not exceed five hundred thousand dollars ($500,000). This limit shall be adjusted pursuant to subdivision (b) of Section 10105. (b) If the estimated total cost of any construction project or work carried out under this section exceeds fifty thousand dollars ($50,000), the Department of Forestry and Fire Protection shall solicit bids in writing and shall award the work to the lowest responsible bidder or reject all bids. However, the Director of General Services may authorize the Department of Forestry and Fire Protection to carry out work in excess of fifty thousand dollars ($50,000) under this section by day labor if he or she deems that the award of a contract, the acceptance of bids, or the acceptance of further bids is not in the best interests of the state. However, in no event shall the amount of work performed by day labor under this section exceed the sum of one hundred thousand dollars ($100,000). This limit shall be adjusted pursuant to subdivision (b) of Section 10105. (c) Notwithstanding the cost limitation of subdivision (a), the State Coastal Conservancy may, if authorized by the Department of General Services as described in subdivision (a), directly carry out a public works project involving habitat or wetlands restoration and related pedestrian or cycling access improvements, not including buildings or other nonaccess related structures on the following state-owned lands: Bel Marin Keys Unit V in Marin County, Eden Landing Ecological Reserve (a part of the South Bay Salt Pond Restoration Project) in Alameda County, Bair Island Ecological Reserve in San Mateo County, Napa Sonoma Marshes State Wildlife Area in Napa, Solano, and Sonoma Counties, Ballona Wetlands Ecological Reserve in Los Angeles County, Buena Vista Lagoon Ecological Reserve in San Diego County, Los Peñasquitos Marsh in Torrey Pines State Natural Reserve in San Diego County, and Tijuana Estuary State Park in San Diego County. In carrying out a public works project pursuant to this subdivision, the State Coastal Conservancy shall comply with the provisions of, and regulations adopted pursuant to, this chapter. (Amended by Stats. 2008, Ch. 444, Sec. 1. Effective January 1, 2009.)
  14. 10108.6.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

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    The department may authorize a state agency to carry out a project, but for projects over $3,000,000 it must first seek approval from the Department of Finance.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10108.6. Notwithstanding Section 10108 and subdivision (a) of Section 10108.5, the department, upon request from the state agency concerned, may authorize the carrying out of a project or a class of projects of any amount directly by a state agency if the department finds that the state agency concerned is capable of successfully undertaking a project or projects of that amount. For projects or a class of projects where the total project cost exceeds three million dollars ($3,000,000), the department shall seek approval from the Department of Finance prior to authorizing a state agency to carry out the project or class of projects pursuant to this section. (Added by Stats. 2024, Ch. 997, Sec. 18. (AB 179) Effective September 30, 2024.)
  15. 10108.7.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

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    The Department of Corrections must require bidders or offerors to disclose certain subcontractor information in their bids or offers, and prime contractors may list only one subcontractor per portion of work.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10108.7. (a) The Department of Corrections shall provide in the general conditions under which bids will be received, that any person making a bid or offer to perform a contract shall, in his or her bid or offer, set forth the following information: (1) The name and the location of the place of business of each subcontractor certified as a minority, women, or disabled veteran business enterprise who will perform work or labor or render service to the prime contractor in connection with the performance of the contract and who will be used by the prime contractor to fulfill minority, women, and disabled veteran business enterprise participation goals. (2) The portion of work that will be done by each subcontractor under paragraph (1). The prime contractor shall list only one subcontractor for each portion of work as is defined by the prime contractor in his or her bid or offer. (b) The Subletting and Subcontracting Fair Practices Act (Chapter 4 (commencing with Section 4100) of Part 1 shall apply to the information required by subdivision (a) relating to subcontractors certified as minority, women, or disabled veteran business enterprises. (c) For purposes of this section, “subcontractor” and “prime contractor” shall have the same meaning as those terms are defined in Section 4113. (d) As used in this section, “contract” does not include a contract negotiated pursuant to Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code. (Added by Stats. 1993, Ch. 1032, Sec. 5. Effective January 1, 1994.)
  16. 10108.8.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

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    The Department of Corrections must, where feasible, enter into at least two procurement contracts to buy and develop the BIS Project.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10108.8. The Department of Corrections, where feasible, shall enter into two or more procurement contracts for the purchase and development of the Business Information System (BIS) Project. The BIS project shall be developed to allow integration with other relevant statewide financial and personnel systems. (Added by Stats. 2004, Ch. 227, Sec. 91. Effective August 16, 2004.)
  17. 10109.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    Bid notices for certain projects must include any conditions or modifications established under Section 1603.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10109. Any notice inviting bids on a project which specifies locations of possible materials, such as a borrow pit or gravel bed, for use in the proposed project which would be subject to Section 1602 of the Fish and Game Code shall include any conditions or modifications established pursuant to Section 1603. (Amended by Stats. 2005, Ch. 383, Sec. 8. Effective January 1, 2006.)
  18. 10110.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    This section lets the department authorize direct work on historic restoration projects for state parks, but projects over $50,000 generally require written bids and award to the lowest responsible bidder unless the director approves day labor because bidding is not in the state’s best interests.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10110. (a) Where the nature of the work is historic restoration for the state park system, as determined jointly by the director and the Director of Parks and Recreation, the department may authorize the carrying out of the project directly by the Department of Parks and Recreation. (b) If the estimated total cost of any construction project or work carried out under this section exceeds fifty thousand dollars ($50,000), the Department of Parks and Recreation shall solicit bids in writing and award the work to the lowest responsible bidder or reject all bids. However, the director may authorize the Department of Parks and Recreation to carry out work in excess of fifty thousand dollars ($50,000) under the provisions of this section by day labor if the director determines, in consultation with the Director of Parks and Recreation, that the award of a contract, the acceptance of bids, or the acceptance of further bids is not in the best interests of the state. The Department of Parks and Recreation shall establish, by regulation, criteria to be considered by the Department of Parks and Recreation in requesting authorization from the director to perform all or part of a project by day labor. (Amended by Stats. 2015, Ch. 573, Sec. 2. (SB 204) Effective January 1, 2016.)
  19. 10111.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    The department must make available a contracting-activity report starting January 1, 2007.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10111. Commencing January 1, 2007, the department shall make available a report on contracting activity containing the following information: (a) A listing of consulting services contracts that the state has entered into during the previous fiscal year. The listing shall include the following: (1) The name and identification number of each contractor. (2) The type of bidding entered into, the number of bidders, whether the low bidder was accepted, and if the low bidder was not accepted, an explanation of why another contractor was selected. (3) The amount of the contract price. (4) Whether the contract was a noncompetitive bid contract, and why the contract was a noncompetitive bid contract. (5) Justification for entering into each consulting services contract. (6) The purpose of the contract and the potential beneficiaries. (7) The date when the initial contract was signed, and the date when the work began and was completed. (b) The report shall also include a separate listing of consultant contracts completed during that fiscal year, with the same information specified in subdivision (a). (c) The information specified in subdivisions (a) and (b) shall also include a list of any contracts underway during that fiscal year on which a change was made regarding the following: (1) The completion date of the contract. (2) The amount of money to be received by the contractor, if it exceeds 3 percent of the original contract price. (3) The purpose of the contract or duties of the contractor. A brief explanation shall be given if the change in purpose is significant. (d) The level of participation, by agency, of disabled veteran business enterprises in statewide contracting and shall include dollar values of contract award for the following categories: (1) Construction. (2) Architectural, engineering, and other professional services. (3) Procurement of materials, supplies, and equipment. (4) Information technology procurements. Additionally, the report shall include a statistical summary detailing each awarding department’s goal achievement and a statewide total of those goals. (e) The level of participation by small business in state contracting including: (1) Upon request, an up-to-date list of eligible small business bidders by general procurement and construction contract categories, noting company names and addresses and also noting which small businesses also qualify as microbusinesses. (2) By general procurement and construction contract categories, statistics comparing the small business and microbusiness contract participation dollars to the total state contract participation dollars. (3) By awarding department and general procurement and construction categories, statistics comparing the small business and microbusiness contract participation dollars to the total state contract participation dollars. (4) Any recommendations for changes in statutes or state policies to improve opportunities for small businesses and microbusinesses. (5) A statistical summary of small businesses and microbusinesses certified for state contracting by the number of employees at the business for each of the following categories: 0–5, 26–50, 51–75, and 76–100. (6) To the extent feasible, beginning in the year 2008, the number of contracts awarded by the department in the categories specified in paragraph (5). (7) The number of contracts and dollar amounts awarded annually pursuant to Section 14838.5 of the Government Code to small businesses, microbusinesses, and disabled veteran business enterprises. (f) The level of participation of business enterprises, by race, ethnicity, and gender of the owner, in contracts to the extent that the information has been voluntarily reported to the department. In addition, the report shall contain the levels of participation of business enterprises, by race, ethnicity, and gender of the owner, and whether the business is a lesbian, gay, bisexual, or transgender owned business for the following categories of contracts, to the extent that the information has been voluntarily reported to the department: (1) Construction. (2) Purchases of materials, supplies, or equipment. (3) Professional services. (g) In the years 2011 and 2012, any errors reported to the department by an awarding agency as required by Sections 10302, 10344, and 12104.5, in the previous fiscal year. (h) The amendments made to this section by the act adding this subdivision shall apply on and after January 1, 2013. (Amended by Stats. 2012, Ch. 861, Sec. 1. (AB 1960) Effective January 1, 2013.)
  20. 10111.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    A department must, on request from a contractor plan room service, provide an electronic copy of a project’s contract documents free of charge.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1. Scope of Chapter and General Provisions [10100 - 10111.2] ( Article 1 enacted by Stats. 1981, Ch. 306. ) ## 10111.2. A department shall, upon request from a contractor plan room service, provide an electronic copy of a project’s contract documents at no charge to the contractor plan room. (Added by Stats. 2010, Ch. 371, Sec. 1. (AB 2036) Effective January 1, 2011.)
  21. 10112.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. )

    Verify source ↗

    This section lets the Department of Water Resources use a Construction Manager/General Contractor procurement method for certain projects.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. ) ## 10112. (a) This article provides for an alternative procurement procedure for certain projects performed by the Department of Water Resources. (b) (1) It is the intent of the Legislature in enacting this article to authorize the Department of Water Resources to utilize the Construction Manager/General Contractor method as a cost-effective option for constructing water resources projects. (2) The Construction Manager/General Contractor method allows the department to engage a construction manager during the design process to provide input on the design. During the design phase, the construction manager provides advice including, but not limited to, scheduling, pricing, and phasing to assist the department to design a more constructible project. (c) The Legislature finds and declares that utilizing a Construction Manager/General Contractor method requires a clear understanding of the roles and responsibilities of each participant in the process. The Legislature also finds and declares that cost-effective benefits are achieved by shifting the liability and risk for cost containment and project schedule to the construction manager and by permitting the coherent phasing of projects into discrete contract increments. (Added by Stats. 2021, Ch. 247, Sec. 1. (SB 626) Effective January 1, 2022. Repealed as of January 1, 2033, pursuant to Section 10112.10.)
  22. 10112.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. )

    Verify source ↗

    This section defines key terms used in the article, including “construction manager,” “Construction Manager/General Contractor method,” “Department,” “preconstruction services,” and “project.”

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. ) ## 10112.1. As used in this article: (a) “Construction manager” means a partnership, corporation, or other legal entity that is a licensed contractor pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code and that is able to provide appropriately licensed contracting and engineering services as needed pursuant to a Construction Manager/General Contractor method contract. (b) “Construction Manager/General Contractor method” means a project delivery method in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project. The contract for construction services may be entered into at the same time as the contract for preconstruction services, or at a later time. The execution of the design and the construction of the project may be in sequential phases or concurrent phases. (c) “Department” means the Department of Water Resources. (d) “Preconstruction services” means advice during the design phase including, but not limited to, scheduling, pricing, and phasing to assist the department to design a more constructible project. (e) “Project” means public works necessary for the construction, maintenance, or operation of elements of State Water Facilities, as defined in Section 12934 of the Water Code. (Added by Stats. 2021, Ch. 247, Sec. 1. (SB 626) Effective January 1, 2022. Repealed as of January 1, 2033, pursuant to Section 10112.10.)
  23. 10112.10.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. )

    Verify source ↗

    This section limits the authority to perform water resources projects under the article to no more than seven projects, and the article ends on January 1, 2033.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. ) ## 10112.10. (a) The authority to perform water resources projects pursuant to this article is for no more than seven projects. (b) This article shall remain in effect until January 1, 2033, and as of that date is repealed. (Added by Stats. 2021, Ch. 247, Sec. 1. (SB 626) Effective January 1, 2022. Repealed as of January 1, 2033, by its own provisions. Note: Repeal affects Article 1.1, commencing with Section 10112.)
  24. 10112.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. )

    Verify source ↗

    The department may use this procurement method in certain projects, must handle the contract itself, and must not use it for through-Delta conveyance facilities.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. ) ## 10112.2. (a) The Construction Manager/General Contractor method provided by this article may be used by the department, but is not limited to, when it is anticipated that the method will reduce project costs or expedite project completion in a manner that is not achievable through the design-bid-build method. Notwithstanding any other law, for projects utilizing the Construction Manager/General Contractor method provided by this article, the department shall advertise, award, and administer the Construction Manager/General Contractor contract. (b) On all projects delivered by the department utilizing the Construction Manager/General Contractor method provided by this article, the department shall use department employees or consultants under contract with the department to perform all project design and engineering services related to design required for Construction Manager/General Contractor project delivery consistent with Article XXII of the California Constitution. On all projects delivered by the department, the department shall use department employees or consultants under contract with the department to perform all construction inspection services required for Construction Manager/General Contractor project delivery consistent with Article XXII of the California Constitution. (c) The Construction Manager/General Contractor method referenced in this article shall not include the authority to perform construction inspection services for water resources projects authorized by this article, except as provided by Section 148 of the Water Code. (d) Notwithstanding any other provision of this article, the department shall not utilize this method of procurement for the design or construction of through-Delta conveyance facilities of the Sacramento-San Joaquin Delta. (Added by Stats. 2021, Ch. 247, Sec. 1. (SB 626) Effective January 1, 2022. Repealed as of January 1, 2033, pursuant to Section 10112.10.)
  25. 10112.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. )

    Verify source ↗

    The department must run an RFQ-based process to select a construction manager, negotiate in sequence with the top-qualified firm, and only move to construction after a written price agreement is reached.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. ) ## 10112.3. Construction Manager/General Contractor method projects shall progress as follows: (a) (1) The department shall establish a procedure for the evaluation and selection of a construction manager through a request for qualifications (RFQ). The RFQ shall include, but not be limited to, the following: (A) If the construction manager is a partnership, limited partnership, or other association, a list of all of the partners, general partners, or association members known at the time of the statement of qualifications submission who will participate in the Construction Manager/General Contractor method contract. (B) Evidence that the members of the construction manager have completed, or demonstrated the experience, competency, capability, and capacity to complete projects of similar size, scope, or complexity, and that proposed key personnel have sufficient experience and training to competently manage and complete the construction of the project, as well as a financial statement that assures the department that the construction manager has the capacity to complete the project, construction expertise, and an acceptable safety record. (C) The licenses, registration, and credentials required to construct the project, including information on the revocation or suspension of any license, registration, or credential. (D) Evidence that establishes that the construction manager has the capacity to obtain all required payment and performance bonding, liability insurance, and errors and omissions insurance. (E) Any prior serious or willful violation of the California Occupational Safety and Health Act of 1973 (Part 1 (commencing with Section 6300) of Division 5 of the Labor Code), or the federal Occupational Safety and Health Act of 1970 (Public Law 91-596), settled against any member of the construction manager, and information concerning workers’ compensation experience history and worker safety program. (F) Information concerning any debarment, disqualification, or removal from a federal, state, or local government public works project. Any instance in which a construction manager, its owners, officers, or managing employees submitted a bid on a public works project and were found to be nonresponsive or were found by an awarding body not to be a responsible bidder. (G) Any instance in which the construction manager, or its owners, officers, or managing employees, defaulted on a construction contract. (H) Any violations of the Contractors’ State License Law (Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code), excluding alleged violations of federal or state law including the payment of wages, benefits, apprenticeship requirements, or personal income tax withholding, or of the Federal Insurance Contributions Act (26 U.S.C. Sec. 3101, et seq.) withholding requirements settled against any member of the construction manager. (I) Information concerning the bankruptcy or receivership of any member of the construction manager, including information concerning any work completed by a surety. (J) Information concerning all settled adverse claims, disputes, or lawsuits between the owner of a public works project and any member of the construction manager during the five years preceding submission of a bid pursuant to this section, in which the claim, settlement, or judgment exceeds fifty thousand dollars ($50,000). Information shall also be provided concerning any work completed by a surety during this period. (K) In the case of a partnership or other association that is not a legal entity, a copy of the agreement creating the partnership or association and specifying that all partners or association members agree to be fully liable for the performance under the contract. (L) For the purposes of this paragraph, a construction manager’s safety record shall be deemed acceptable if their experience modification rate for the most recent three-year period is an average of 1.00 or less, and their average total recordable injury/illness rate and average lost work rate for the most recent three-year period does not exceed the applicable statistical standards for its business category. (2) The information required pursuant to this subdivision shall be verified under oath by the construction manager and its members in the manner in which civil pleadings in civil actions are verified. Information that is not a public record pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) shall not be open to public inspection. (b) For each RFQ, the department shall generate a final list of qualified persons or firms that participated in the RFQ prior to entering into negotiations on the contract or contracts to which the RFQ applies. (c) (1) For each contract included in the RFQ, the department shall enter into separate negotiations for the contract with the highest qualified person or firm on the final list for that contract. However, if the RFQ is for multiple contracts and specifies that all of the multiple contracts will be awarded to a single construction manager, there may be a single negotiation for all of the multiple contracts. The negotiations shall include consideration of compensation and other contract terms that the department determines to be fair and reasonable to the department. In making this decision, the department shall take into account the estimated value, the scope, the complexity, and the nature of the professional services or construction services to be rendered. If the department is not able to negotiate a satisfactory contract with the highest qualified person or firm on the final list, regarding compensation and on other contract terms the department determines to be fair and reasonable, the department shall formally terminate negotiations with that person or firm. The department may undertake negotiations with the next most qualified person or firm on the final list in sequence until an agreement is reached, or a determination is made to reject all persons or firms on the final list. (2) If a contract for construction services is entered into pursuant to this article and includes preconstruction services by the construction manager, the department shall enter into a written contract with the construction manager for preconstruction services under which contract the department shall pay the construction manager a fee for preconstruction services in an amount agreed upon by the department and the construction manager. The preconstruction services contract may include fees for services to be performed during the contract period provided, however, the department shall not request or obtain a fixed price or a guaranteed maximum price for the construction contract from the construction manager or enter into a construction contract with the construction manager until after the department has entered into a preconstruction services contract that shall provide for the subsequent negotiation for construction of all or any discreet phase or phases of the project. (3) A contract for construction services shall be awarded after the plans have been sufficiently developed and either a fixed price or a guaranteed maximum price has been successfully negotiated. If a fixed price or a guaranteed maximum price is not negotiated, the department shall not award the contract for construction services. (4) The department is not required to award the construction services contract. (5) Construction shall not commence on any phase, package, or element until the department and construction manager agree in writing on either a fixed price that the department will pay for the construction to be commenced or a guaranteed maximum price for the construction to be commenced and construction schedule for the project. The construction manager shall perform not less than 30 percent of the work covered by the fixed price or guaranteed maximum price agreement reached. Work that is not performed directly by the construction manager shall be bid to subcontractors pursuant to Section 10112.5. (Amended by Stats. 2022, Ch. 28, Sec. 129. (SB 1380) Effective January 1, 2023. Repealed as of January 1, 2033, pursuant to Section 10112.10.)
  26. 10112.4.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. )

    Verify source ↗

    A selected construction manager must have enough bonding and any required risk and liability insurance, and bond forms must use a form developed by the department.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. ) ## 10112.4. (a) Any construction manager that is selected to construct a project pursuant to this article shall possess or obtain sufficient bonding to cover the contract amount for construction services and risk and liability insurance as the department may require. (b) Any payment or performance bond written for the purposes of this article shall be written using a bond form developed by the department. (Added by Stats. 2021, Ch. 247, Sec. 1. (SB 626) Effective January 1, 2022. Repealed as of January 1, 2033, pursuant to Section 10112.10.)
  27. 10112.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. )

    Verify source ↗

    The construction manager must give public notice of subcontracted work, set a fixed award date and time, and follow department subcontracting procedures in the RFQ. Subcontractors bidding under this article are entitled to Chapter 4 protections, and the manager may use certain prequalification procedures if the department has adopted them.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. ) ## 10112.5. All subcontractors bidding on contracts pursuant to this article shall be afforded the protections contained in Chapter 4 (commencing with Section 4100) of Part 1. The construction manager shall do all of the following: (a) Provide public notice of the availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the department. (b) Provide a fixed date and time on which the subcontracted work will be awarded in accordance with the procedure established pursuant to this chapter. (c) Comply with any subcontracting procedures adopted by the department that were included in the department’s RFQ. If the department has adopted procedures to prequalify public works contractors, the construction manager may use the procedures to prequalify subcontractors. (Added by Stats. 2021, Ch. 247, Sec. 1. (SB 626) Effective January 1, 2022. Repealed as of January 1, 2033, pursuant to Section 10112.10.)
  28. 10112.6.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. )

    Verify source ↗

    The department may hire a design professional or construction project manager, or both, for the project to help ensure compliance with this article.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. ) ## 10112.6. The department may retain the services of a design professional or construction project manager, or both, throughout the course of the project in order to ensure compliance with this article. (Added by Stats. 2021, Ch. 247, Sec. 1. (SB 626) Effective January 1, 2022. Repealed as of January 1, 2033, pursuant to Section 10112.10.)
  29. 10112.7.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. )

    Verify source ↗

    Contracts awarded under this article before repeal keep running until they are completed or terminated.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. ) ## 10112.7. A contract awarded pursuant to this article before it is repealed on January 1, 2033, shall continue in full force and effect until completion, including any subsequently executed changes to the contract, or termination. (Added by Stats. 2021, Ch. 247, Sec. 1. (SB 626) Effective January 1, 2022. Repealed as of January 1, 2033, pursuant to Section 10112.10.)
  30. 10112.8.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. )

    Verify source ↗

    This section says the article is not meant to change any rights or remedies otherwise available at law.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. ) ## 10112.8. Nothing in this article is intended to affect, expand, alter, or limit any rights or remedies otherwise available at law. (Added by Stats. 2021, Ch. 247, Sec. 1. (SB 626) Effective January 1, 2022. Repealed as of January 1, 2033, pursuant to Section 10112.10.)
  31. 10112.9.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. )

    Verify source ↗

    The department must submit an interim report and a final report to the Legislature by specified dates.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.1. Construction Manager/General Contractor Procurement Method for the Department of Water Resources [10112 - 10112.10] ( Article 1.1 added by Stats. 2021, Ch. 247, Sec. 1. ) ## 10112.9. (a) The department shall prepare and submit to the Legislature an interim report no later than July 1, 2025, that describes each Construction Manager/General Contractor project approved under this article beginning January 1, 2022, and that provides relevant data, including, but not limited to, cost, the stage of completion, and estimated time to completion. (b) The department shall prepare and submit to the Legislature a final report, no later than July 1, 2028, that provides the relevant data referenced in subdivision (a) for projects that were approved under this article as of January 1, 2027. (c) Both the interim and final reports shall provide a comprehensive assessment on the effectiveness of the Construction Manager/General Contractor project delivery method relative to project cost and time savings. (d) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code. (Added by Stats. 2021, Ch. 247, Sec. 1. (SB 626) Effective January 1, 2022. Repealed as of January 1, 2033, pursuant to Section 10112.10.)
  32. 10113.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.3. Job Order Contracting Procurement Procedure for the Department of General Services [10113 - 10113.1] ( Article 1.3 added by Stats. 2024, Ch. 997, Sec. 19. )

    Verify source ↗

    This section defines key terms used in job order contracting for the Department of General Services.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.3. Job Order Contracting Procurement Procedure for the Department of General Services [10113 - 10113.1] ( Article 1.3 added by Stats. 2024, Ch. 997, Sec. 19. ) ## 10113. As used in this article: (a) “Adjustment factor” means the job order contractor’s competitively bid adjustment to the department’s prices as published in the unit price catalog. (b) “Department” means the Department of General Services or a successor state agency. (c) “Director” means the Director of General Services or a designee. (d) “Job order contract” means a competitively bid contract between the department and a responsible contractor in which the contractor agrees to a fixed period, fixed-unit price, and indefinite quantity contract that provides for job orders for public works. (e) “Technical specifications” means information published by the department detailing the technical specifications with regard to quality of materials and workmanship to be used by the job order contractor in accomplishing the tasks listed in the unit price catalog. (f) “Unit price” means the amount paid for a single unit of an item of work identified in the unit price catalog multiplied by the contractor’s adjustment factor. (g) “Unit price catalog” means a compilation of specific construction tasks and the unit prices to install or demolish that construction. The listed tasks shall be based on generally accepted industry standards and information, where available, for various items of work to be performed by the job order contractor. The prices shall include the cost of materials, labor, and equipment for performing the items of work. The prices shall not include overhead and profit. All unit prices shall be developed using local prevailing wages. (Added by Stats. 2024, Ch. 997, Sec. 19. (AB 179) Effective September 30, 2024.)
  33. 10113.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.3. Job Order Contracting Procurement Procedure for the Department of General Services [10113 - 10113.1] ( Article 1.3 added by Stats. 2024, Ch. 997, Sec. 19. )

    Verify source ↗

    This section lets the department use job order contracting for public works, but sets bidding rules, contract limits, wage requirements, and a skilled-workforce condition unless an exception applies.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.3. Job Order Contracting Procurement Procedure for the Department of General Services [10113 - 10113.1] ( Article 1.3 added by Stats. 2024, Ch. 997, Sec. 19. ) ## 10113.1. (a) Notwithstanding any other law, the department may use an alternative procurement procedure for public works contracts, as defined in Section 1101, as provided in this article. (b) The availability of job order contracting as a public works delivery method shall not preclude the use of other public works delivery methods. (c) The department may solicit for job order contractors by region, by specific scopes of work, or both. (d) Solicitations for job order contractors shall progress as follows: (1) The department shall prepare a set of documents for job order contracts. The documents shall include a unit price catalog, job order contract terms, job order contract technical specifications, and any other information deemed necessary by the department. (2) The department shall prepare a request for bids based on the documents prepared under paragraph (1) that invites job order contractors to submit sealed bids in a manner prescribed by the department. (3) Each bidding job order contractor shall include in its bid one or more adjustment factors to the established unit prices provided in the request for bids based on the contract technical specifications. (4) The department may award multiple job order contracts in response to a single job order contract solicitation as determined by the lowest combined adjustment factors as outlined in the invitation for bids. (e) Any architect, engineer, consultant, or contractor retained by the department to assist in the development of the job order contract solicitation documents shall not be eligible to bid or to participate in the preparation of a job order contract bid related to that solicitation. (f) Each job order executed under a job order contract shall provide an itemized list of each unit description required to complete the work with the unit’s associated unit price and the applied contractor’s adjustment factor. (g) Job order contracts may be executed for an initial contract term of no more than 24 months. (h) The maximum total dollar amount that may be awarded under a single job order contract shall not exceed ten million dollars ($10,000,000) in the first term of the job order contract. The department may issue up to four one-year extensions to each job order contract, up to an additional five million dollars ($5,000,000) per year. (i) No single job order may exceed one million dollars ($1,000,000), not including change orders necessary to complete the scope of the original project. (j) The maximum amounts specified for job order contract value and job order value shall be adjusted each January 1 to reflect the percentage change in the annual California Construction Index as used by the department. The amount shall be rounded off to the nearest one-thousand-dollar figure. (k) The authority granted to the department by this article shall not be deemed to waive any provision of the Labor Code that would otherwise apply, including, but not limited to, prevailing wage rates determined by the Director of Industrial Relations. (l) It is unlawful to split or separate job orders for the purpose of evading the cost limitation provisions of this section. (m) (1) A contractor shall not be awarded a job order contract unless the contractor provides an enforceable commitment to the director that the contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work for each job order that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1. (2) This subdivision shall not apply if any of the following requirements are met: (A) The department has entered into a project labor agreement that will bind all contractors and subcontractors performing work on each job order to use a skilled and trained workforce, and the contractor agrees to be bound by that project labor agreement. (B) The job order is being performed under the extension or renewal of a project labor agreement that was entered into by the department before January 1, 2024. (C) The contractor has entered into a project labor agreement that will bind the contractor and all its subcontractors at every tier performing work for each job order to use a skilled and trained workforce. (3) For purposes of this subdivision, “project labor agreement” has the same meaning as in paragraph (1) of subdivision (b) of Section 2500. (n) (1) A job order contract shall set forth in the general conditions of the job order contract the party or parties responsible for seeing that the provisions of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code are complied with. (2) For purposes of job order contracting, prevailing wages when required to be paid shall apply to all work ordered under the job order contract regardless of thresholds set forth in Section 1771.5 of the Labor Code. (3) The job order contractor shall pay the prevailing wage in effect at the time the job order is issued by the department and all increases as published by the Department of Industrial Relations for the term of the job order contract, including all overtime, holiday, and shift provisions published by the Department of Industrial Relations. (o) It is the intent of this legislation to streamline the delivery of public works. It is not the intent of the Legislature for job order contracting to displace work presently performed by state employees, nor to expand the types of public works performed by contractors. (Added by Stats. 2024, Ch. 997, Sec. 19. (AB 179) Effective September 30, 2024.)
  34. 10115.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. )

    Verify source ↗

    State agencies and other state governmental entities must apply statewide participation goals to covered contracts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. ) ## 10115. (a) The Legislature finds and declares all of the following: (1) The essence of the American economic system of private enterprise is free competition. Only through full and free competition can free markets, reasonable and just prices, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be assured. The preservation and expansion of that competition is basic to the economic well-being of this state and that well-being cannot be realized unless the actual and potential capacity of minority, women, and disabled veteran business enterprises is encouraged and developed. Therefore, it is the declared policy of the state to aid the interests of minority, women, and disabled veteran business enterprises in order to preserve reasonable and just prices and a free competitive enterprise, to ensure that a fair proportion of the total number of contracts or subcontracts for commodities, supplies, technology, property, and services are awarded to minority, women, and disabled veteran business enterprises, and to maintain and strengthen the overall economy of the state. (2) The opportunity for full participation in our free enterprise system by minority, women, and disabled veteran business enterprises is essential if this state is to attain social and economic equality for those businesses and improve the functioning of the state economy. (3) State agencies which have established short- and long-range minority, women, and disabled veteran participation goals are awarding 23 percent or more of their contracts to these business enterprises. (4) It is in the state’s interest to expeditiously improve the economically disadvantaged position of minority, women, and disabled veteran business enterprises. (5) The economic position of these businesses can be improved by providing long-range substantial goals for procurement by state agencies of commodities, professional services, and construction work from minority, women, and disabled veteran businesses. (6) Procurement by state agencies of goods and services from these businesses also benefits the state agencies and the citizens of the state by encouraging the expansion of the number of vendors for procurements, thereby encouraging competition among the vendors and promoting economic efficiency in the process. (b) It is the purpose of this article to do all of the following: (1) Encourage greater economic opportunity for minority, women, and disabled veteran business enterprises. (2) Promote competition among state agencies in order to enhance long-term economic efficiency in the procurement of construction, commodities, and professional services contracts. (3) Clarify and expand the program for the procurement by state agencies of commodities, professional services, and construction work from minority, women, and disabled veteran business enterprises. (c) Notwithstanding any other provision of law, contracts awarded by any state agency, department, officer, or other state governmental entity for construction, professional services (except those subject to Chapter 6 (commencing with Section 16850) of Part 3 of Division 4 of Title 2 of the Government Code), materials, supplies, equipment, alteration, repair, or improvement shall have statewide participation goals of not less than 15 percent for minority business enterprises, not less than 5 percent for women business enterprises and 3 percent for disabled veteran business enterprises. These goals apply to the overall dollar amount expended each year by the awarding department, as defined by Section 10115.1, pursuant to this article. (Amended by Stats. 1992, Ch. 1330, Sec. 6. Effective January 1, 1993.)
  35. 10115.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. )

    Verify source ↗

    This section defines terms used in the article, including “awarding department,” “contract,” “contractor,” “minority,” “minority business enterprise,” “women business enterprise,” and “goal.”

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. ) ## 10115.1. As used in this article, the following definitions apply: (a) “Awarding department” means a state agency, department, governmental entity, or other officer or entity empowered by law to enter into contracts on behalf of the State of California. (b) “Contract” includes an agreement or joint development agreement to provide labor, services, material, supplies, or equipment in the performance of a contract, franchise, concession, or lease granted, let, or awarded for and on behalf of the State of California. (c) “Contractor” means a person or persons, regardless of race, color, sex, ethnic origin or ancestry, or any firm, partnership, corporation, or combination thereof, whether or not a minority or women business enterprise, who submits a bid and enters into a contract with a representative of a state agency, department, governmental entity, or other officer empowered by law to enter into contracts on behalf of the State of California. (d) “Minority,” for purposes of this section, means a citizen or lawful permanent resident of the United States who is an ethnic person of color and who is: Black (a person having origins in any of the Black racial groups of Africa); Hispanic (a person of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese culture or origin regardless of race); Native American (an American Indian, Inuk, Aleut, or Native Hawaiian); Pacific-Asian (a person whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, or the United States Trust Territories of the Pacific, including the Northern Marianas); Asian-Indian (a person whose origins are from India, Pakistan, or Bangladesh); or any other group of natural persons identified as minorities in the respective project specifications of an awarding department or participating local agency. (e) “Minority business enterprise” means a business concern that meets all of the following criteria: (1) The business is an individual proprietorship, partnership, corporation, or joint venture at least 51 percent owned by one or more minorities or, in the case of any business whose stock is publicly held, at least 51 percent of the stock is owned by one or more minorities. (2) A business whose management and daily operations are controlled by one or more minorities who own the business. (3) A business concern with its home office located in the United States which is not a branch or subsidiary of a foreign corporation, firm, or other business. (f) “Women business enterprise” means a business concern that meets all of the following criteria: (1) The business is an individual proprietorship, partnership, corporation, or joint venture at least 51 percent owned by one or more women or, in the case of any business whose stock is publicly held, at least 51 percent of the stock is owned by one or more women. (2) A business whose management and daily operations are controlled by one or more women who own the business. (3) A business concern with its home office located in the United States which is not a branch or subsidiary of a foreign corporation, firm, or other business. (g) “Goal” means a numerically expressed objective that awarding departments and contractors are required to make efforts to achieve. (Amended by Stats. 2025, Ch. 67, Sec. 161. (AB 1170) Effective January 1, 2026.)
  36. 10115.10.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. )

    Verify source ↗

    It is unlawful for a person or firm to fraudulently seek certification, make false statements, obstruct investigations, or fraudulently obtain public money under this article; violators face misdemeanor liability, civil penalties, and suspension from state contracting.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. ) ## 10115.10. (a) It shall be unlawful for a person or firm to: (1) Knowingly and with intent to defraud, fraudulently obtain, retain, attempt to obtain or retain, or aid another in fraudulently obtaining or retaining or attempting to obtain or retain, acceptance or certification as a minority, women, or disabled veteran business enterprise, for the purposes of this article. (2) Willfully and knowingly make a false statement with the intent to defraud, whether by affidavit, report, or other representation, to a state official or employee for the purpose of influencing the acceptance or certification or denial of acceptance or certification of any entity as a minority, women, or disabled veteran business enterprise. (3) Willfully and knowingly obstruct, impede, or attempt to obstruct or impede, any state official or employee who is investigating the qualifications of a business entity which has requested acceptance or certification as a minority, women, or disabled veteran business enterprise. (4) Knowingly and with intent to defraud, fraudulently obtain, attempt to obtain, or aid another person or firm in fraudulently obtaining or attempting to obtain, public moneys to which the person is not entitled under this article. (5) Establish, or cooperate in the establishment of, or exercise control over, a firm found to have violated any of paragraphs (1) to (4), inclusive. Any person or firm who violates this paragraph is guilty of a misdemeanor and shall be liable for a civil penalty not to exceed fifty thousand dollars ($50,000) for the first violation, and a civil penalty not to exceed two hundred thousand dollars ($200,000) for each additional, or subsequent violation. (6) This section shall not apply to minority and women business enterprise programs conducted by public utility companies pursuant to the California Public Utilities Commission’s General Order 156. (b) Any person who violates paragraphs (1) to (4), inclusive, of subdivision (a) is guilty of a misdemeanor and shall be liable for a civil penalty not to exceed five thousand dollars ($5,000) for the first violation, and a civil penalty not to exceed twenty thousand dollars ($20,000) for each additional or subsequent violation. (c) Any person or firm that violates subdivision (a) shall, in addition to the penalties provided for in subdivision (b), be suspended from bidding on, or participating as either a contractor, subcontractor, or supplier in, any state contract or project for a period of not less than 30 days nor more than one year. However, for an additional or subsequent violation the period of suspension shall be extended for a period of up to three years. Any person or firm that fails to satisfy the penalties imposed pursuant to subdivisions (b) and (c) shall be prohibited from further contracting with the state until the penalties are satisfied. (d) The awarding department shall report all alleged violations of this section to the Office of Small and Minority Business. The office shall subsequently report all alleged violations to the Attorney General who shall determine whether to bring a civil action against any person or firm for violation of this section. (e) The office shall monitor the status of all reported violations and shall maintain and make available to all state departments a central listing of all firms and persons who have been determined to have committed violations resulting in suspension. (f) No awarding department shall enter into any contract with any person or firm suspended for violating this section during the period of the person’s or firm’s suspension. No awarding department shall award a contract to any contractor utilizing the services of any person or firm as a subcontractor suspended for violating this section during the period of the person’s or firm’s suspension. (g) The awarding department shall check the central listing provided by the office to verify that the person, firm, or contractor to whom the contract is being awarded, or any person or firm being utilized as a subcontractor by that person, firm, or contractor, is not under suspension for violating this section. (Amended by Stats. 1993, Ch. 1032, Sec. 6. Effective January 1, 1994.)
  37. 10115.11.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. )

    Verify source ↗

    The participation goals do not count inmate day labor contracts, and they also apply to the yearly total spent on certain Department of Corrections contracts, except contracts for inmate medical services.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. ) ## 10115.11. (a) Notwithstanding any other provision of this article, statewide participation goals for contracts let by the Department of Corrections shall be exclusive of inmate day labor contracts. (b) The goals established in this article shall also apply to the overall dollar amount expended each year on contracts let by the California Department of Corrections for the purposes of services, maintenance, and supplies excluding contracts for services for inmate medical needs. (Added by renumbering Section 10108.6 by Stats. 1992, Ch. 1330, Sec. 5. Effective January 1, 1993.)
  38. 10115.12.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. )

    Verify source ↗

    State awarding departments must require bidders to disclose certain subcontractor details, and prime contractors generally may list only one subcontractor per work portion unless an emergency exception applies.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. ) ## 10115.12. (a) Any awarding department taking bids in connection with the award of any contract shall provide in the general conditions under which bids will be received, that any person making a bid or offer to perform a contract shall, in his or her bid or offer, set forth the following information: (1) The name and the location of the place of business of each subcontractor certified as a minority, women, or disabled veteran business enterprise who will perform work or labor or render service to the prime contractor in connection with the performance of the contract and who will be used by the prime contractor to fulfill minority, women, and disabled veteran business enterprise participation goals. (2) The portion of work that will be done by each subcontractor under paragraph (1). Except in cases of emergency where a contract is necessary for the immediate preservation of the public health, welfare, or safety, or protection of state property, the prime contractor shall list only one subcontractor for each portion of work as is defined by the prime contractor in his or her bid or offer. (b) The Subletting and Subcontracting Fair Practices Act (Chapter 4 (commencing with Section 4100) of Part 1 shall apply to the information required by subdivision (a) relating to subcontractors certified as minority, women, or disabled veteran business enterprises. (c) For purposes of this section, “subcontractor” and “prime contractor” shall have the same meaning as those terms are defined in Section 4113. (d) As used in this section, “contract” does not include a contract negotiated pursuant to Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code. (Added by Stats. 1993, Ch. 1032, Sec. 7. Effective January 1, 1994.)
  39. 10115.13.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. )

    Verify source ↗

    State entities awarding contracts for general public advertisements must set statewide participation goals for minority, women, and disabled veteran business enterprises.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. ) ## 10115.13. Notwithstanding any other provision of law, contracts awarded by any state agency, department, officer, or other state governmental entity for the purchase of general public advertisements shall have statewide participation goals of not less than 15 percent for minority business enterprises, not less than five percent for women business enterprises, and three percent for disabled veteran business enterprises. These goals apply to the overall dollar amount expended each year by the awarding state agency, department, offices, or other state governmental entity. (Added by Stats. 1993, Ch. 1034, Sec. 2. Effective January 1, 1994.)
  40. 10115.15.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. )

    Verify source ↗

    State contract bidders using a utilization plan must meet the solicitation’s participation goals, and the Department of General Services must audit and may disapprove plans.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. ) ## 10115.15. (a) Notwithstanding Section 10115.2, when awarding contracts for materials, supplies, or equipment, including electronic data processing goods and services, an awarding department shall accept the submission by a bidder of a minority, women, and disabled veteran business enterprise utilization plan that has been approved prior to the solicitation due date by the Department of General Services. A business utilization plan shall be considered approved by the Department of General Services as of the date submitted to the department so long as the plan meets the minimum criteria established in paragraphs (1) to (12), inclusive, and shall be valid for a period of one year, unless the department has audited the utilization plan, as authorized under subdivision (b), and disapproves it for reasons specified under subdivision (c). The decision of whether to establish a minority, women, and disabled veteran business enterprise utilization plan shall be at the option of the vendor. If a bidder cites an approved utilization plan in response to the minority, women, and disabled veteran business enterprise participation requirements of a solicitation that calls for 15 percent minority-owned, 5 percent women-owned, and 3 percent disabled veteran-owned business participation, then that utilization plan shall be considered responsive to the participation goals of the solicitation document. If a solicitation specifies higher participation goals than those in the bidder’s utilization plan, the bidder shall meet the goals in the solicitation. At a minimum, the utilization plan shall include the following information: (1) A statement of the vendor’s minority, women, and disabled veteran business enterprise utilization plan, including the primary objectives of the utilization plan. (2) An explanation showing sufficient business reasons why the vendor did not meet minority, women, and disabled veteran business enterprise participation goals set forth in the vendor’s minority, women, and disabled veteran business utilization plan submitted to, and approved by, the Department of General Services in the previous year, if applicable. Further, if the vendor did not meet the minority, women, and disabled veteran business participation goals in the previous year, the vendor shall also identify remedial steps it will take to meet the goals in the current utilization plan. (3) A statement of the vendor’s minority, women, and disabled veteran business utilization goals for the succeeding year. At a minimum, these utilization goals shall be equal to the statewide participation goals set forth in subdivision (c) of Section 10115. (4) Estimated total dollars to be subcontracted by the vendor for sales within the United States for the succeeding year. (5) Estimated total dollars to be subcontracted by the vendor for sales within the State of California for the succeeding year. (6) Total dollars expressed as a percentage of the amount estimated pursuant to paragraph (4), intended to be subcontracted with each of the following: (A) Minority business enterprises. (B) Women business enterprises. (7) Total dollars, expressed as a percentage of the amount estimated pursuant to paragraph (5), intended to be subcontracted with disabled veteran-owned business enterprises. (8) A representative listing of the products and services that the vendor anticipates subcontracting, including an identification of the types of subcontracting planned for minority, women, and disabled veteran business enterprises. (9) The name of the individual employed by the vendor who will administer the vendor’s utilization plan, including a description of the duties of the individual. (10) A description of the efforts that the vendor will undertake to ensure that minority, women, and disabled veteran business enterprises will have an equitable opportunity to compete for contracts. (11) A listing of the records and reports that the vendor will maintain to demonstrate the practices and procedures that have been adopted to comply with the requirements and goals of the utilization plan. (12) Affirmation that the vendor met the statewide minority, women, and disabled veteran business enterprise utilization goals for the previous year, if applicable. (b) The Department of General Services shall conduct random audits of the submitted utilization plans to determine compliance with this article, and shall retain on file all submitted utilization plans for auditing purposes. During any audit of a submitted utilization plan, the Department of General Services may ask a vendor to submit a list of all the minority, women, and disabled veteran business enterprises included as subcontractors in the vendor’s plan for the previous year. This information shall remain confidential. Nothing in this section shall be construed to require the Department of General Services to audit all of the minority, women, and disabled veteran business enterprise utilization plans submitted by individual vendors. The Department of General Services may establish appropriate fees to cover the actual costs of conducting random audits and retaining on file all submitted plans. (c) (1) At any time, the Department of General Services may disapprove a vendor’s minority, women, and disabled veteran business enterprise utilization plan for any of the following reasons: (A) The utilization plan fails to evidence a vendor’s intention to comply fully with the statewide minority, women, and disabled veteran business enterprise goals for the succeeding year, as indicated by failure of the utilization plan to contain the information specified in subdivision (a). (B) The utilization plan fails to evidence sufficient business reasons for failure to achieve the minority, women, and disabled veteran business enterprise goals set forth in a utilization plan submitted in the previous year, if applicable. (C) The utilization plan fails to evidence sufficient remedial steps the vendor will take if the vendor did not meet the minority, women, and disabled veteran business participation goals in the previous year, if applicable. (2) If a vendor’s utilization plan is disapproved, the vendor may not submit a new utilization plan to the department for a period of one year from the date of disapproval. Prior to disapproval of a vendor’s utilization plan, the vendor shall be entitled to a public hearing and to five days’ notice of the time and place thereof. The notice shall state the reasons for the hearing. (3) A vendor that submits a minority, women, and disabled veteran business utilization plan that is approved by the Department of General Services, and that is subsequently awarded a contract to which the vendor would not otherwise have been entitled, and who fails to evidence intention to fully comply with the minority, women, and disabled veteran business enterprise goals in the utilization plan, or fails to evidence sufficient business reasons for failing to achieve the minority, women, and disabled veteran business enterprise goals set forth in the utilization plan, shall: (A) Pay to the state any difference between the contract amount and what the state’s cost would have been if the contract had been properly awarded. (B) In addition to the amount specified in subparagraph (A), be assessed a penalty in an amount of not more than 10 percent of the amount of the contract involved. (C) Be ineligible to transact any business with the state for a period of not less than three months and not more than 24 months. Prior to imposition of any sanction under this chapter, the contractor or vendor shall be entitled to a public hearing and to five days’ notice of the time and place thereof. The notice shall state the reasons for the hearing. (Amended by Stats. 2009, 4th Ex. Sess., Ch. 19, Sec. 2. Effective July 28, 2009.)
  41. 10115.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. )

    Verify source ↗

    When awarding contracts to the lowest responsible bidder, the awarding department must consider bidder efforts to meet specified minority, women, and disabled veteran business enterprise goals, and must award the contract to the lowest responsible bidder meeting those goals.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. ) ## 10115.2. In awarding contracts to the lowest responsible bidder, the awarding department shall consider the efforts of a bidder to meet minority business enterprise, women business enterprise, and disabled veteran business enterprise goals set forth in this article. The awarding department shall award the contract to the lowest responsible bidder meeting these goals. (Amended by Stats. 2009, 4th Ex. Sess., Ch. 19, Sec. 1. Effective July 28, 2009.)
  42. 10115.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. )

    Verify source ↗

    The awarding department must set up a way to monitor compliance with this article’s goals and must adopt rules and regulations to implement the article. It may also adopt emergency regulations that are consistent with the section.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. ) ## 10115.3. (a) The awarding department shall establish a method of monitoring adherence to the goals specified in this article. (b) The awarding department shall adopt rules and regulations for the purpose of implementing this article. Emergency regulations consistent with this section may be adopted. (Added by Stats. 1988, Ch. 61, Sec. 3.)
  43. 10115.4.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. )

    Verify source ↗

    When implementing this article, the awarding department must use existing resources, including the Office of Small and Minority Business, the Minority Business Development Agency, and the Small Business Administration.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. ) ## 10115.4. In implementing this article, the awarding department shall utilize existing resources such as the Office of Small and Minority Business, the Minority Business Development Agency, and the Small Business Administration. (Added by Stats. 1988, Ch. 61, Sec. 3.)
  44. 10115.6.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. )

    Verify source ↗

    If an awarding department misses the article’s goals, that failure does not invalidate or make unenforceable the related contract or related bonds, notes, or other obligations.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. ) ## 10115.6. Notwithstanding any other provision of this article, the failure of an awarding department to meet the goals established under this article shall not affect the validity or enforceability of any contract or any bonds, notes, or other obligations issued by the awarding department to provide for the payment of any contract subject to this article. (Added by Stats. 1988, Ch. 61, Sec. 3.)
  45. 10115.7.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. )

    Verify source ↗

    This section says the article does not authorize awarding departments or contractors to discriminate.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. ) ## 10115.7. (a) Nothing in this article shall be construed to authorize any awarding department to discriminate in the awarding of any contract on the basis of ancestry or any characteristic listed or defined in Section 11135 of the Government Code. (b) Nothing in this article shall be construed to authorize any contractor to discriminate in the solicitation or acceptance of bids for subcontracting, or for materials or equipment, on the basis of ancestry or any characteristic listed or defined in Section 11135 of the Government Code. (Amended by Stats. 2007, Ch. 568, Sec. 40. Effective January 1, 2008.)
  46. 10115.8.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. )

    Verify source ↗

    If part of this article is invalid, the rest still remains effective if it can work without the invalid part.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. ) ## 10115.8. If any provision of this article or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the article which can be given effect without the invalid provision or application, and to this end the provisions of this article are severable. (Added by Stats. 1989, Ch. 1229, Sec. 9.)
  47. 10115.9.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. )

    Verify source ↗

    A limited liability company may be certified as a disabled veteran business enterprise if it is wholly owned by one or more disabled veterans.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 1.5. Minority and Women Business Participation Goals for State Contracts [10115 - 10115.15] ( Article 1.5 added by Stats. 1988, Ch. 61, Sec. 3. ) ## 10115.9. A limited liability company may be certified as a disabled veteran business enterprise pursuant to this article if the limited liability company is wholly owned by one or more disabled veterans. (Added by Stats. 2003, Ch. 632, Sec. 5. Effective January 1, 2004.)
  48. 10120.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    Before making a project contract, the department must prepare complete and accurate plans, specifications, and cost estimates, and give directions that let a competent builder carry them out.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. ) ## 10120. Before entering into any contract for a project, the department shall prepare full, complete, and accurate plans and specifications and estimates of cost, giving such directions as will enable any competent mechanic or other builder to carry them out. (Enacted by Stats. 1981, Ch. 306.)
  49. 10121.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    Before further action is taken, the original draft or a certified copy of the plans, specifications, and estimates of cost must be filed permanently in the department’s office.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. ) ## 10121. The original draft or a certified copy of the plans, specifications, and estimates of cost shall be filed permanently in the office of the department before further action is taken. (Amended by Stats. 1998, Ch. 857, Sec. 5. Effective January 1, 1999.)
  50. 10122.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    State projects must generally be awarded to the lowest responsible bidder, with limited emergency and best-interest exceptions.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. ) ## 10122. Work on all projects shall be done under contract awarded to the lowest responsible bidder pursuant to this part, except that it may be done by day’s labor under the direction of the department, by contract upon informal bids, or by a combination thereof: (a) In case of emergency due to the failure or threat of failure of any bridge or other highway structure. (b) In case of emergency due to the failure or threat of failure of any dam, reservoir, aqueduct, or other water facility or facility appurtenant thereto. (c) In case of emergency due to damage to a state-owned building or any other state-owned real property or improvements located thereon, by an act of God, including but not limited to damage by storm, flood, fire or earthquake, for work and remedial measures which are required immediately. (d) At any time after the approval of plans, specifications and estimates of cost, if the director deems the advertising or award of a contract, the acceptance of any bid, or the acceptance of any further bids after the rejection of all submitted bids, is not in the best interests of the state. (Enacted by Stats. 1981, Ch. 306. Note: This text was suspended from Jan. 1, 1985, until Jan. 1, 1991, during operation of the temporary amendment by Stats. 1984, Ch. 758.)
  51. 10122.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    The Department of Corrections and Rehabilitation must use represented individuals for day labor, unless qualified individuals are not reasonably available.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. ) ## 10122.5. For the purposes of Section 10122, all day labor utilized by the Department of Corrections and Rehabilitation shall be performed by individuals who are represented by a duly authorized employee representative unless individuals with that qualification are not reasonably available. (Amended by Stats. 2008, Ch. 116, Sec. 3. Effective January 1, 2009.)
  52. 10122.6.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    Work over $25,000 that would otherwise be a project may not be done by day’s labor unless Section 10122’s requirements are met.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. ) ## 10122.6. Notwithstanding the project cost limit provided in Section 10105, work in excess of twenty-five thousand dollars ($25,000) which would otherwise constitute a project, shall not be done by day’s labor unless the requirements of Section 10122 are met. (Added by Stats. 1985, Ch. 615, Sec. 2.)
  53. 10123.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    Informal-bid state contracts may be let only to holders of a valid state contractor’s license, unless the work is exempt from that licensing requirement by another law.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. ) ## 10123. Contracts upon informal bids authorized under Section 10122 shall be let only to a holder of a valid state contractor’s license unless such work is exempt from such licensing requirement by any other provision of law. (Enacted by Stats. 1981, Ch. 306.)
  54. 10124.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    Bids may be received and contracts may be awarded on a unit basis.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. ) ## 10124. Bids may be received and contracts awarded on a unit basis, that is, the bids compared upon the basis of estimates of the quantities of the work to be done. (Enacted by Stats. 1981, Ch. 306.)
  55. 10125.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    Except for unit basis contracts, the director must not approve plans, specifications, or cost estimates that would require spending more than the amount appropriated by law for the specific purpose.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. ) ## 10125. Except in unit basis contracts, contracts shall not be made exceeding in amount the estimates of costs approved by the director and plans and specifications and estimates of costs including expense of advertising and inspection, shall not be approved by the director requiring a greater expenditure of money than is appropriated for the specific purpose in the law authorizing the expenditure. (Enacted by Stats. 1981, Ch. 306.)
  56. 10126.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    This section lets the director approve a cost estimate with alternates, but only if the contingency estimates are made, the alternates stay within 10% of the project estimate, and enough funds are available for the base project. If bid items are additive or deductive, the solicitation must state how the lowest bid will be determined; otherwise only method (1) applies. The contract goes to the lowest bidder, and a responsible lowest bidder must be awarded the contract if one is awarded.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. ) ## 10126. Notwithstanding the provisions of Section 10125, the estimate of cost may be approved by the director, which includes alternates contemplating additions to, or deletions from, the base bid, provided that all of the following requirements are met: (a) Estimates are made for each contingency and, in the aggregate, the alternates do not exceed 10 percent of the estimated cost for the project. (b) The available funds are at least sufficient to cover the filed estimate for the base project. (c) Whenever additive or deductive items are included in a bid, the bid solicitation shall specify which one of the following methods will be used to determine the lowest bid. In the absence of such a specification, only the method provided by paragraph (1) will be used: (1) The lowest bid shall be the lowest bid price on the base contract without consideration of the prices on the additive or deductive items. (2) The lowest bid shall be the lowest total of the bid prices on the base contract and those additive or deductive items that were specifically identified in the bid solicitation as being used for the purpose of determining the lowest bid price. (3) The lowest bid shall be the lowest total of the bid prices on the base contract and those additive or deductive items that, when taken in order from a specifically identified list of those items in the solicitation, and added to, or subtracted from, the base contract, are less than, or equal to, a funding amount publicly disclosed by the department before the first bid is opened. (4) The lowest bid shall be determined in a manner that prevents any information that would identify any of the bidders or proposed subcontractors or suppliers from being revealed to the public entity before the ranking of all bidders from lowest to highest has been determined. (d) The contract is awarded to the lowest bidder, as determined by the method prescribed in subdivision (c). (e) A responsible bidder who submitted the lowest bid as determined by this section shall be awarded the contract, if it is awarded. This section does not preclude the department from adding to or deducting from the contract any of the additive or deductive items after the lowest responsible bidder has been determined. (f) Nothing in this section shall preclude the prequalification of subcontractors. (Amended by Stats. 2002, Ch. 455, Sec. 1. Effective January 1, 2003.)
  57. 10127.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    The department may, with approval from the State Public Works Board, treat several public works projects as one project for bidding, if the projects are within 100 miles of each other.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. ) ## 10127. The department may, with the approval of the State Public Works Board, receive bids for the construction of several public works projects as a single project. Where more than one appropriation has been made for the several projects united as a single project under the provisions of this section, payments for the single project shall be made from the separate appropriations on the proportional basis that may be determined by the department and approved by the Department of Finance. In the case of several projects united as a single project pursuant to this section, those projects shall be within 100 miles of one another. (Amended by Stats. 1998, Ch. 857, Sec. 6. Effective January 1, 1999.)
  58. 10128.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    Contracts awarded under this part must follow the applicable Labor Code provisions for public works contracts and include all contract provisions required by those rules.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. ) ## 10128. All contracts awarded under this part shall comply with the applicable provisions of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code relating to public works contracts and shall contain all the contract provisions required therein. (Enacted by Stats. 1981, Ch. 306.)
  59. 10129.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    State agencies letting public-works contracts generally may not write bid specifications that restrict bidding to one source or use brand names unless they add “or equal.”

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 2. Plans and Specifications [10120 - 10129] ( Article 2 enacted by Stats. 1981, Ch. 306. ) ## 10129. (a) Notwithstanding Section 3400, no agency of the state charged with the letting of contracts for the construction, alteration, or repair of public works may draft or cause to be drafted specifications for bids, in connection with the construction, alteration, or repair of public works, (1) in a manner that limits the bidding, directly or indirectly, to any one specific concern, or (2) calling for a designated material, product, thing, or service by specific brand or trade name unless the specification is followed by the words “or equal” so that bidders may furnish any equal material, product, thing, or service. In applying this section, the awarding authority shall, if aware of an equal product manufactured in this state, name that product in the specification. Specifications shall provide a period of time prior to or after, or prior to and after, the award of the contract for submission of data substantiating a request for a substitution of “an equal” item. If no time period is specified, data may be submitted any time within 35 days after the award of the contract. (b) Subdivision (a) is not applicable if the awarding authority, or its designee, makes a finding that is described in the invitation for bids or request for proposals that a particular material, product, thing, or service is designated by specific brand or trade name for any of the following purposes: (1) In order that a field test or experiment may be made to determine the product’s suitability for future use. (2) In order to match other products in use on a particular public improvement either completed or in the course of completion. (3) In order to obtain a necessary item that is only available from one source. (4) In order to respond to an emergency declared by the state, a state agency, or political subdivision of the state, but only if the facts setting forth the reasons for the finding of the emergency are contained in the public records of the authority issuing the invitation for bid or request for proposals. (Amended by Stats. 2003, Ch. 233, Sec. 2. Effective January 1, 2004.)
  60. 10140.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 3. Advertisements for Bids [10140 - 10141] ( Article 3 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    Public notice for a project must be published in the required newspapers or trade papers, and the Department of Transportation may use its website instead for the basic notice requirement.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 3. Advertisements for Bids [10140 - 10141] ( Article 3 enacted by Stats. 1981, Ch. 306. ) ## 10140. (a) Public notice of a project shall be given by publication once a week for at least two consecutive weeks or once a week for more than two consecutive weeks if the longer period of advertising is deemed necessary by the department, as follows: (1) In a newspaper of general circulation published in the county in which the project is located, or if located in more than one county, in such a newspaper in a county in which a major portion of the work is to be done. (2) In a trade paper of general circulation published in San Francisco for projects located in County Group No. 1, as defined in Section 187 of the Streets and Highways Code, or in Los Angeles for projects located in County Group No. 2, as defined in Section 187 of the Streets and Highways Code, devoted primarily to the dissemination of contract and building news among contracting and building materials supply firms. (b) The department may publish the notice to bidders for a project in additional trade papers or newspapers of general circulation that it deems advisable. (c) (1) In the case of the Department of Transportation, instead of the public notice described in subdivision (a), the public notice requirement of this section may instead be met by publishing the public notice electronically on that department’s Internet Web site. (2) If the department exercises its authority under paragraph (1), the department shall also publish information regarding notices listed on the department’s Internet Web site in trade papers, newspapers, or magazines, as appropriate in order to ensure all communities have access to the public notice, including those publications whose primary audience consists of underrepresented groups, including, but not limited to, women, minorities, LGBT, and disabled veterans, pursuant to the frequency requirements specified in subdivision (a). (Amended by Stats. 2017, Ch. 95, Sec. 9. (SB 103) Effective July 21, 2017.)
  61. 10141.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 3. Advertisements for Bids [10140 - 10141] ( Article 3 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    The notice must state when and where sealed bids will be received and opened, and describe the work in general terms.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 3. Advertisements for Bids [10140 - 10141] ( Article 3 enacted by Stats. 1981, Ch. 306. ) ## 10141. The notice shall state the time and place for the receiving and opening of sealed bids, describing in general terms the work to be done and that the bids will be required for the entire project and for the performance of separate designated parts of the entire project, when the department determines that segregation is advisable. (Enacted by Stats. 1981, Ch. 306.)
  62. 10160.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    The department may require prospective bidders to answer questionnaire and financial-statement questions, and bidders must verify the completed questionnaire and statement under oath.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. ) ## 10160. The department may require from prospective bidders answers to questions contained in a standard form of questionnaire and financial statement including a complete statement of the prospective bidder’s financial ability and experience in performing public works. When completed, the questionnaire and financial statement shall be verified under oath by the bidder in the manner in which pleadings in civil actions are verified. Whenever prequalification is required of any bidder on a contract, it shall be required for all prospective bidders to that contract. (Amended by Stats. 1993, Ch. 471, Sec. 1. Effective January 1, 1994.)
  63. 10161.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    The department may require prospective bidders to complete a safety questionnaire, and it may refuse prequalification in certain cases. The department must also give the bidder a hearing before issuing a refusal, and the Director of Industrial Relations must approve the questionnaire and related guidelines before use.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. ) ## 10161. The department may also require from prospective bidders the completion, under penalty of perjury, of a standard form of questionnaire concerning the past safety record of each prospective bidder, any officer of such bidder, and any managing employee of such bidder. The department may refuse to prequalify any prospective bidder who fails to submit a completed questionnaire when required, or for the reason that the information contained in the submitted questionnaire or otherwise known to the department indicates a continuing unsatisfactory safety record. The director of the department shall prescribe guidelines listing criteria which will be utilized administratively in determining an unsatisfactory safety record. A refusal by the department to prequalify a prospective bidder shall be issued only after the department has granted such bidder a hearing. This section shall in no way abridge or restrict the right of the department to later determine whether the low bidder on a particular project is the lowest responsible bidder for purposes of award of the contract, including the holding of hearings thereon. The Director of Industrial Relations shall approve the standard form of questionnaire and the guidelines listing criteria which will be utilized administratively by the department in determining an unsatisfactory safety record prior to their use by the department. (Enacted by Stats. 1981, Ch. 306.)
  64. 10162.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    The department must require prospective bidders to complete a questionnaire under penalty of perjury.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. ) ## 10162. The department shall require from all prospective bidders the completion, under penalty of perjury, of a standard form of questionnaire inquiring whether such prospective bidder, any officer of such bidder, or any employee of such bidder who has a proprietary interest in such bidder, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of a violation of law or a safety regulation, and if so to explain the circumstances. A bid may be rejected on the basis of a bidder, any officer of such bidder, or any employee of such bidder who has a proprietary interest in such bidder, having been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local project because of a violation of law or a safety regulation. (Enacted by Stats. 1981, Ch. 306.)
  65. 10163.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    The department must rate bidders using a uniform system and cannot award a contract if the award would push a bidder beyond its prequalification rating.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. ) ## 10163. The department shall adopt and apply a uniform system of rating bidders, on the basis of the standard questionnaires and financial statements, in respect to the size of the contracts upon which each bidder is qualified to bid. When bids for more than one project are to be received at the same bid opening, the department may permit a bidder to submit bids for each project within such bidder’s prequalification rating, even though such rating is insufficient to permit the bidder to be awarded the contract for each project bid upon. In no event shall any bidder be awarded a contract if such contract award would result in the bidder having under contract work for which prequalification is required in excess of that authorized by his prequalification rating. In determining whether an award of a contract would result in a bidder having under contract work in excess of that authorized by his prequalification rating, the department may use its estimated cost of such contract rather than the amount of the bidder’s bid. If the department determines that a bidder would be awarded the contract for two or more projects but cannot be awarded the contract for all such projects because of the inadequacy of his prequalification rating, the department shall determine which of the bids of such bidder are to be accepted and the contract awarded thereon and which of the bids of such bidder are to be disregarded. In making its decision the department shall be guided by the combination of contract awards which will result in the lowest total cost for the projects involved. (Enacted by Stats. 1981, Ch. 306.)
  66. 10164.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    For state projects with federal funds, a bid cannot be rejected just because the bidder is not licensed, but the contractor must be properly licensed when the contract is awarded.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. ) ## 10164. In all state projects where federal funds are involved, no bid submitted shall be invalidated by the failure of the bidder to be licensed in accordance with the laws of this state. However, at the time the contract is awarded, the contractor shall be properly licensed in accordance with the laws of this state. The contract shall not be awarded unless the state agency has verified that the contractor has a valid license in the appropriate classification for the work performed. Any bidder or contractor not so licensed shall be subject to all legal penalties imposed by law, including, but not limited to, any appropriate disciplinary action by the Contractors State License Board. The department shall include a statement to that effect in the standard form of prequalification questionnaire and financial statement. Failure of the bidder to obtain proper and adequate licensing for an award of a contract shall constitute a failure to execute the contract as provided in Section 10181 and shall result in the forfeiture of the security of the bidder. (Amended by Stats. 1994, Ch. 432, Sec. 1. Effective January 1, 1995.)
  67. 10165.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    Questionnaires and financial statements are not public records and cannot be publicly inspected.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. ) ## 10165. The questionnaires and financial statements are not public records and are not open to public inspection. (Enacted by Stats. 1981, Ch. 306.)
  68. 10166.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    The department must give each bidder a standard proposal form, and must not give proposal forms to certain unprequalified persons.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. ) ## 10166. The department shall furnish to each bidder a standard proposal form, which, when filled out and executed may be submitted as his bid. Bids not presented on forms so furnished shall be disregarded. The department shall not furnish proposal forms to any person who is required to submit and has not submitted a questionnaire and financial statement for prequalification at least five days prior to the date fixed for publicly opening sealed bids and been prequalified for at least one day prior to that date. (Enacted by Stats. 1981, Ch. 306.)
  69. 10167.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    Bids must be sealed and include bidder’s security, and the security must be at least 10% of the bid amount.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. ) ## 10167. (a) All bids shall be presented under sealed cover and accompanied by one of the following forms of bidder’s security: (1) An electronic bidder’s bond by an admitted surety insurer submitted using an electronic registry service approved by the department advertising the contract. (2) A signed bidder’s bond by an admitted surety insurer received by the department advertising the contract. (3) Cash, a cashier’s check, or certified check received by, and made payable to, the director of the department advertising the contract. (b) The required bidder’s security shall be in an amount equal to at least 10 percent of the amount bid. A bid shall not be considered unless one of the forms of bidder’s security is enclosed with it. (c) All bids submitted pursuant to this section shall also comply with the provisions of Section 1601 of the Public Contract Code. (Amended by Stats. 2012, Ch. 290, Sec. 3. (AB 1671) Effective January 1, 2013.)
  70. 10168.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    A bid must not be received after the time set in the public notice for opening bids.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. ) ## 10168. Whether or not bids are opened exactly at the time fixed in the public notice for opening bids, a bid shall not be received after that time. (Enacted by Stats. 1981, Ch. 306.)
  71. 10169.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    A bidder may withdraw a bid only before bid-opening time, and only by filing a written request with the specified department or division official.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 4. Bids and Bidders [10160 - 10169] ( Article 4 enacted by Stats. 1981, Ch. 306. ) ## 10169. Any bid may be withdrawn at any time prior to the time fixed in the public notice for the opening of bids only by written request for the withdrawal of the bid filed with the director of the department or the chief of the division under which the work is to be performed. The request shall be executed by the bidder or his duly authorized representative. The withdrawal of a bid does not prejudice the right of the bidder to file a new bid. This section does not authorize the withdrawal of any bid after the time fixed in the public notice for the opening of bids. (Enacted by Stats. 1981, Ch. 306.)
  72. 10180.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 5. Award of Contracts [10180 - 10186] ( Article 5 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    The department must open the sealed bids on the day named in the public notice and award the contracts to the lowest responsible bidders.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 5. Award of Contracts [10180 - 10186] ( Article 5 enacted by Stats. 1981, Ch. 306. ) ## 10180. On the day named in the public notice, the department shall publicly open the sealed bids and award the contracts to the lowest responsible bidders. In the case of bids opened by a district director, pursuant to Section 10141, he shall report the contents thereof to the director. In all other respects, the contracts shall be awarded as are other contracts. (Enacted by Stats. 1981, Ch. 306.)
  73. 10181.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 5. Award of Contracts [10180 - 10186] ( Article 5 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    If the successful bidder does not execute the contract, the bidder’s security is forfeited to the state.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 5. Award of Contracts [10180 - 10186] ( Article 5 enacted by Stats. 1981, Ch. 306. ) ## 10181. If the successful bidder fails to execute the contract, his bidder’s security shall be forfeited to the state. The cash or proceeds shall be deposited in the fund out of which the expenses of preparation and printing of the plans and specifications, estimates of cost, and publication of notice are paid. (Enacted by Stats. 1981, Ch. 306.)
  74. 10182.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 5. Award of Contracts [10180 - 10186] ( Article 5 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    The director may award a contract to the second lowest responsible bidder, or then to the third lowest responsible bidder, if the prior bidder fails or refuses to execute it and the state’s best interests are served.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 5. Award of Contracts [10180 - 10186] ( Article 5 enacted by Stats. 1981, Ch. 306. ) ## 10182. If the director deems it is for the best interests of the state, he may, on the refusal or failure of the successful bidder to execute the contract, award it to the second lowest responsible bidder. If the second lowest responsible bidder fails or refuses to execute the contract, the director may likewise award it to the third lowest responsible bidder. On the failure or refusal of the second or third lowest bidder, to whom a contract is so awarded, to execute it, his bidder’s security shall be likewise forfeited to the state. (Enacted by Stats. 1981, Ch. 306.)
  75. 10183.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 5. Award of Contracts [10180 - 10186] ( Article 5 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    If the successful bidder does not furnish any bond required by law within the time fixed for executing the contract, that failure counts as a failure to execute the contract.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 5. Award of Contracts [10180 - 10186] ( Article 5 enacted by Stats. 1981, Ch. 306. ) ## 10183. The failure of the successful bidder to furnish any bond required of him by law, within the time fixed for his execution of the contract, constitutes a failure to execute the contract. (Enacted by Stats. 1981, Ch. 306.)
  76. 10184.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 5. Award of Contracts [10180 - 10186] ( Article 5 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    The bidders’ security of the second and third lowest responsible bidders may be kept until the contract is finally executed. Other unsuccessful bidders must get their cash, cashier’s checks, and certified checks back within 10 days after award, and their bonds stop having effect.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 5. Award of Contracts [10180 - 10186] ( Article 5 enacted by Stats. 1981, Ch. 306. ) ## 10184. The bidders’ security of the second and third lowest responsible bidders may be withheld until the contract has been finally executed. The cash, cashier’s checks and certified checks submitted by all other unsuccessful bidders shall be returned to them within 10 days after the contract is awarded, and their bidders’ bonds shall be of no further effect. (Enacted by Stats. 1981, Ch. 306.)
  77. 10185.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 5. Award of Contracts [10180 - 10186] ( Article 5 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    If the director decides the lowest responsible bid is not in the state’s best interests, the director may reject all bids and either do the work by day’s labor or seek other bids.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 5. Award of Contracts [10180 - 10186] ( Article 5 enacted by Stats. 1981, Ch. 306. ) ## 10185. If the director deems the acceptance of the lowest responsible bid or bids is not for the best interests of the state, after stating his or her reasons for rejecting the bid or bids, the director may reject all bids and proceed by day’s labor or advertise for other bids in the manner required by this part. (Amended by Stats. 1985, Ch. 410, Sec. 1.)
  78. 10186.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 5. Award of Contracts [10180 - 10186] ( Article 5 enacted by Stats. 1981, Ch. 306. )

    Verify source ↗

    Bidders on state contracts for onsite construction-related services must certify they will not ask job applicants to disclose conviction history at the initial application stage.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 5. Award of Contracts [10180 - 10186] ( Article 5 enacted by Stats. 1981, Ch. 306. ) ## 10186. (a) This section shall be known, and may be cited, as the “Fair Chance Employment Act.” (b) Any person submitting a bid to the state on a contract involving onsite construction-related services shall certify that the person will not ask an applicant for onsite construction-related employment to disclose orally or in writing information concerning the conviction history of the applicant on or at the time of an initial employment application. (c) This section shall not apply to a position for which the person or the state is otherwise required by state or federal law to conduct a conviction history background check or to any contract position with a criminal justice agency, as that term is defined in Section 13101 of the Penal Code. (d) This section shall not apply to a person to the extent that he or she obtains workers from a hiring hall pursuant to a bona fide collective bargaining agreement. (Added by Stats. 2014, Ch. 880, Sec. 1. (AB 1650) Effective January 1, 2015.)
  79. 10187.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. )

    Verify source ↗

    Certain state agencies may use design-build for projects, but not for projects on the state highway system.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. ) ## 10187. (a) The Legislature finds and declares that the design-build method of project delivery, using a best value procurement methodology, has been authorized for various agencies that have reported benefits from such projects including reduced project costs, expedited project completion, and design features that are not achievable through the traditional design-bid-build method. (b) It is the intent of the Legislature that the following occur: (1) This article provides general authorization for certain state agencies to use design-build for projects, excluding projects on the state highway system. (2) This article shall not be deemed to provide a preference for the design-build method over other procurement methodologies. (Added by Stats. 2014, Ch. 931, Sec. 6. (SB 785) Effective January 1, 2015.)
  80. 10187.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. )

    Verify source ↗

    This section defines terms used in Article 6 for state agency design-build projects.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. ) ## 10187.5. For purposes of this article, the following definitions and the definitions in subdivision (a) of Section 13332.19 of the Government Code shall apply: (a) “Best value” means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the department and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the procuring agency, or a tradeoff between price and other specified factors. (b) “Construction subcontract” means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team. (c) “Department” means the Department of General Services, the Military Department, and the Department of Corrections and Rehabilitation. (d) “Design-build” means a project delivery process in which both the design and construction of a project are procured from a single entity. (e) “Design-build entity” means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract. (f) “Design-build team” means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all electrical, mechanical, and plumbing contractors. (g) “Director” means, with respect to procurements undertaken by the Department of General Services, the Director of General Services; with respect to procurements undertaken by the Military Department, the Adjutant General; with respect to procurements undertaken by the Department of Corrections and Rehabilitation, the secretary of that department. (Amended by Stats. 2021, Ch. 247, Sec. 2. (SB 626) Effective January 1, 2022.)
  81. 10188.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. )

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    The director may procure certain design-build contracts for public works projects over $1,000,000, after notifying the State Public Works Board, and may use low bid or best value. The article does not apply to projects on the state highway system. The director must also develop a conflict-of-interest policy for these projects.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. ) ## 10188. (a) Notwithstanding any other law, the director, following notification to the State Public Works Board, may procure design-build contracts for public works projects in excess of one million dollars ($1,000,000), awarding the contract using either the low bid or best value, provided that this article shall not apply to any projects on the state highway system. (b) The director shall develop guidelines for a standard organizational conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity, that performs services for the department relating to the solicitation of a design-build project, to submit a proposal as a design-build entity, or to join a design-build team. This conflict-of-interest policy shall apply to each department entering into design-build contracts authorized under this article. (Added by Stats. 2014, Ch. 931, Sec. 6. (SB 785) Effective January 1, 2015.)
  82. 10190.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. )

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    The director must notify the State Public Works Board about the method for selecting the design-build entity before advertising the project.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. ) ## 10190. The director shall notify the State Public Works Board regarding the method to be used for selecting the design-build entity, prior to advertising the design-build project. (Amended by Stats. 2021, Ch. 247, Sec. 3. (SB 626) Effective January 1, 2022.)
  83. 10191.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. )

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    For design-build projects, the director must prepare procurement documents and issue requests for qualifications and proposals, and design-build entities must provide specified qualifications, workforce, and safety information.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. ) ## 10191. The procurement process for the design-build projects shall progress as follows: (a) (1) The director shall prepare a set of documents setting forth the scope and estimated price of the project. The documents may include, but need not be limited to, the size, type, and desired design character of the project, performance specifications covering the quality of materials, equipment, workmanship, preliminary plans or building layouts, or any other information deemed necessary to describe adequately the department’s needs. The performance specifications and any plans shall be prepared by a design professional who is duly licensed and registered in California. (2) The documents shall not include a design-build-operate contract for any project. The documents, however, may include operations during a training or transition period but shall not include long-term operations for any project. (b) The director shall prepare and issue a request for qualifications in order to prequalify or short-list the design-build entities whose proposals shall be evaluated for final selection. The request for qualifications shall include, but need not be limited to, the following elements: (1) Identification of the basic scope and needs of the project or contract, the expected cost range, the methodology that will be used by the department to evaluate proposals, the procedure for final selection of the design-build entity, and any other information deemed necessary by the director to inform interested parties of the contracting opportunity. (2) Significant factors that the department reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other nonprice-related factors. (3) A standard template request for statements of qualifications prepared by the department. In preparing the standard template, the department may consult with the construction industry, the building trades and surety industry, and other agencies interested in using the authorization provided by this article. The template shall require the following information: (A) If the design-build entity is a privately held corporation, limited liability company, partnership, or joint venture, a listing of all of the shareholders, partners, or members known at the time of statement of qualification submission who will perform work on the project. (B) Evidence that the members of the design-build team have completed, or demonstrated the experience, competency, capability, and capacity to complete projects of similar size, scope, or complexity, and that proposed key personnel have sufficient experience and training to competently manage and complete the design and construction of the project, and a financial statement that ensures that the design-build entity has the capacity to complete the project. (C) The licenses, registration, and credentials required to design and construct the project, including, but not limited to, information on the revocation or suspension of any license, credential, or registration. (D) Evidence that establishes that the design-build entity has the capacity to obtain all required payment and performance bonding, liability insurance, and errors and omissions insurance. (E) Information concerning workers’ compensation experience history and a worker safety program. (F) If the proposed design-build entity is a corporation, limited liability company, partnership, joint venture, or other legal entity, a copy of the organizational documents or agreement committing to form the organization. (G) An acceptable safety record. A proposer’s safety record shall be deemed acceptable if its experience modification rate for the most recent three-year period is an average of 1.00 or less, and its average total recordable injury or illness rate and average lost work rate for the most recent three-year period does not exceed the applicable statistical standards for its business category or if the proposer is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code. (4) (A) The information required under this subdivision shall be certified under penalty of perjury by the design-build entity and its general partners or joint venture members. (B) Information required under this subdivision that is not otherwise a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) shall not be open to public inspection. (c) (1) A design-build entity shall not be prequalified or short-listed unless the entity provides an enforceable commitment to the director that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1. (2) This subdivision shall not apply if any of the following requirements are met: (A) The department has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce, and the entity agrees to be bound by that project labor agreement. (B) The project or contract is being performed under the extension or renewal of a project labor agreement that was entered into by the department prior to January 1, 2017. (C) The entity has entered into a project labor agreement that will bind the entity and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce. (3) For purposes of this subdivision, “project labor agreement” has the same meaning as in paragraph (1) of subdivision (b) of Section 2500. (d) Based on the documents prepared as described in subdivision (a), the director shall prepare a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the department. The request for proposals shall include, but need not be limited to, the following elements: (1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the department to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the department to inform interested parties of the contracting opportunity. (2) Significant factors that the department reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all nonprice-related factors. (3) The relative importance or the weight assigned to each of the factors identified in the request for proposals. (4) Where a best value selection method is used, the department may reserve the right to request proposal revisions and hold discussions and negotiations with responsive proposers, in which case the department shall so specify in the request for proposals and shall publish separately or incorporate into the request for proposals applicable procedures to be observed by the department to ensure that any discussions or negotiations are conducted in good faith. (e) For those projects utilizing low bid as the final selection method, the competitive bidding process shall result in lump-sum bids by the prequalified or short-listed design-build entities, and awards shall be made to the design-build entity that is the lowest responsible bidder. (f) For those projects utilizing best value as a selection method, the design-build competition shall progress as follows: (1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the department: (A) Price, unless a stipulated sum is specified. (B) Technical design and construction expertise. (C) Life-cycle costs over 15 or more years. (2) Pursuant to subdivision (d), the department may hold discussions or negotiations with responsive proposers using the process articulated in the department’s request for proposals. (3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked. (4) The award of the contract shall be made to the responsible design-build entity whose proposal is determined by the director to have offered the best value to the public. (5) Notwithstanding any other provision of this code, upon issuance of a contract award, the director shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award. (6) The statement regarding the director’s contract award, described in paragraph (5), and the contract file shall provide sufficient information to satisfy an external audit. (Amended by Stats. 2021, Ch. 615, Sec. 356. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
  84. 10192.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. )

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    A design-build entity must provide payment and performance bonds, the contract must require errors and omissions insurance, and the department must create a standard bond form.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. ) ## 10192. (a) The design-build entity shall provide payment and performance bonds for the project in the form and in the amount required by the director, and issued by a California admitted surety. The amount of the payment bond shall not be less than the amount of the performance bond. (b) The design-build contract shall require errors and omissions insurance coverage for the design elements of the project. (c) The department shall develop a standard form of payment and performance bond for its design-build projects. (Added by Stats. 2014, Ch. 931, Sec. 6. (SB 785) Effective January 1, 2015.)
  85. 10193.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. )

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    This section lets the department require certain subcontractors to be named in design-build proposals and sets rules for awarding larger construction subcontracts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. ) ## 10193. (a) The department, in each design-build request for proposals, may identify specific types of subcontractors that must be included in the design-build entity statement of qualifications and proposal. All construction subcontractors that are identified in the proposal shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1. (b) Following award of the design-build contract, the design-build entity shall proceed as follows in awarding construction subcontracts with a value exceeding one-half of 1 percent of the contract price allocable to construction work: (1) Provide public notice of availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the department, including a fixed date and time on which qualifications statements, bids, or proposals will be due. (2) Establish reasonable qualification criteria and standards. (3) Award the subcontract either on a best value basis or to the lowest responsible bidder. The process may include prequalification or short-listing. The foregoing process does not apply to construction subcontractors listed in the original proposal. Subcontractors awarded construction subcontracts under this subdivision shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1. (Added by Stats. 2014, Ch. 931, Sec. 6. (SB 785) Effective January 1, 2015.)
  86. 10194.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. )

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    This section limits how much retention the department may withhold on certain design-build projects, and it also limits retention withholding in related subcontracting contracts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. ) ## 10194. (a) If the department elects to award a project pursuant to this article, retention proceeds withheld by the department from the design-build entity shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids. (b) In a contract between the design-build entity and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld may not exceed the percentage specified in the contract between the department and the design-build entity. If the design-build entity provides written notice to any subcontractor that is not a member of the design-build entity, prior to or at the time the bid is requested, that a bond may be required and the subcontractor subsequently is unable or refuses to furnish a bond to the design-build entity, then the design-build entity may withhold retention proceeds in excess of the percentage specified in the contract between the department and the design-build entity from any payment made by the design-build entity to the subcontractor. (Added by Stats. 2014, Ch. 931, Sec. 6. (SB 785) Effective January 1, 2015.)
  87. 10195.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. )

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    This article does not change any rights or remedies otherwise available at law.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6. State Agency Design-Build Projects [10187 - 10195] ( Article 6 added by Stats. 2014, Ch. 931, Sec. 6. ) ## 10195. Nothing in this article affects, expands, alters, or limits any rights or remedies otherwise available at law. (Added by Stats. 2014, Ch. 931, Sec. 6. (SB 785) Effective January 1, 2015.)
  88. 10198.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. )

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    This section defines terms used in the progressive design-build contracting article.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. ) ## 10198. For purposes of this article, the following definitions shall apply: (a) “Best value” means a value determined by evaluation of objective criteria that relate to demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Other factors such as price, features, functions, and life-cycle costs may be considered. If the qualifications-based selection process includes estimates of cost as a factor, a best value determination may involve the selection of the lowest cost proposal meeting the interests of the department and meeting the objectives of the project, or a tradeoff between price and other specified factors. (b) “Construction subcontract” means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team. (c) “Department” means the Department of General Services. (d) “Design-build entity” means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract. (e) “Design-build project” means a capital outlay project using the progressive design-build construction procurement process described in this article. (f) “Design-build team” means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all electrical, mechanical, and plumbing contractors. (g) “Director” means the Director of General Services or their designee. (h) “Guaranteed maximum price” means the maximum payment amount agreed upon by the department and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project. (i) “Progressive design-build” means a project delivery process in which both the design and construction of a project are procured from a single entity that is selected through a qualifications-based selection at the earliest feasible stage of the project. (j) “Qualifications-based selection” means the process by which the department solicits for services from the design-build entities. (Added by Stats. 2021, Ch. 77, Sec. 26. (AB 137) Effective July 16, 2021.)
  89. 10198.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. )

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    The director may procure progressive design-build contracts, but only within a limit of three capital outlay projects. The director must also develop guidelines for a standard conflict-of-interest policy that applies to departments entering these contracts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. ) ## 10198.1. (a) (1) Notwithstanding any other law, and subject to the limitation of paragraph (2), the director may procure progressive design-build contracts. (2) The authority under this article shall apply to no more than three capital outlay projects, which shall be determined jointly by the department and the Department of Finance. (b) The director shall develop guidelines for a standard organizational conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity that performs services for the department relating to the solicitation of a design-build project, to submit a proposal as a design-build entity, or to join a design-build team. This conflict-of-interest policy shall apply to each department entering into design-build contracts authorized under this article. (Added by Stats. 2021, Ch. 77, Sec. 26. (AB 137) Effective July 16, 2021.)
  90. 10198.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. )

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    For progressive design-build projects, the department must issue a request for qualifications, review submissions, and publicly announce the award; a design-build entity cannot be evaluated unless it gives an enforceable skilled-workforce commitment, subject to listed project-labor-agreement exceptions.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. ) ## 10198.2. The procurement process for progressive design-build projects shall progress as follows: (a) The department shall prepare and issue a request for qualifications in order to select a design-build entity to execute the project. The request for qualifications shall include, but is not limited to, the following elements: (1) Documentation of the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the department’s needs, including the expected cost range, the methodology that will be used by the department to evaluate the design-build entity’s qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the department to inform interested parties of the contracting opportunity. (2) Significant factors that the department reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other nonprice-related factors. The department may require that a cost estimate, including the detailed basis for the estimate, be included in the design-build entities’ responses and consider those costs in evaluating the statements of qualifications. (3) The relative importance or the weight assigned to each of the factors identified in the request for qualifications. (4) A request for statements of qualifications with a template for the statement that is prepared by the department. The department shall require all of the following information in the statement and indicate, in the template, that the following information is required: (A) If the design-build entity is a privately held corporation, limited liability company, partnership, or joint venture, a listing of all of the entity’s shareholders, partners, or members known at the time of the statement of qualification submission who will perform work on the project. (B) Evidence that the members of the design-build team have completed, or have demonstrated the experience, competency, capability, and capacity to complete, projects of similar size, scope, or complexity, and that proposed key personnel have sufficient experience and training to competently manage and complete the design and construction of the project, and a financial statement that ensures that the design-build entity has the capacity to complete the project. (C) The licenses, registration, and credentials required to design and construct the project, including, but not limited to, information on the revocation or suspension of any license, credential, or registration. (D) Evidence that establishes that the design-build entity has the capacity to obtain all required payment and performance bonding, liability insurance, and errors and omissions insurance. (E) Information concerning workers’ compensation experience history and a worker safety program. (F) If the proposed design-build entity is a corporation, limited liability company, partnership, joint venture, or other legal entity, a copy of the organizational documents or agreement committing to form the organization. (G) An acceptable safety record. A proposer’s safety record shall be deemed acceptable if its experience modification rate for the most recent three-year period is an average of 1.00 or less, and its average total recordable injury or illness rate and average lost work rate for the most recent three-year period does not exceed the applicable statistical standards for its business category or if the proposer is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code. (5) The information required under this subdivision shall be certified under penalty of perjury by the design-build entity and its general partners or joint venture members. (b) (1) A design-build entity shall not be evaluated for selection unless the entity provides an enforceable commitment to the director that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1. (2) This subdivision shall not apply if one or more of the following requirements are met: (A) The department has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce, and the entity agrees to be bound by that project labor agreement. (B) The project or contract is being performed under the extension or renewal of a project labor agreement that was entered into by the department prior to January 1, 2022. (C) The entity has entered into a project labor agreement that will bind the entity and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce. (3) For purposes of this subdivision, “project labor agreement” has meaning provided in paragraph (1) of subdivision (b) of Section 2500. (c) At the close of the solicitation period, the department shall review the submissions. The department may evaluate submissions based solely upon the information provided in each design-build entities’ statement of qualifications. The department may also interview some or all of the design-build entities to further evaluate their qualifications for the project. (d) Notwithstanding any other provision of this code, upon issuance of a contract award, the department shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award. The statement regarding the department’s contract award and the contract file shall provide sufficient information to satisfy an external audit. (Added by Stats. 2021, Ch. 77, Sec. 26. (AB 137) Effective July 16, 2021.)
  91. 10198.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. )

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    Design-build entities must provide required payment and performance bonds, with the payment bond at least as large as the performance bond, and the contract must require errors and omissions insurance.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. ) ## 10198.3. (a) The design-build entity shall provide payment and performance bonds for the project in the form and in the amount required by the director, and issued by a California admitted surety. The amount of the payment bond shall not be less than the amount of the performance bond. (b) The design-build contract shall require errors and omissions insurance coverage for the design elements of the project. (c) The department shall develop a standard form of payment and performance bond for its design-build projects. (Added by Stats. 2021, Ch. 77, Sec. 26. (AB 137) Effective July 16, 2021.)
  92. 10198.4.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. )

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    The department may contract with a selected design-build entity, direct early design work, amend the contract after a guaranteed maximum price is agreed, and either solicit new proposals or award completion work on a best value basis if agreement is not reached.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. ) ## 10198.4. (a) After selecting a design-build entity based upon qualifications, the department may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project. (b) (1) Subject to Section 13332.19 of the Government Code, upon agreement of the guaranteed maximum price for the project, the department, at its sole and absolute discretion, may amend its contract to direct the design-build entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities. (2) If the cost for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the project exceed the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the cost for these activities are less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the cost and the guaranteed maximum price. These amounts shall revert to the fund from which the appropriation was made. (c) If the department and the design-build entity do not reach agreement on a guaranteed maximum price, or the department otherwise elects not to amend the design-build entity’s contract to complete the remaining work, the department may solicit proposals to complete the project from firms that submitted statements of qualifications pursuant to Section 10198.2. The department may also, upon written determination that it is in the best interest of the state to do so, formally solicit proposals from other design-build entities. Subject to Section 13332.19 of the Government Code, contract award shall be made on a best value basis. (Added by Stats. 2021, Ch. 77, Sec. 26. (AB 137) Effective July 16, 2021.)
  93. 10198.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. )

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    The department may name subcontractor types in a design-build request for qualifications, and the design-build entity must follow specified procedures when awarding certain construction subcontracts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. ) ## 10198.5. (a) The department, in each design-build request for qualifications, may identify specific types of subcontractors that shall be included in the design-build entity’s statement of qualifications. All construction subcontractors that are identified in the statement of qualifications shall be afforded the protections of Chapter 4 (commencing with Section 4100) of Part 1. (b) Following award of the design-build contract, except for those construction subcontractors listed in the statement of qualifications, the design-build entity shall proceed as listed in this subdivision in awarding construction subcontracts with a value exceeding one-half of 1 percent of the contract price allocable to construction work. (1) Provide public notice of availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the department, including a fixed date and time on which qualifications statements, bids, or proposals will be due. (2) Establish reasonable qualification criteria and standards. (3) Award the subcontract either on a best value basis or to the lowest responsible bidder. The process may include prequalification or short-listing. (c) Subcontractors awarded construction subcontracts under this subdivision shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1. (Added by Stats. 2021, Ch. 77, Sec. 26. (AB 137) Effective July 16, 2021.)
  94. 10198.6.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. )

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    This section limits how much retention the department may withhold on progressive design-build projects and lets a design-build entity withhold more from a subcontractor in limited bond-related situations.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. ) ## 10198.6. (a) If the department elects to award a project pursuant to this article, retention proceeds withheld by the department from the design-build entity shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation. Work performed to establish the guaranteed maximum price shall not be subject to retention. (b) In a contract between the design-build entity and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld shall not exceed the percentage specified in the contract between the department and the design-build entity. If the design-build entity provides written notice to any subcontractor that is not a member of the design-build entity, before or at the time the bid is requested, that a bond may be required, and the subcontractor subsequently is unable or refuses to furnish a bond to the design-build entity, then the design-build entity may withhold retention proceeds in excess of the percentage specified in the contract between the department and the design-build entity from any payment made by the design-build entity to the subcontractor. (Added by Stats. 2021, Ch. 77, Sec. 26. (AB 137) Effective July 16, 2021.)
  95. 10198.7.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. )

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    This article does not change any rights or remedies otherwise available at law.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. ) ## 10198.7. Nothing in this article affects, expands, alters, or limits any rights or remedies otherwise available at law. (Added by Stats. 2021, Ch. 77, Sec. 26. (AB 137) Effective July 16, 2021.)
  96. 10198.8.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. )

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    The department must submit a report to the Joint Legislative Budget Committee by January 1, 2026 about certain progressive design-build public works projects.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5. Progressive Design-Build Contracting [10198 - 10198.8] ( Article 6.5 added by Stats. 2021, Ch. 77, Sec. 26. ) ## 10198.8. (a) The department shall submit to the Joint Legislative Budget Committee, on or before January 1, 2026, a report containing a description of each public works project procured by the department through the progressive design-build process described in this article that is completed after January 1, 2022, and before December 1, 2025. (b) The report described in subdivision (a) shall include, but is not limited to, all of the following information: (1) The type of project. (2) The gross square footage of the project. (3) The design-build entity that was awarded the project. (4) The estimated and actual project costs. (5) An assessment of the selection process and criteria required by this article. (6) An assessment of the effects of the progressive design-build process described in this article on cost and schedule for the project. (7) The number of specialty subcontractors listed by construction trade type, on each project, that provided design services, but did not meet the target price for their scope of work and therefore did not perform construction services on that project. (8) Whether or not any portion of a design prepared by the specialty subcontractor that did not perform the construction work for that design was used by the department. (9) In instances where the department determined that the guaranteed maximum price of any subcontract exceeded the anticipated target price for that portion of the project, which subcontracts were impacted and on what basis the department determined what the anticipated target price was. (10) The number of specialty subcontractors listed by construction trade type, on each project, that meet the definition of a small business under subparagraphs (A) and (B) of paragraph (1) of subdivision (d) of Section 14837 of the Government Code. (11) The number of specialty subcontractors listed by construction trade type, on each project, that meet the definition of a microbusiness under paragraph (2) of subdivision (d) of Section 14837 of the Government Code. (c) The report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code. (Added by Stats. 2021, Ch. 77, Sec. 26. (AB 137) Effective July 16, 2021.)
  97. 10199.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5.1. San Quentin Progressive Design-Build Contracting [10199 - 10199.6] ( Article 6.5.1 added by Stats. 2023, Ch. 47, Sec. 25. )

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    This section defines terms used in the San Quentin progressive design-build contracting article.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5.1. San Quentin Progressive Design-Build Contracting [10199 - 10199.6] ( Article 6.5.1 added by Stats. 2023, Ch. 47, Sec. 25. ) ## 10199. For purposes of this article, the following definitions apply: (a) “Best value” means a value determined by evaluation of objective criteria that may include, but are not limited to, cost factors, price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the department and meeting the objectives of the project, or a tradeoff between cost and other specified factors. (b) “Construction subcontract” means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team. (c) “Department” means the Department of Corrections and Rehabilitation. (d) “Design-build entity” means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract. (e) “Design-build project” means the San Quentin Rehabilitation Center, San Quentin: Demolition of Building 38 and Construction of New Educational and Vocational Center project authorized in the 2023 Budget Act, which includes the demolition of Building 38 and the design and construction of a new educational and vocational center, using the progressive design-build construction procurement process described in this article. (f) “Design-build team” means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all civil, geotechnical, electrical, mechanical, and plumbing contractors. (g) “Secretary” means the Secretary of the Department of Corrections and Rehabilitation or their designee. (h) “Guaranteed maximum price” means the maximum payment amount agreed upon by the department and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the demolition of Building 38 or the remainder of the design-build project. (i) “Progressive design-build” means a project delivery process in which the design, preconstruction services, and construction of a project are procured, in one or more stages, from a single design-build entity that is selected through a qualifications-based selection at the earliest feasible stage of the project. However, the progressive design-build model offers flexibility to retain a different entity for the construction phase of the project, should the parties be unable to agree, after a specified portion of the design phase is complete, on a guaranteed maximum price for the construction phase. (j) “Qualifications-based selection” means the process by which the department solicits for services from the design-build entities and that best value is the basis of the award. (Added by Stats. 2023, Ch. 47, Sec. 25. (AB 134) Effective July 10, 2023.)
  98. 10199.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5.1. San Quentin Progressive Design-Build Contracting [10199 - 10199.6] ( Article 6.5.1 added by Stats. 2023, Ch. 47, Sec. 25. )

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    The secretary may procure progressive design-build contracts for the project and must develop conflict-of-interest guidelines for related service providers.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5.1. San Quentin Progressive Design-Build Contracting [10199 - 10199.6] ( Article 6.5.1 added by Stats. 2023, Ch. 47, Sec. 25. ) ## 10199.1. (a) Notwithstanding any other law, the secretary may procure progressive design-build contracts for the design-build project. (b) The secretary shall develop guidelines for a standard organizational conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity that performs services for the department relating to the solicitation of a design-build project, to submit a statement of qualifications, a proposal, or both as a design-build entity, or to join a design-build team. (Added by Stats. 2023, Ch. 47, Sec. 25. (AB 134) Effective July 10, 2023.)
  99. 10199.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5.1. San Quentin Progressive Design-Build Contracting [10199 - 10199.6] ( Article 6.5.1 added by Stats. 2023, Ch. 47, Sec. 25. )

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    For progressive design-build projects, the department must follow a specified procurement process, including issuing a request for qualifications and later reviewing and announcing awards.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5.1. San Quentin Progressive Design-Build Contracting [10199 - 10199.6] ( Article 6.5.1 added by Stats. 2023, Ch. 47, Sec. 25. ) ## 10199.2. The procurement process for a progressive design-build project shall progress as follows: (a) The department shall determine the scope and estimated price of the design-build project. The determination may include, but need not be limited to, the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the department’s needs. (b) The department shall prepare and issue a request for qualifications. The request for qualifications shall include, but is not limited to, all of the following elements: (1) Identification of the basic scope and needs of the design-build project or contract, the expected cost range, the methodology that will be used by the department to evaluate qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the department to inform interested parties of the contracting opportunity. (2) Significant factors that the department reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other non-price-related factors. The department may require that a cost estimate, including the detailed basis for the estimate, be included in the design-build entities’ responses and consider those costs in evaluating the statements of qualifications. (3) The relative importance or the weight assigned to each of the factors identified in the request for qualifications. (4) A request for statements of qualifications with a template for the statement that is prepared by the department. The department shall require all of the following information in the statement and indicate, in the template, that all of the following information is required: (A) If the design-build entity is a privately held corporation, limited liability company, partnership, or joint venture, a listing of all of the entity’s shareholders, partners, or members who will perform work on the project that are known at the time of the statement of qualification is submitted. (B) Evidence that the members of the design-build team have completed, or have demonstrated the experience, competency, capability, and capacity to complete, projects of similar size, scope, or complexity, and that proposed key personnel have sufficient experience and training to competently manage and complete the design and construction of the design-build project, and a financial statement that ensures that the design-build entity has the capacity to complete the project. (C) The licenses, registration, and credentials required to design and construct the design-build project, including, but not limited to, information on the revocation or suspension of any license, credential, or registration. (D) Evidence that establishes that the design-build entity has the capacity to obtain all required payment and performance bonding, liability insurance, and errors and omissions insurance. (E) Information concerning workers’ compensation experience history and a worker safety program. (F) If the proposed design-build entity is a corporation, limited liability company, partnership, joint venture, or other legal entity, a copy of the organizational documents or agreement committing to form the organization. (G) An acceptable safety record. A proposer’s safety record shall be deemed acceptable if its experience modification rate for the most recent three-year period is an average of 1.00 or less, and its average total recordable injury or illness rate and average lost work rate for the most recent three-year period does not exceed the applicable statistical standards for its business category or if the proposer is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code. (H) A full disclosure regarding each of the following, if applicable: (i) Any serious or willful violation of Part 1 (commencing with Section 6300) of Division 5 of the Labor Code or the federal Occupational Safety and Health Act of 1970 (Public Law 91-596), settled against any member of the design-build entity. (ii) Any debarment, disqualification, or removal from a federal, state, or local government public works project. (iii) Any instance in which the design-build entity, or its owners, officers, or managing employees, submitted a bid on a public works project and were found to be nonresponsive or were found by an awarding body not to be a responsible bidder. (iv) Any instance in which the design-build entity, or its owners, officers, or managing employees, defaulted on a construction contract. (v) Any violations of the Contractors State License Law, as described in Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, including alleged violations of federal or state law regarding the payment of wages, benefits, apprenticeship requirements, or personal income tax withholding, or Federal Insurance Contributions Act withholding requirements settled against any member of the design-build entity. (vi) Any bankruptcy or receivership of any member of the design-build entity, including, but not limited to, information concerning any work completed by a surety. (vii) Any settled adverse claims, disputes, or lawsuits between the owner of a public works project and any member of the design-build entity during the five years preceding submission of a bid under this article in which the claim, settlement, or judgment exceeded fifty thousand dollars ($50,000). Information shall also be provided concerning any work completed by a surety during this five-year period. (5) The information provided by a design-build entity in response to a request for qualifications shall be certified under penalty of perjury by the design-build entity and its general partners or joint venture members. (c) (1) Following the deadline for submission of a statement of qualifications, the department shall review the submissions. The department may evaluate submissions based solely upon the information provided in each design-build entity’s statement of qualifications. The department may also interview some or all of the design-build entities to further evaluate their qualifications for the design-build project. The department may also hold discussions or negotiations with design-build entities using the process described in the department’s request for qualifications. (2) For each request for qualification, the department shall generate a final list of qualified design-build entities that participated in the request for qualifications prior to entering into negotiations for the contract or contracts to which the request for qualifications applies. (3) If submissions in response to a request for qualifications provide sufficient information to determine which qualified design-build entity has offered the best value to the public, the department may enter into negotiations with the entity concerning contract terms and award a contract or contracts for design and preconstruction services for the demolition of Building 38 and the remainder of the design-build project to that entity. Such contract or contracts shall provide for the subsequent negotiation of terms governing the construction phase of the demolition of Building 38 and the remainder of the design-build project. If the department is unable to negotiate a satisfactory contract or contracts with that entity for design and preconstruction services, the department may undertake negotiations with another qualified design-build entity that participated in the request for qualifications process. (4) If additional information is necessary to determine which qualified design-build entity offers the best value to the public, the department may prepare a further request for proposals, based on the documents prepared as described in subdivision (a), that invites qualified design-build entities identified pursuant to paragraph (2) to submit competitive sealed proposals in the manner prescribed by the department. (d) Notwithstanding any other provision of this code, upon issuance of a contract award, the department shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award. The statement regarding the contract award and the contract file shall provide sufficient information to satisfy an external audit. (Added by Stats. 2023, Ch. 47, Sec. 25. (AB 134) Effective July 10, 2023.)
  100. 10199.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5.1. San Quentin Progressive Design-Build Contracting [10199 - 10199.6] ( Article 6.5.1 added by Stats. 2023, Ch. 47, Sec. 25. )

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    The design-build entity must provide payment and performance bonds, and the design-build contract must require errors and omissions insurance coverage.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5.1. San Quentin Progressive Design-Build Contracting [10199 - 10199.6] ( Article 6.5.1 added by Stats. 2023, Ch. 47, Sec. 25. ) ## 10199.3. (a) The design-build entity shall provide payment and performance bonds for the design-build project in the form and in the amount required by the secretary, which are issued by a California admitted surety. The amount of the payment bond shall not be less than the amount of the performance bond. (b) The design-build contract shall require errors and omissions insurance coverage for the design elements of the design-build project. (c) The department shall develop a standard form of payment and performance bond for its design-build project. (Added by Stats. 2023, Ch. 47, Sec. 25. (AB 134) Effective July 10, 2023.)
  101. 10199.4.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5.1. San Quentin Progressive Design-Build Contracting [10199 - 10199.6] ( Article 6.5.1 added by Stats. 2023, Ch. 47, Sec. 25. )

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    The department may use design-build contracting steps for this project, including amending or replacing contracts, adding funds up to the guaranteed maximum price, and soliciting new proposals in some cases.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5.1. San Quentin Progressive Design-Build Contracting [10199 - 10199.6] ( Article 6.5.1 added by Stats. 2023, Ch. 47, Sec. 25. ) ## 10199.4. (a) After selecting a design-build entity for the design and preconstruction phase, the department may enter into a contract or contracts and direct the design-build entity to begin design and preconstruction activities sufficient to establish a separate guaranteed maximum price for the demolition of Building 38 and the remainder of the design-build project. (b) Subject to Section 13332.19 of the Government Code, upon agreement of the guaranteed maximum price for the demolition of Building 38 or the remainder of the design-build project, the department, at its sole and absolute discretion, may amend its contract or contracts with the design-build entity or enter into a new contract or contracts, and direct the design-build entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the demolition of Building 38 or the remainder of the design-build project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities. Any amendment of the existing contract or contracts or entering into a new contract or contracts with the design-build entity shall not require any additional competitive process. This section does not require the department to amend an existing contract or enter into a new contract for remaining design, preconstruction, or construction activities. (c) If the cost for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the design-build project exceeds the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the cost for these activities is less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the cost and the guaranteed maximum price. These amounts shall revert to the fund from which the appropriation was made. (d) If the department and the design-build entity do not reach an agreement on a guaranteed maximum price for the demolition of Building 38 or the remainder of the design-build project, or the department otherwise elects not to amend the design-build entity’s contract or contracts to complete the demolition of Building 38 or the remainder of the design-build project, the department may solicit proposals to complete the demolition of Building 38 or the remainder of the design-build project from firms that submitted statements of qualifications pursuant to Section 10199.2. The department may also, upon written determination that it is in the best interest of the state to do so, formally solicit proposals from other design-build entities to complete the demolition of Building 38 or the remainder of the design-build project or complete the design-build project using other delivery methods. Subject to Section 13332.19 of the Government Code, a contract award shall be made on a best value basis. (Added by Stats. 2023, Ch. 47, Sec. 25. (AB 134) Effective July 10, 2023.)
  102. 10199.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5.1. San Quentin Progressive Design-Build Contracting [10199 - 10199.6] ( Article 6.5.1 added by Stats. 2023, Ch. 47, Sec. 25. )

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    The department may specify subcontractor types in the RFQ or RFP, and the design-build entity must follow notice, qualification, and award procedures for certain covered construction subcontracts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5.1. San Quentin Progressive Design-Build Contracting [10199 - 10199.6] ( Article 6.5.1 added by Stats. 2023, Ch. 47, Sec. 25. ) ## 10199.5. (a) The department, in the request for qualifications or request for proposals, may identify specific types of subcontractors that are required to be included in the design-build entity’s statement of qualifications. All construction subcontractors that are identified in the statement of qualifications shall be afforded the protections of Chapter 4 (commencing with Section 4100) of Part 1. (b) Following award of the design-build contract, except for those construction subcontractors listed in the statement of qualifications or proposal, the design-build entity shall proceed as follows in awarding construction subcontracts with a value exceeding one-half of 1 percent of the contract price allocable to construction work. (1) Provide public notice of availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the department, including a fixed date and time on which qualifications statements, bids, or proposals will be due. (2) Establish reasonable qualification criteria and standards. (3) Award the subcontract either on a best value basis or to the lowest responsible bidder. The process may include prequalification or short-listing. (c) Subcontractors awarded construction subcontracts under this subdivision shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1. (Added by Stats. 2023, Ch. 47, Sec. 25. (AB 134) Effective July 10, 2023.)
  103. 10199.6.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5.1. San Quentin Progressive Design-Build Contracting [10199 - 10199.6] ( Article 6.5.1 added by Stats. 2023, Ch. 47, Sec. 25. )

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    This article does not change any rights or remedies otherwise available at law.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.5.1. San Quentin Progressive Design-Build Contracting [10199 - 10199.6] ( Article 6.5.1 added by Stats. 2023, Ch. 47, Sec. 25. ) ## 10199.6. This article does not affect, expand, alter, or limit any rights or remedies otherwise available at law. (Added by Stats. 2023, Ch. 47, Sec. 25. (AB 134) Effective July 10, 2023.)
  104. 102.

    ## Public Contract Code - PCC ## DIVISION 1. PURPOSE AND PRELIMINARY MATTERS [100 - 102] ( Division 1 added by Stats. 1984, Ch. 42, Sec. 1. )

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    The provision states that California public contract law should be uniform, to the maximum extent possible, to encourage competition for public contracts and help public officials administer public contracting efficiently.

    ## Public Contract Code - PCC ## DIVISION 1. PURPOSE AND PRELIMINARY MATTERS [100 - 102] ( Division 1 added by Stats. 1984, Ch. 42, Sec. 1. ) ## 102. To encourage competition for public contracts and to aid public officials in the efficient administration of public contracting, to the maximum extent possible, for similar work performed for similar agencies, California’s public contract law should be uniform. (Added by Stats. 1984, Ch. 42, Sec. 1.)
  105. 10215.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. )

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    This section defines terms used in the article on progressive design-build projects.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. ) ## 10215. For purposes of this article, the following definitions apply: (a) “Best value” means a value determined by evaluation of objective criteria that may include, but are not limited to, cost factors, price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the department and meeting the objectives of the project, or a tradeoff between cost and other specified factors. (b) “Construction subcontract” means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team. (c) “Department” means any department of the State of California authorized pursuant to Section 10215.1 to utilize progressive design-build contracting. (d) “Design-build entity” means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a progressive design-build contract. (e) “Design-build project” means a capital project using the progressive design-build construction procurement process described in this article. (f) “Design-build team” means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all civil, geotechnical, electrical, mechanical, and plumbing contractors. (g) “Director” means the director of any department of the State of California authorized pursuant to Section 10215.1 to utilize progressive design-build contracting, or their designee. (h) “Guaranteed maximum price” means the maximum payment amount agreed upon by the department and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project. (i) “Progressive design-build” means a project delivery process in which the design, preconstruction services, and construction of a project are procured, in one or more stages, from a single design-build entity that is selected through a qualifications-based selection at the earliest feasible stage of the project. However, the progressive design-build model offers flexibility to retain a different entity for the construction phase of the project, should the parties be unable to agree, after a specified portion of the design phase is complete, on a guaranteed maximum price for the construction phase. (j) “Qualifications-based selection” means the process by which the department solicits for services from the design-build entities and that best value is the basis of the award. (Added by Stats. 2023, Ch. 58, Sec. 3. (SB 146) Effective July 10, 2023. Repealed as of December 31, 2033, pursuant to Section 10215.8.)
  106. 10215.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. )

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    Two departments may use progressive design-build contracts for public works projects over $25 million, with limits and exclusions.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. ) ## 10215.1. (a) (1) Notwithstanding any other law, both of the following departments may procure progressive design-build contracts for public works projects for which the estimated price, as determined pursuant to subdivision (a) of Section 10215.2, exceeds twenty five million dollars ($25,000,000): (A) The Department of Water Resources as established in Section 120 of the Water Code. (B) The Department of Transportation as established under Part 5 (commencing with Section 14000) of Division 3 of Title 2 of the Government Code. (2) This subdivision does not authorize a design-build-operate contract for any project. A contract pursuant to this article may provide for operations during a training or transitional period, but shall not include long-term operations for any design-build project. (3) The progressive design-build authorization in this subdivision shall not include the authority to perform construction inspection services for projects on or interfacing with the state highway system, which shall be performed by the Department of Transportation consistent with Section 91.2 of the Streets and Highways Code. (4) The progressive design-build authorization in this subdivision shall not include the authority to perform construction inspection services for projects on the State Water Project or any other state-owned or -operated water resources facility, which shall be performed by the Department of Water Resources consistent with Section 148 of the Water Code. (5) A department described in paragraph (1) shall be limited to utilizing progressive-design build contracts for no more than eight design-build projects. (b) The director of each department identified in subdivision (a) shall develop guidelines for a standard departmental conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity that performs services for the department relating to the solicitation of a progressive design-build project, to submit a statement of qualifications, a proposal, or both as a design-build entity, or to join a design-build team. (c) This article does not apply to procurement by the Department of Water Resources for the design or construction of through-Delta conveyance facilities of the Sacramento-San Joaquin Delta or seawater desalination projects. (Added by Stats. 2023, Ch. 58, Sec. 3. (SB 146) Effective July 10, 2023. Repealed as of December 31, 2033, pursuant to Section 10215.8.)
  107. 10215.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. )

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    This section sets out how the department must run the procurement process for progressive design-build projects, including issuing a request for qualifications, reviewing submissions, and announcing awards.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. ) ## 10215.2. The procurement process for progressive design-build projects shall progress as follows: (a) The department shall determine the scope and estimated price of the design-build project. The determination may include, but need not be limited to, the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the department’s needs. (b) The department shall prepare and issue a request for qualifications. The request for qualifications shall include, but is not limited to, all of the following elements: (1) Identification of the basic scope and needs of the design-build project or contract, the expected cost range, the methodology that will be used by the department to evaluate qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the director to inform interested parties of the contracting opportunity. (2) Significant factors that the department reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other nonprice-related factors. The department may require that a cost estimate, including the detailed basis for the estimate, be included in the design-build entities’ responses and consider those costs in evaluating the statements of qualifications. (3) The relative importance or the weight assigned to each of the factors identified in the request for qualifications. (4) A request for a statement of qualifications with a template for the statement that is prepared by the department. The department shall require all of the following information in the statement and indicate, in the template, that all of the following information is required: (A) If the design-build entity is a privately held corporation, limited liability company, partnership, or joint venture, a listing of all of the design-build entity’s shareholders, partners, or members who, at the time the statement of qualification is submitted, the design-build entity knows will perform work on the design-build project if the design-build entity is selected by the department. (B) Evidence that the members of the design-build team have completed, or have demonstrated the experience, competency, capability, and capacity to complete, projects of similar size, scope, or complexity, and that proposed key personnel have sufficient experience and training to competently manage and complete the design and construction of the design-build project, and a financial statement that ensures that the design-build entity has the capacity to complete the design-build project. (C) The licenses, registration, and credentials required to design and construct the design-build project, including, but not limited to, information on the revocation or suspension of any license, credential, or registration. (D) Evidence that establishes that the design-build entity has the capacity to obtain all required payment and performance bonding, liability insurance, and errors and omissions insurance. (E) Information concerning workers’ compensation experience history and a worker safety program. (F) If the proposed design-build entity is a corporation, limited liability company, partnership, joint venture, or other legal entity, a copy of the organizational documents or agreement committing to form the organization. (G) An acceptable safety record. A design-build entity’s safety record shall be deemed acceptable if its experience modification rate for the most recent three-year period is an average of 1.00 or less, and its average total recordable injury or illness rate and average lost work rate for the most recent three-year period does not exceed the applicable statistical standards for its business category or if the design-build entity is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code. (H) A full disclosure regarding each of the following, if applicable: (i) Any serious or willful violation of Part 1 (commencing with Section 6300) of Division 5 of the Labor Code or the federal Occupational Safety and Health Act of 1970 (Public Law 91-596), settled or otherwise resolved against any member of the design-build team. (ii) Any debarment, disqualification, or removal of any member of the design-build team or its owners, officers, or managing employees from a federal, state, or local government public works project. (iii) Any instance in which a member of the design-build team, or its owners, officers, or managing employees, submitted a bid on a public works project and were found to be nonresponsive or were found by an awarding body not to be a responsible bidder. (iv) Any instance in which any member of the design-build team, or its owners, officers, or managing employees, defaulted on a construction contract. (v) Any violations of the Contractors State License Law, as described in Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, by a member of the design-build team or its owners, officers, or managing employees, including alleged violations of Federal or state law regarding the payment of wages, benefits, apprenticeship requirements, or personal income tax withholding, or federal Insurance Contribution Act withholding requirements settled against any member of the design-build entity. (vi) Any bankruptcy or receivership of any member of the design-build team, including, but not limited to, information concerning any work completed by a surety. (vii) Any adverse claims, disputes, or lawsuits between the owner of a public works project and any member of the design-build team during the five years preceding submission of a bid under this article, in which the claim, settlement, or judgment exceeded fifty thousand dollars ($50,000) and was settled or otherwise resolved against the design-build entity or any member of the design-build team. Information shall also be provided concerning any work completed by a surety during this five-year period. (viii) Any adverse claims, disputes, or lawsuits between any member of the design-build team and any employee of that entity during the five years preceding submission of a bid under this article, in which the claim, settlement, or judgment exceeded fifty thousand dollars ($50,000) and was settled or otherwise resolved against the entity. (5) The information provided by a design-build entity in response to a request for qualifications shall be certified under penalty of perjury by the design-build entity and its general partners or joint venture members. (c) (1) Following the deadline for submission of a statement of qualifications, the department shall review the submissions. The department may evaluate submissions based solely upon the information provided in each design-build entity’s statement of qualifications. The department may also interview some or all of the design-build entities to further evaluate their qualifications for the design-build project. The department may also hold discussions or negotiations with design-build entities using the process described in the department’s request for qualifications. (2) For each request for qualifications, the department shall generate a final list of qualified design-build entities that participated in the request for qualifications before entering into negotiations for the contract or contracts to which the request for qualifications applies. (3) If submissions in response to a request for qualifications provide sufficient information to determine which qualified design-build entity has offered the best value to the public, the department may enter into negotiations with that entity concerning contract terms and award a contract for design and preconstruction services to that entity. Such contract shall provide for the subsequent negotiation of terms governing the construction phase of the design-build project. If the department is unable to negotiate a satisfactory contract with that entity for design and preconstruction services, the department may undertake negotiations with a separate qualified design-build entity that participated in the request for qualifications process. (4) If additional information is necessary to determine which qualified design-build entity offers the best value to the public, the department may prepare a further request for proposals, based on the documents prepared as described in subdivision (a), that invites qualified design-build entities identified pursuant to paragraph (2) to submit competitive sealed proposals in the manner prescribed by the department. (d) Notwithstanding any other provision of this code, upon issuance of a contract award, the director shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award. The statement regarding the contract award and the contract file shall provide sufficient information to satisfy an external audit. (Added by Stats. 2023, Ch. 58, Sec. 3. (SB 146) Effective July 10, 2023. Repealed as of December 31, 2033, pursuant to Section 10215.8.)
  108. 10215.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. )

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    A design-build entity must provide required payment and performance bonds, the design-build contract must require errors and omissions insurance, and the department must create a standard bond form.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. ) ## 10215.3. (a) The design-build entity shall provide payment and performance bonds for the design-build project in the form and in the amount required by the director, which are issued by a California admitted surety. The amount of the payment bond shall not be less than the amount of the performance bond. (b) The design-build contract shall require errors and omissions insurance coverage for the design elements of the design-build project. (c) The department shall develop a standard form of payment and performance bond for its design-build projects. (Added by Stats. 2023, Ch. 58, Sec. 3. (SB 146) Effective July 10, 2023. Repealed as of December 31, 2033, pursuant to Section 10215.8.)
  109. 10215.4.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. )

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    The department may contract with a selected design-build entity to start work, then later amend or replace the contract to finish the project if a guaranteed maximum price is agreed. If costs go over that price, the entity bears the excess; if costs are lower, the entity does not get the difference.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. ) ## 10215.4. (a) After selecting a design-build entity for the design and preconstruction phase, the department may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project. (b) Subject to Section 13332.19 of the Government Code, if otherwise applicable to the department, upon agreement of the guaranteed maximum price for the design-build project, the department, at its sole and absolute discretion, may amend its contract with the design-build entity, or enter into a new contract, and direct the entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the design-build project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities. Any amendment of the existing contract or a new contract with the design-build entity shall not require any additional competitive process. This section does not require the department to amend an existing contract or enter into a new contract for remaining design, preconstruction, or construction activities. (c) If the cost for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the design-build project exceeds the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the cost for these activities is less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the cost and the guaranteed maximum price. Any savings provided to the department shall revert to the fund from which the appropriation was made. (d) If the department and the design-build entity do not reach an agreement on a guaranteed maximum price or the department otherwise elects not to have the design-build entity complete some or all of the remaining work, the department may solicit proposals to complete some or all of the remaining work from firms that submitted a statement of qualifications pursuant to subdivision (b) of Section 10215.2. The department may also, upon written determination that it is in the best interest of the state to do so, formally solicit proposals from other entities to complete all or some of the remaining work, or complete the design-build project using other delivery methods. Subject to Section 13332.19 of the Government Code, if otherwise applicable to the department, any contract awarded shall be made on a best value basis. (Added by Stats. 2023, Ch. 58, Sec. 3. (SB 146) Effective July 10, 2023. Repealed as of December 31, 2033, pursuant to Section 10215.8.)
  110. 10215.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. )

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    The department may name subcontractor types in a request for qualifications or proposals, and design-build entities must follow specified subcontracting steps for certain subcontract awards. Identified subcontractors and subcontractors awarded under this subdivision get Chapter 4 protections.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. ) ## 10215.5. (a) The department, in each request for qualifications or request for proposals, may identify specific types of subcontractors that are required to be included in the design-build entity’s statement of qualifications. All construction subcontractors that are identified in the statement of qualifications shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1. (b) Following award of the design-build contract, except for those construction subcontractors listed in the statement of qualifications or proposal, the design-build entity shall proceed as follows in awarding construction subcontracts with a value exceeding one-half of 1 percent of the contract price allocable to construction work: (1) Provide public notice of availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the department, including a fixed date and time on which qualification statements, bids, or proposals will be due. (2) Establish reasonable qualification criteria and standards. (3) Award the subcontract either on a best value basis or to the lowest responsible bidder. The process may include prequalification or short-listing. (c) Subcontractors awarded construction subcontracts under this subdivision shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1. (Added by Stats. 2023, Ch. 58, Sec. 3. (SB 146) Effective July 10, 2023. Repealed as of December 31, 2033, pursuant to Section 10215.8.)
  111. 10215.6.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. )

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    Certain departments must submit a report to the Legislature by January 1, 2034 about qualifying progressive design-build projects.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. ) ## 10215.6. (a) Any department authorized by Section 10215.1 to utilize progressive design-build contracts pursuant to this article shall prepare and submit to the Legislature a report by January 1, 2034, that describes each design-build project awarded under this article that has begun construction by January 1, 2033. (b) The report described in subdivision (a) shall include relevant data including, but not limited to, all of the following information: (1) The cost of the design-build project. (2) The current status or stage of the design-build project. (3) If complete, the completion date of the design-build project. (4) If incomplete, the estimated completion date of the design-build project. (c) The report described in subdivision (a) shall also provide a comprehensive assessment on the effectiveness of the progressive design-build project delivery method relative to project cost and time savings. (d) The report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code. (Added by Stats. 2023, Ch. 58, Sec. 3. (SB 146) Effective July 10, 2023. Repealed as of December 31, 2033, pursuant to Section 10215.8.)
  112. 10215.7.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. )

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    This section says the article does not change or limit any rights or remedies already available at law.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. ) ## 10215.7. This article does not affect, expand, alter, or limit any rights or remedies otherwise available at law. (Added by Stats. 2023, Ch. 58, Sec. 3. (SB 146) Effective July 10, 2023. Repealed as of December 31, 2033, pursuant to Section 10215.8.)
  113. 10215.8.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. )

    Verify source ↗

    This article ends on December 31, 2033, when it is repealed.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 6.7. Progressive Design-Build Projects [10215 - 10215.8] ( Article 6.7 added by Stats. 2023, Ch. 58, Sec. 3. ) ## 10215.8. This article shall remain in effect only until December 31, 2033, and as of that date is repealed. The repeal of this article shall not affect the contracts entered into by the department, or the department’s authority to complete the design-build projects for which a design and preconstruction phase contract has been entered under this article, before December 31, 2033. (Added by Stats. 2023, Ch. 58, Sec. 3. (SB 146) Effective July 10, 2023. Repealed as of December 31, 2033, by its own provisions. Note: Repeal affects Article 6.7, commencing with Section 10215.)
  114. 10220.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. )

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    Contracts awarded under this part must be submitted for review, and a certified copy must be filed with the Controller.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. ) ## 10220. Every contract awarded under this part shall be submitted to the Attorney General or the attorney appointed according to law and authorized to represent the department under which it is to be performed. Such a contract is not binding on the state until the appropriate attorney finds it to be in accordance with the requirements of this chapter, and endorses such finding thereon. A certified copy of each contract shall be filed with the Controller, but the failure so to file does not invalidate it. (Enacted by Stats. 1981, Ch. 306.)
  115. 10221.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. )

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    Every contract must provide for separate performance and payment bonds filed by the contractor, made by an admitted surety insurer, and not replaced with deposits in lieu of bond, subject to department approval.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. ) ## 10221. Every contract shall provide for the filing of separate performance and payment bonds by the contractor in the form of bonds executed by an admitted surety insurer and not deposits in lieu of bond, subject to the approval of the department. (Amended by Stats. 1982, Ch. 517, Sec. 348.4.)
  116. 10222.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. )

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    Most bonds must equal at least half of the contract price, with listed exceptions. For projects over $250,000,000, the Department of Transportation may specify a payment bond amount that is the lesser of half the contract price or $500,000,000.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. ) ## 10222. (a) Each bond shall equal at least one-half of the contract price, except as otherwise provided in Section 9554 of the Civil Code, in the California Toll Bridge Authority Act (Chapter 1 (commencing with Section 30000) of Division 7 of the Streets and Highways Code), or in subdivision (b). (b) Notwithstanding subdivision (a), for projects with a contract price greater than two hundred fifty million dollars ($250,000,000), the Department of Transportation shall have the discretion to specify that the payment bond shall equal not less than one-half of the contract price or five hundred million dollars ($500,000,000), whichever is less. (Amended by Stats. 2010, Ch. 697, Sec. 45. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697.)
  117. 10223.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. )

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    A payment bond must secure payment of claims by laborers, mechanics, or materialmen working under the contract, and it must include any other provisions required by law.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. ) ## 10223. The payment bond shall secure the payment of the claims of laborers, mechanics or materialmen employed on the work under the contract and shall contain all other provisions required by law. (Enacted by Stats. 1981, Ch. 306.)
  118. 10224.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. )

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    A performance bond must guarantee that the contractor faithfully performs the contract.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. ) ## 10224. The performance bond shall guarantee the faithful performance of the contract by the contractor. (Enacted by Stats. 1981, Ch. 306.)
  119. 10225.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. )

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    The director must approve any cancellation or withdrawal of a surety from a bond before it takes effect.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. ) ## 10225. No payment shall be made upon the contract to the contractor or any assignee of the contractor until any order by the director that a sufficient surety be substituted on the bond or that a new, additional, or supplemental bond be given, is satisfied. No cancellation of or withdrawal of a surety from a bond is effective unless approved by the director. (Amended by Stats. 1982, Ch. 517, Sec. 348.5.)
  120. 10226.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. )

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    Contracts must state when the work will be finished and must require a payment to the state if completion is late. Certain public works contracts may also include a bonus for finishing early.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. ) ## 10226. Every contract shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment. (Amended by Stats. 1990, Ch. 1044, Sec. 1.5. Effective September 19, 1990.)
  121. 10227.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. )

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    Every contract must state that the department may change the plans and specifications under this part.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. ) ## 10227. Every contract shall provide that the department may make changes in the plans and specifications pursuant to this part. (Enacted by Stats. 1981, Ch. 306.)
  122. 10230.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. )

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    Contracts in scope that include disabled veteran business enterprise participation in the bid must include a clause requiring contractor compliance with the California Disabled Veteran Business Enterprise Program rules.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. ) ## 10230. Every contract subject to this part, for which disabled veteran business enterprise participation is included in the bid, shall contain a provision requiring the contractor to comply with rules, regulations, ordinances, and statutes that apply to the California Disabled Veteran Business Enterprise Program as defined in Section 999 of the Military and Veterans Code, including, but not limited to, the requirements of subdivision (d) of Section 999.5 of the Military and Veterans Code. (Added by Stats. 2019, Ch. 676, Sec. 5. (AB 230) Effective January 1, 2020.)
  123. 10231.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. )

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    Contracts covered by this part must include a term requiring each contractor to follow applicable air pollution control laws and rules.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. ) ## 10231. Every contract subject to this part shall contain a provision requiring each contractor to comply with all air pollution control rules, regulations, ordinances, and statutes which apply to any work performed pursuant to the contract, including any air pollution control rules, regulations, ordinances, and statutes specified in Section 11017 of the Government Code. (Enacted by Stats. 1981, Ch. 306.)
  124. 10232.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. )

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    A contract must include a sworn statement that the contractor has had no more than one qualifying federal contempt finding in the prior two years.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7. Contract Requirements [10220 - 10232] ( Article 7 enacted by Stats. 1981, Ch. 306. ) ## 10232. Every contract shall contain a statement by which the contractor swears under penalty of perjury that no more than one final, unappealable finding of contempt of court by a federal court has been issued against the contractor within the immediately preceding two-year period because of the contractor’s failure to comply with an order of a federal court which orders the contractor to comply with an order of the National Labor Relations Board. For purposes of this section, a finding of contempt does not include any finding which has been vacated, dismissed, or otherwise removed by the court because the contractor has complied with the order which was the basis for the finding. The state may rescind any contract in which the contractor falsely swears to the truth of the statement required by this section. (Added by Stats. 1982, Ch. 466, Sec. 89.)
  125. 10240.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. )

    Verify source ↗

    Claims arising under contracts made under this chapter must be resolved by arbitration under this chapter.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. ) ## 10240. The remedy for the resolution of claims arising under contracts made under the provisions of this chapter shall be arbitration pursuant to this chapter. (Added by Stats. 1982, Ch. 466, Sec. 90.)
  126. 10240.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. )

    Verify source ↗

    A claimant may start arbitration within 90 days after being served, in person or by mail, with the department’s final written decision on the claim.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. ) ## 10240.1. The claimant may initiate arbitration not later than 90 days after the date of service in person or by mail on the claimant of the final written decision by the department on the claim. This limitation shall not apply to any claim founded on any cost audit, latent defect, warranty, or guarantee under the contract. (Amended by Stats. 1998, Ch. 857, Sec. 8. Effective January 1, 1999.)
  127. 10240.10.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. )

    Verify source ↗

    After a claim has arisen, the contract parties may agree in writing to waive this article and have the claim litigated in a court of competent jurisdiction.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. ) ## 10240.10. Nothing in this article shall be construed as preventing the parties to the contract, after the claim has arisen, from mutually agreeing in writing to waive the provisions of this article and to have the claim litigated in a court of competent jurisdiction. (Added by Stats. 1982, Ch. 466, Sec. 90.)
  128. 10240.11.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. )

    Verify source ↗

    Arbitrations under this section generally follow Title 9 procedure, and discovery follows Section 1283.05 except subdivision (e).

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. ) ## 10240.11. Except as provided in this article and in the regulations adopted pursuant to Section 10240.5, the procedure governing the arbitrations shall be as set forth in Title 9 (commencing with Section 1280) of Part 3 of the Code of Civil Procedure. All provisions of Section 1283.05 of the Code of Civil Procedure, except subdivision (e) thereof, apply to the conduct of discovery for any arbitration hereunder. (Added by Stats. 1982, Ch. 466, Sec. 90.)
  129. 10240.12.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. )

    Verify source ↗

    A party may ask the court to confirm, correct, or vacate an arbitrator’s award, but a department needs prior written authorization from its agency secretary to seek vacatur.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. ) ## 10240.12. A party may, within the applicable time periods and upon the grounds specified in this section and in Article 1 (commencing with Section 1285) of Chapter 4 of Title 9 of Part 3 of the Code of Civil Procedure, petition the court to confirm, correct, or vacate the award rendered by the arbitrator. However, no department may petition to vacate an award without the prior written authorization of its agency secretary. Except where the parties agree not to have the arbitration decision rendered in accordance with the provisions of Section 10240.8, a court shall vacate the award, or part thereof, if it determines either that the award, or part thereof, is not supported by substantial evidence or that it is not decided under or in accordance with the laws of this state. If the award, or part thereof, is vacated on the grounds set forth in the preceding sentence or in subdivision (d) or (e) of Section 1286.2 of the Code of Civil Procedure or if the court determines that the award does not include a determination of all submitted questions necessary to determine the controversy, the court may order a rehearing before the original arbitrator or remand to the original arbitrator that portion of the dispute which the court concludes the arbitrator failed to determine. (Added by Stats. 1982, Ch. 466, Sec. 90.)
  130. 10240.13.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. )

    Verify source ↗

    Arbitration costs are generally split equally, but some party-incurred costs are not shared; the arbitrator can let the prevailing party recover certain costs, and interest or attorney fees may be available only in specified circumstances.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. ) ## 10240.13. The cost of conducting the arbitration shall be borne equally by the parties. The filing fee, witness fees, costs of discovery, or any other cost necessarily incurred by one party shall not be shared by any other party, except that the arbitrator may allow the prevailing party to recover its costs and necessary disbursements, other than attorney’s fees, on the same basis as is allowed in civil actions. These costs shall be taxed as in civil actions. Interest may be recovered as part of the award as in a civil action. The arbitrator has the same authority as a court in awarding interest and the commencement of the arbitration is equivalent to the filing of an action under subdivision (b) of Section 3287 of the Civil Code for the purpose of an award of interest. If a party has made an offer of settlement and the award is less favorable than the offer, then the party who has received the offer shall not recover any interest accruing from and after the date on which the offer was made, nor costs of suit. Reasonable attorney fees may be recovered according to any of the following: (a) By a party who has made an offer under the circumstances set forth in the preceding sentence but only as to those fees incurred from and after the time of making the offer. (b) Against a party when substantial evidence establishes that the party has acted frivolously or in bad faith in its demand for, or participation in, the arbitration. (Added by Stats. 1982, Ch. 466, Sec. 90.)
  131. 10240.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. )

    Verify source ↗

    A claimant must pursue and exhaust the contract’s required administrative procedures before arbitration; if more than 240 days have passed since the department accepted the work, the claimant may still arbitrate even if those procedures are unfinished.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. ) ## 10240.2. A failure by the claimant to pursue diligently and exhaust, as to the claim, the required administrative procedures set forth in the contract under which the claim arose shall be a bar to arbitration hereunder until there has been compliance therewith. Subject to the preceding sentence, if more than 240 days have elapsed since acceptance of the work by the department, the claimant is entitled to arbitration, even though the procedures are not concluded. (Added by Stats. 1982, Ch. 466, Sec. 90.)
  132. 10240.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. )

    Verify source ↗

    Unless the parties agree otherwise, arbitration must use a single arbitrator chosen by the parties from the Committee’s certified list. If they cannot agree, either party may ask the superior court to appoint one.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. ) ## 10240.3. Unless otherwise agreed by the parties, the arbitration shall be conducted by a single arbitrator selected by the parties from the certified list created by the Public Works Contract Arbitration Committee. If the parties cannot agree on the arbitrator, either party may petition the superior court to appoint one from the panel of arbitrators certified by the Public Works Contract Arbitration Committee. (Added by Stats. 1982, Ch. 466, Sec. 90.)
  133. 10240.4.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. )

    Verify source ↗

    A department’s decision is not final on any issue in the arbitration.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. ) ## 10240.4. No decision made by a department shall be conclusive on any issue in the arbitration. (Added by Stats. 1982, Ch. 466, Sec. 90.)
  134. 10240.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. )

    Verify source ↗

    Three California departments must jointly adopt uniform arbitration regulations for this article, and they may later modify, revise, or repeal them.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. ) ## 10240.5. (a) The Departments of General Services, Transportation, and Water Resources shall jointly adopt and may, from time to time, modify, revise, or repeal uniform regulations to implement this article, which regulations shall be consistent with this article and Article 7.2 (commencing with Section 10245). The regulations may include, but need not be limited to: (1) The method of initiating arbitration. (2) The place of hearing based upon the convenience of the parties. (3) Procedures for the selection of a neutral arbitrator. (4) The form and content of any pleading. (5) Procedure for conducting hearings. (6) The providing of experts to assist the arbitrator in the event the assistance is needed. (7) The content of the award. (8) Simplified procedures for claims of fifty thousand dollars ($50,000) or less. (b) Pending adoption of the initial uniform regulations under this section, the arbitration rules set forth in Subchapter 3 (commencing with Section 301) of Chapter 2 of Title 1 of the California Code of Regulations, shall govern the conduct of arbitrations under this chapter. (Amended by Stats. 2006, Ch. 538, Sec. 536. Effective January 1, 2007.)
  135. 10240.6.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. )

    Verify source ↗

    This section defines “claim” for this article as a demand for monetary compensation or damages tied to a contract awarded under this chapter.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. ) ## 10240.6. As used in this article, “claim” means a demand for monetary compensation or damages, arising under or relating to the performance of a contract awarded under this chapter. (Added by Stats. 1982, Ch. 466, Sec. 90.)
  136. 10240.7.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. )

    Verify source ↗

    This section defines “Public Works Contract Arbitration Committee” as the committee created by Article 7.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. ) ## 10240.7. As used in this article, “Public Works Contract Arbitration Committee” means the committee created by Article 7.2 (commencing with Section 10245). (Added by Stats. 1982, Ch. 466, Sec. 90.)
  137. 10240.8.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. )

    Verify source ↗

    Unless the parties agree otherwise, the arbitration decision must follow California law, be supported by substantial evidence, and be in writing with the basis, findings of fact, and conclusions of law.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. ) ## 10240.8. Unless the parties to the contract otherwise agree, the arbitration decision shall be decided under and in accordance with the law of this state, supported by substantial evidence and, in writing, contain the basis for the decision, findings of fact, and conclusions of law. (Added by Stats. 1982, Ch. 466, Sec. 90.)
  138. 10240.9.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. )

    Verify source ↗

    A contract party may join an arbitration with certain related persons if they have agreed and joinder is needed to avoid inconsistent obligations or decisions.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.1. Resolution of Contract Claims [10240 - 10240.13] ( Article 7.1 added by Stats. 1982, Ch. 466, Sec. 90. ) ## 10240.9. A party to the contract may join in the arbitration as a party, any supplier, subcontractor, design professional, surety, or other person who has so agreed and if the joinder is necessary to prevent a substantial risk of the party otherwise being subjected to inconsistent obligations or decisions. (Added by Stats. 1982, Ch. 466, Sec. 90.)
  139. 10245.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.2. Public Works Contract Arbitration Committee [10245 - 10245.4] ( Article 7.2 added by Stats. 1982, Ch. 466, Sec. 91. )

    Verify source ↗

    The Public Works Contract Arbitration Committee is established with seven members, including public members appointed by the Governor and members appointed by certain department directors.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.2. Public Works Contract Arbitration Committee [10245 - 10245.4] ( Article 7.2 added by Stats. 1982, Ch. 466, Sec. 91. ) ## 10245. There is hereby established the Public Works Contract Arbitration Committee, which shall consist of seven members, as follows: (a) Three public members, who shall be appointed by the Governor, each of whom shall have at least ten years’ experience with a general contracting firm engaged, during that period, in public works construction in California. (b) The directors of the Departments of General Services, Transportation, and Water Resources shall each appoint a member, who shall be a state officer or employee within their respective departments. Each member shall serve at the pleasure of the director who appointed the member. (c) The Director of the Office of Administrative Hearings shall be a nonvoting member of the Public Works Contract Arbitration Committee. (Added by Stats. 1982, Ch. 466, Sec. 91.)
  140. 10245.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.2. Public Works Contract Arbitration Committee [10245 - 10245.4] ( Article 7.2 added by Stats. 1982, Ch. 466, Sec. 91. )

    Verify source ↗

    Members appointed by the Governor serve four-year terms, stay in office until a successor is appointed, receive no compensation, and may be reimbursed for necessary travel and other duty-related expenses.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.2. Public Works Contract Arbitration Committee [10245 - 10245.4] ( Article 7.2 added by Stats. 1982, Ch. 466, Sec. 91. ) ## 10245.1. Each member appointed by the Governor shall serve for a term of four years, but shall continue in office until the successor to the member is appointed. Each member shall serve without compensation, but shall be reimbursed for travel and other expenses necessarily incurred in the performance of the member’s duties. (Added by Stats. 1982, Ch. 466, Sec. 91.)
  141. 10245.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.2. Public Works Contract Arbitration Committee [10245 - 10245.4] ( Article 7.2 added by Stats. 1982, Ch. 466, Sec. 91. )

    Verify source ↗

    The committee may make recommendations to the departments about arbitration practice and procedure, and the departments must consult and confer with the committee and consider those recommendations when adopting uniform regulations.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.2. Public Works Contract Arbitration Committee [10245 - 10245.4] ( Article 7.2 added by Stats. 1982, Ch. 466, Sec. 91. ) ## 10245.2. The committee may make recommendations to the departments respecting the arbitration practice and procedure provided by Article 7.1 (commencing with Section 10240). The departments shall consult and confer with the committee respecting the content of the uniform regulations governing the conduct of arbitrations under Article 7.1 (commencing with Section 10240) and shall consider the recommendations in adopting uniform regulations pursuant to Section 10240.5. (Added by Stats. 1982, Ch. 466, Sec. 91.)
  142. 10245.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.2. Public Works Contract Arbitration Committee [10245 - 10245.4] ( Article 7.2 added by Stats. 1982, Ch. 466, Sec. 91. )

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    The committee may set standards for certifying arbitrators, certify people who meet those standards, and remove people from its certified-arbitrator list.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.2. Public Works Contract Arbitration Committee [10245 - 10245.4] ( Article 7.2 added by Stats. 1982, Ch. 466, Sec. 91. ) ## 10245.3. The committee may establish standards and qualifications for the certification of arbitrators and certify as arbitrators persons meeting such standards and qualifications. The committee may remove persons from its list of certified arbitrators. (Added by Stats. 1982, Ch. 466, Sec. 91.)
  143. 10245.4.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.2. Public Works Contract Arbitration Committee [10245 - 10245.4] ( Article 7.2 added by Stats. 1982, Ch. 466, Sec. 91. )

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    The Office of Administrative Hearings must provide administrative, facility, and fiscal support for this article and Article 7.1, and recover those costs through filing fees for each arbitration.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 7.2. Public Works Contract Arbitration Committee [10245 - 10245.4] ( Article 7.2 added by Stats. 1982, Ch. 466, Sec. 91. ) ## 10245.4. The Office of Administrative Hearings shall provide administrative services, facilities, and fiscal support to implement this article and Article 7.1 (commencing with Section 10240). The cost thereof shall be recovered through filing fees imposed for each arbitration. (Added by Stats. 1982, Ch. 466, Sec. 91.)
  144. 10250.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    The department may increase or decrease work quantities under a unit-basis contract while the work is in progress.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10250. The department may increase or decrease quantities of work to be done under a unit basis contract during the progress of the work. (Enacted by Stats. 1981, Ch. 306.)
  145. 10251.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    The department may add contract provisions for extra work and materials needed to finish the project, if bidders have equal access to the proposed extra-work terms.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10251. The department may cause the insertion of provisions in any contract for the performance of such extra work and the furnishing of materials therefor by the contractor as the department requires for the proper completion or construction of the whole work contemplated, if the bidders have equal opportunity of knowing the proposed terms for the extra work. (Enacted by Stats. 1981, Ch. 306.)
  146. 10252.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    The director may grant extensions of time for completion when he thinks that doing so is best for the state.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10252. The director may grant such extensions of time for completion as he deems for the best interests of the state. (Enacted by Stats. 1981, Ch. 306.)
  147. 10253.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    If the director finds the contractor is in default, the director may give at least five days’ written notice and either supply labor or materials and charge the cost to the contractor, or warn the contractor and sureties that control of the work may be terminated if the defaults are not fixed.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10253. If the director deems that a contractor has failed to supply an adequate working force, or material of proper quality, or has failed to comply with Section 10262, or has failed in any other respect to prosecute the work with the diligence and force specified by the contract, the director may: (a) After written notice of at least five days to the contractor, specifying the defaults to be remedied, provide any such labor or materials and deduct the cost from any money due or to become due to the contractor under the contract; or (b) If he considers that the failure is sufficient ground for such action, he may give written notice of at least five days to the contractor and the contractor’s sureties, that if the defaults are not remedied the contractor’s control over the work will be terminated. (Enacted by Stats. 1981, Ch. 306.)
  148. 10254.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    If defaults are not remedied within the time stated in the notice, the contractor’s control terminates when that time expires.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10254. If the defaults are not remedied within the time specified in the notice, the contractor’s control shall terminate as of the expiration of that time. (Enacted by Stats. 1981, Ch. 306.)
  149. 10255.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    After a termination, the director may take control of the contractor’s on-site materials and use them to finish the contract, and may also let the surety complete the work or arrange completion by day labor or other contractors.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10255. Upon such termination, the director may take possession of and use all or any part of the contractor’s materials, tools, equipment, and appliances upon the premises to complete the contract. Thereupon, he may permit the surety to complete or cause the contract work to be completed, or he may direct that all or any part of the work be completed by day’s labor or by employment of other contractors on informal contracts, or both. (Enacted by Stats. 1981, Ch. 306.)
  150. 10256.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    Informal contracts may be awarded only after a proposal form is prepared, served on the terminated contractor and his surety, and three days are allowed; prequalified persons under Article 4 may bid on them.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10256. Such informal contracts may be awarded only after a proposal form has been prepared, a copy is served upon the contractor whose control has been terminated, and upon his surety, and three days allowed thereafter so that he may cause others to bid. Any person who is prequalified therefor under Article 4 may bid on informal contracts. (Enacted by Stats. 1981, Ch. 306.)
  151. 10257.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    This part generally does not apply to awards of informal contracts, except for prequalification.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10257. The provisions of this part, except as to prequalification, are not applicable to the award of informal contracts. (Enacted by Stats. 1981, Ch. 306.)
  152. 10258.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    If a contractor’s control is terminated or the contractor abandons the work, the contractor cannot receive contract funds until the work is finished.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10258. If the control of a contractor is terminated or he abandons the work, and the work is performed by day’s labor or informal contract as provided in Section 10255, he is not entitled to receive any portion of the amount to be paid under the contract until it is fully completed. After completion, if the unpaid balance exceeds the sum of the amount expended by the state in finishing the work, plus all damages sustained or to be sustained by the state, the excess not otherwise required by law to be retained shall be paid to the contractor, but if such sum exceeds the unpaid balance, the contractor and his surety are liable to the state for the excess. If the surety completes the contract work, as provided in Section 10255, such surety shall be subrogated to money due under the contract and to money which shall become due in the course of completion by the surety, to the extent provided by law. (Enacted by Stats. 1981, Ch. 306.)
  153. 10259.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    When the contract is completed, the original contractor is entitled to get back unused materials, equipment, tools, and appliances, but cannot claim for ordinary depreciation, loss, or wear and tear.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10259. On the completion of the contract, the original contractor is entitled to the return of all his unused materials, and his equipment, tools, and appliances, except that he shall have no claim on account of usual and ordinary depreciation, loss, and wear and tear. (Enacted by Stats. 1981, Ch. 306.)
  154. 10260.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    Notices required by this article may be served on the contractor or the contractor’s agent, personally, by registered mail, or by posting at the project site if they cannot be found or their addresses are unknown.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10260. The notices required by this article may be served on the contractor or on his agent having charge of the work, personally, or by registered mail addressed to the contractor or his agent, or, if neither can be located or their addresses are unknown, by posting in a conspicuous place upon the premises of the project. (Enacted by Stats. 1981, Ch. 306.)
  155. 10261.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    This section controls how state contract payments and retained funds are handled, including limits on progress payments, retention, and who must act on approved estimates.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10261. (a) Payments upon contracts shall be made as the department prescribes upon estimates made and approved by the department, but progress payments shall not be made in excess of 100 percent of the percentage of actual work completed plus a like percentage of the value of material delivered on the ground or stored subject to or under the control of the state, and unused, except as otherwise provided in this section. The department shall withhold not more than 5 percent of the contract price until final completion and acceptance of the project. However, at any time after 95 percent of the work has been completed, the department may reduce the funds withheld to an amount not less than 125 percent of the estimated value of the work yet to be completed, as determined by the department, if the reduction has been approved, in writing, by the surety on the performance bond and by the surety on the payment bond. The Controller shall draw their warrants upon estimates so made and approved by the department and the Treasurer shall pay them. The funds may be released by electronic transfer if that procedure is requested by the contractor, in writing, and if the department has, in place at the time of the request, the mechanism for the transfer. (b) (1) Notwithstanding subdivision (a), when the director of the department has made a finding prior to the bid that a specified project is substantially complex and therefore requires a higher retention amount than 5 percent, and the department includes in the bid documents details explaining the basis for the finding and the actual retention amount, then payments upon contracts by the department shall be made as the department prescribes upon estimates made and approved by the department. However, progress payments shall not be made in excess of 95 percent of the percentage of actual work completed, plus a like percentage of the value of material delivered on the ground or stored, subject to, or under the control of the state, and unused, except as otherwise provided in this section. At any time after 95 percent of the work has been completed, the department may reduce the funds withheld to an amount not less than 125 percent of the estimated value of the work yet to be completed, as determined by the department, if the reduction has been approved, in writing, by the surety on the performance bond and by the surety on the payment bond. The Controller shall draw their warrants upon estimates so made and approved by the department and the Treasurer shall pay them with funds appropriated therefor. The funds may be released by electronic transfer if that procedure is requested by the contractor, in writing, and if the department has, in place at the time of the request, the mechanism for the transfer. (2) Any finding by the director of a department that a project is substantially complex shall include a description of the specific project and why it is a unique project that is not regularly, customarily, or routinely performed by the agency or licensed contractors. (Amended (as amended by Stats. 2017, Ch. 37, Sec. 2) by Stats. 2022, Ch. 121, Sec. 2. (AB 2173) Effective January 1, 2023.)
  156. 10261.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    State agencies must pay interest on late progress payments, and agencies must review payment requests and return improper ones within 7 days.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10261.5. (a) Any state agency which fails to make any progress payment within 30 days after receipt of the payment request from a contractor on a construction contract for an undisputed payment request, which was properly submitted by the contractor to the agency, shall pay interest to the contractor equivalent to the legal rate set forth in subdivision (a) of Section 685.010 of the Code of Civil Procedure. Any state agency which independently calculates the amount due on a progress payment and which fails to make a progress payment within 30 days of the first submittal of the estimate for each contract by the engineer, shall pay interest to the contractor equivalent to the legal rate set forth in subdivision (a) of Section 685.010 of the Code of Civil Procedure. In the event that the payment is not made within 30 days of receipt of the contractor’s request or the first submittal by the engineer, and the Controller has processed the payment within 14 days of receipt of the request or submittal, the contracting state agency shall pay interest to the contractor equivalent to the legal rate set forth in subdivision (a) of Section 685.010 of the Code of Civil Procedure. In the event that the payment is not made within 30 days of receipt of the contractor’s request or the first submittal by the engineer, and the contracting state agency has processed the payment within 16 days after receipt of the request or submittal, the Controller shall pay interest as provided in Section 685.010 of the Code of Civil Procedure. For purposes of this section, a payment request shall be considered properly executed if funds are available for payment of the payment request, and payment is not delayed due to an audit inquiry by the Controller. (b) Upon receipt of a payment request, each agency shall require: (1) That each payment request be reviewed as soon as practicable after receipt for the purpose of determining that a payment request is a proper payment request. (2) Any payment request determined not to be a proper payment request suitable for payment shall be returned as soon as practicable, but not later than seven days, after receipt, specifying the reasons that the payment request is not a proper payment request. (3) The number of days available to a state agency to make a timely payment of payment request without incurring interest shall be reduced by the number of days by which an agency exceeds the requirements of paragraph (2). (Added by Stats. 1990, Ch. 1253, Sec. 1.)
  157. 10261.7.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    A state agency with a website must post specified construction payment details online within 10 days after making the payment, unless the contract is under $25,000 or the payment is a progress payment covered by Section 10262.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10261.7. (a) Within 10 days of making a construction contract payment, a state agency that maintains an Internet Web site shall post on its Internet Web site the following: (1) The project for which the payment was made. (2) The name of the construction contractor or company paid. (3) The date the payment was made or the date the state agency transmitted instructions to the Controller or other payer to make the payment. (4) The payment application number or other identifying information. (5) The amount of the payment. (b) This section shall not apply to a construction contract valued below twenty-five thousand dollars ($25,000). (c) This section shall not apply to progress payments published under Section 10262.3. (Added by Stats. 2017, Ch. 585, Sec. 1. (AB 1223) Effective January 1, 2018.)
  158. 10262.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    Contractors must pay subcontractors within seven days after receiving each progress payment, and subcontractors must notify the Contractors’ State License Board and the department if they are paid less than the approved amount or percentage.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10262. The contractor shall pay to his or her subcontractors, within seven days of receipt of each progress payment, the respective amounts allowed the contractor on account of the work performed by his or her subcontractors, to the extent of each subcontractor’s interest therein. The payments to subcontractors shall be based on estimates made pursuant to Section 10261. Any diversion by the contractor of payments received for prosecution of a contract, or failure to reasonably account for the application or use of the payments constitutes ground for actions prescribed in Section 10253, in addition to disciplinary action by the Contractors’ State License Board. The subcontractor shall notify, in writing, the Contractors’ State License Board and the department of any payment less than the amount or percentage approved for the class or item of work as set forth in Section 10261. (Amended by Stats. 2011, Ch. 700, Sec. 8. (SB 293) Effective January 1, 2012.)
  159. 10262.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    The Department of General Services must publish notice of progress payments to prime contractors in the California State Contracts Register.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10262.3. To facilitate enforcement of Section 10262, the Department of General Services shall publish in the California State Contracts Register notice of progress payments made to prime contractors. (Added by Stats. 1991, Ch. 374, Sec. 1.)
  160. 10262.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    Prime contractors or subcontractors must pay subcontractors within 7 days of each progress payment, may withhold up to 150% of a disputed amount in a good-faith dispute, and a violating contractor owes a monthly penalty plus possible attorney’s fees and costs for the prevailing party.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10262.5. (a) Notwithstanding any other law, a prime contractor or subcontractor shall pay to any subcontractor, not later than seven days after receipt of each progress payment, the respective amounts allowed the contractor on account of the work performed by the subcontractors, to the extent of each subcontractor’s interest therein. In the event that there is a good faith dispute over all or any portion of the amount due on a progress payment from the prime contractor or subcontractor to a subcontractor, then the prime contractor or subcontractor may withhold no more than 150 percent of the disputed amount. Any contractor who violates this section shall pay to the subcontractor a penalty of 2 percent of the amount due per month for every month that payment is not made. In any action for the collection of funds wrongfully withheld, the prevailing party shall be entitled to his or her attorney’s fees and costs. (b) This section shall not be construed to limit or impair any contractual, administrative, or judicial remedies otherwise available to a contractor or a subcontractor in the event of a dispute involving late payment or nonpayment by a contractor or deficient subcontract performance or nonperformance by a subcontractor. (c) On or before September 1 of each year, the head of each state agency shall submit to the Legislature a report on the number and dollar volume of written complaints received from subcontractors and prime contractors on contracts in excess of three hundred thousand dollars ($300,000), relating to violations of this section. (Amended by Stats. 2011, Ch. 700, Sec. 9. (SB 293) Effective January 1, 2012.)
  161. 10263.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    This section requires contract documents to allow retained funds to be replaced with securities and sets rules for escrow, interest, notices, and subcontractor treatment.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10263. (a) Provisions shall be included in any invitation for bid and in any contract documents to permit the substitution of securities for any moneys withheld by a public agency to ensure performance under a contract. At the request and expense of the contractor, securities equivalent to the amount withheld shall be deposited with the State Treasurer or, a state or federally chartered bank in this state, as the escrow agent, who shall then pay the moneys to the contractor. Upon satisfactory completion of the contract, the securities shall be returned to the contractor. (b) Alternatively, the contractor may request and the owner shall make payment of retentions earned directly to the escrow agent. The contractor may direct the investment of the payments into securities and the contractor shall receive the interest earned on the investments upon the same terms provided for in this section for securities deposited by the contractor. Upon satisfactory completion of the contract, the contractor shall receive from the escrow agent all securities, interest, and payments received by the escrow agent from the owner, pursuant to the terms of this section. (c) Alternatively, and subject to the approval and at the sole discretion of the public agency, the payment of retentions earned may be deposited directly with a person licensed under Division 6 (commencing with Section 17000) of the Financial Code as the escrow agent. Upon written request of an escrow agent who has not been approved by the public agency under this subdivision, the public agency shall provide written notice to that escrow agent within 10 business days of receipt of the request indicating the reason or reasons for not approving that escrow agent. An escrow agent that has been disapproved by the public agency may not maintain any cause of action of any nature against the state or any public agency, officer, agent, or employee of any public agency, in connection with the disapproval of that escrow agent. The payments shall be deposited in a trust account with a federally chartered bank or savings association within 24 hours of receipt by the escrow agent. The contractor shall not place any retentions with the escrow agent in excess of the coverage provided to that escrow agent pursuant to subdivision (b) of Section 17314 of the Financial Code. In all respects not inconsistent with this subdivision, the remaining provisions of this section shall apply to escrow agents acting pursuant to this subdivision. In addition, an escrow agent subject to this subdivision shall maintain insurance to cover negligent acts and omissions of the escrow agent in connection with the handling of retentions under this section in an amount not less than one hundred thousand dollars ($100,000) per contract, executed by an admitted insurer and in a form satisfactory to the public agency. (d) Securities eligible for investment under this section shall include those listed in Section 16430 of the Government Code, bank or savings and loan certificates of deposit, interest-bearing demand deposit accounts, standby letters of credit, or any other security mutually agreed to by the contractor and the public agency. The contractor shall be the beneficial owner of any securities substituted for moneys withheld and shall receive any interest thereon. Failure to include the provisions prescribed by this section in bid and contract documents shall void any provisions for performance retentions in a public agency contract. (e) (1) Any contractor who elects to receive interest on moneys withheld in retention by a public agency shall, at the request of any subcontractor, make that option available to the subcontractor regarding any moneys withheld in retention by the contractor from the subcontractor. If the contractor elects to receive interest on any moneys withheld in retention by a public agency, then the subcontractor shall receive the identical rate of interest received by the contractor on any retention moneys withheld from the subcontractor by the contractor, less any actual pro rata costs associated with administering and calculating that interest. In the event that the interest rate is a fluctuating rate, the rate for the subcontractor shall be determined by calculating the interest rate paid during the time that retentions were withheld from the subcontractor. If the contractor elects to substitute securities in lieu of retention, then, by mutual consent of the contractor and subcontractor, the subcontractor may substitute securities in exchange for the release of moneys held in retention by the contractor. (2) This subdivision shall apply only to those subcontractors performing more than 5 percent of the contractor’s total bid. (3) A contractor shall not require any subcontractor to waive any provision of this section. (f) The Legislature hereby finds and declares that the provisions of this section are of statewide concern and are necessary to encourage full participation by contractors and subcontractors in public contract procedures. (g) An escrow agreement used pursuant to this section shall be null, void, and unenforceable unless it is substantially similar to the following form: ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION This Escrow Agreement is made and entered into by and be­tween whose address is hereinafter called “owner,” whose address is hereinafter called “contractor,” and whose address is hereinafter called “escrow agent.” For the consideration hereinafter set forth, the owner, contractor, and escrow agent agree as follows: (1) Pursuant to Section 10263 of the Public Contract Code of the State of California, the contractor has the option to deposit securities with the escrow agent as a substitute for retention earnings required to be withheld by the owner pursuant to the construction contract entered into between the owner and contractor for ____ in the amount of ____ dated ____ (hereafter referred to as the “contract”). Alternatively, on written request of the contractor, the owner shall make payments of the retention earnings directly to the escrow agent. When the contractor deposits the securities as a substitute for the contract earnings, the escrow agent shall notify the owner within 10 days of the deposit. The market value of the securities at the time of the substitution shall be at least equal to the cash amount then required to be withheld as retention under the terms of the contract between the owner and contractor. Securities shall be held in the name of the ____, and shall designate the contractor as the beneficial owner. (2) The owner shall make progress payments to the contractor for those funds which otherwise would be withheld from progress payments pursuant to the contract provision, provided that the escrow agent holds securities in the form and amount specified above. (3) When the owner makes payment of retentions earned directly to the escrow agent, the escrow agent shall hold them for the benefit of the contractor until such time as the escrow created under this contract is terminated. The contractor may direct the investment of the payments into securities. All terms and conditions of this agreement and the rights and responsibilities of the parties shall be equally applicable and binding when the owner pays the escrow agent directly. (4) The contractor shall be responsible for paying all fees for the expenses incurred by the escrow agent in administering the escrow account. These expenses and payment terms shall be determined by the contractor and escrow agent. (5) The interest earned on the securities or the money market accounts held in escrow and all interest earned on the interest shall be for the sole account of contractor and shall be subject to withdrawal by contractor at any time and from time to time without notice to the owner. (6) The contractor shall have the right to withdraw all or any part of the principal in the escrow account only by written notice to the escrow agent accompanied by written authorization from the owner to the escrow agent that the owner consents to the withdrawal of the amount sought to be withdrawn by contractor. (7) The owner shall have a right to draw upon the securities in the event of default by the contractor. Upon seven days’ written notice to the escrow agent from the owner of the default, the escrow agent shall immediately convert the securities to cash and shall distribute the cash as instructed by the owner. (8) Upon receipt of written notification from the owner certifying that the contract is final and complete, and that the contractor has complied with all requirements and procedures applicable to the contract, the escrow agent shall release to the contractor all securities and interest on deposit less escrow fees and charges of the escrow account. The escrow shall be closed immediately upon disbursement of all moneys and securities on deposit and payments of fees and charges. (9) The escrow agent shall rely on the written notifications from the owner and the contractor pursuant to Sections (1) to (8), inclusive, of this agreement and the owner and contractor shall hold the escrow agent harmless from the escrow agent’s release, conversion, and disbursement of the securities and interest as set forth above. (10) The names of the persons who are authorized to give written notice or to receive written notice on behalf of the owner and on behalf of the contractor in connection with the foregoing, and exemplars of their respective signatures are as follows: On behalf of the owner: On behalf of the contractor: Title Title Name Name Signature Signature Address Address On behalf of the escrow agent: _____ Title _____ Name _____ Signature _____ Address _____ At the time the escrow account is opened, the owner and contractor shall deliver to the escrow agent a fully executed counterpart of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement by their proper officers on the date first set forth above. Owner Contractor Title Title Name Name Signature Signature (h) For purposes of this section, “contractor” includes, but is not limited to, a contractor performing a public works contract as defined in Section 1101 as well as any person or entity who would qualify as a contractor under Section 6106.5. (Amended by Stats. 2022, Ch. 93, Sec. 1. (SB 1192) Effective January 1, 2023.)
  162. 10264.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    The department may make staged partial payments for mobilization costs on contracts under this chapter, subject to different percentage caps and timing rules.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10264. (a) With the exception of projects over water requiring marine access, and which have a contract amount greater than twenty-five million dollars ($25,000,000), in addition to the provisions for partial payment made in Section 10261, the department may make partial payments for the mobilization costs of a contract subject to this chapter, not to exceed the following: (1) When 5 percent of the original contract amount is earned, 50 percent of the amount bid for mobilization, or 5 percent of the original contract amount, whichever is lesser, may be paid. (2) When 10 percent of the original contract amount is earned, 75 percent of the amount bid for mobilization or 7.5 percent of the original contract amount, whichever is lesser, may be paid. (3) When 20 percent of the original contract amount is earned, 95 percent of the amount bid for mobilization, or 9.5 percent of the original contract amount, whichever is lesser, may be paid. (4) When 50 percent of the original contract amount is earned, 100 percent of the amount bid for mobilization, or 10 percent of the original contract amount, whichever is lesser, may be paid. (5) Upon completion of all work on the project, payment of any amount bid for mobilization in excess of 10 percent of the original contract amount will be paid. (b) For projects over water requiring marine access, and with a contract amount greater than twenty-five million dollars ($25,000,000), in addition to the provisions for partial payment made in Section 10261, the department may make partial payments for the mobilization costs of a contract subject to this chapter, not to exceed the following: (1) When 1 percent of the original contract amount is earned, 50 percent of the amount bid for mobilization, or 1 percent of the original contract amount, whichever is lesser, may be paid. (2) When 2.5 percent of the original contract amount is earned, 60 percent of the amount bid for mobilization, or 2.5 percent of the original contract amount, whichever is lesser, may be paid. (3) When 5 percent of the original contract amount is earned, 75 percent of the amount bid for mobilization, or 5 percent of the original contract amount, whichever is lesser, may be paid. (4) When 15 percent of the original contract amount is earned, 95 percent of the amount bid for mobilization, or 10 percent of the original contract amount, whichever is lesser, may be paid. (5) When 40 percent of the original contract amount is earned, 100 percent of the amount bid for mobilization, or 15 percent of the original contract amount, whichever is lesser, may be paid. (6) Upon completion of all work on the project, payment of any amount bid for mobilization in excess of 15 percent of the original contract amount shall be paid. This subdivision shall apply only to contracts that are advertised subsequent to the date that the act adding this subdivision becomes effective. (Amended by Stats. 2002, Ch. 965, Sec. 2. Effective September 27, 2002.)
  163. 10265.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. )

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    A claim under the specified Government Code provision is not required, but legal action on a claim must be started within the time period in Section 10240.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 8. Modifications; Performance; Payment [10250 - 10265] ( Article 8 enacted by Stats. 1981, Ch. 306. ) ## 10265. A claim pursuant to Part 3 (commencing with Section 900) of Division 3.6 of Title 1 of the Government Code is not required, but legal action on any claim shall be commenced within the time period specified in Section 10240.1. The department may compromise or otherwise settle any claims arising from the contract at any time. (Amended by Stats. 2002, Ch. 438, Sec. 7. Effective January 1, 2003.)
  164. 10280.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 9. Offenses [10280 - 10284] ( Article 9 enacted by Stats. 1981, Ch. 306. )

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    An officer or employee of the department commits a felony if they corruptly perform an official act that injures the state.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 9. Offenses [10280 - 10284] ( Article 9 enacted by Stats. 1981, Ch. 306. ) ## 10280. Any officer or employee of the department who corruptly performs any official act to the injury of the state, is guilty of a felony. (Enacted by Stats. 1981, Ch. 306.)
  165. 10281.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 9. Offenses [10280 - 10284] ( Article 9 enacted by Stats. 1981, Ch. 306. )

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    A contractor, agent, or employee who corruptly allows a violation of a contract awarded under this part, causing injury to the state, commits a felony.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 9. Offenses [10280 - 10284] ( Article 9 enacted by Stats. 1981, Ch. 306. ) ## 10281. Any contractor or his agent or employee who corruptly permits the violation of any contract awarded under this part to the injury of the state, is guilty of a felony. (Enacted by Stats. 1981, Ch. 306.)
  166. 10282.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 9. Offenses [10280 - 10284] ( Article 9 enacted by Stats. 1981, Ch. 306. )

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    If a subcontractor, agent, or employee knows work is being done in violation of a contract under this part, they must immediately notify the department, inspector, or resident engineer on the project.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 9. Offenses [10280 - 10284] ( Article 9 enacted by Stats. 1981, Ch. 306. ) ## 10282. Any subcontractor or agent or employee of any contractor or subcontractor, who has knowledge of any work being done in violation of any contract under this part and does not immediately notify the department or the inspector or resident engineer upon the project of the violation, is guilty of a felony. (Enacted by Stats. 1981, Ch. 306.)
  167. 10283.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 9. Offenses [10280 - 10284] ( Article 9 enacted by Stats. 1981, Ch. 306. )

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    Felonies covered by this section are punishable by imprisonment under Penal Code Section 1170(h).

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 9. Offenses [10280 - 10284] ( Article 9 enacted by Stats. 1981, Ch. 306. ) ## 10283. Such felonies are punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code. (Amended by Stats. 2011, Ch. 15, Sec. 555. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)
  168. 10284.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 9. Offenses [10280 - 10284] ( Article 9 enacted by Stats. 1981, Ch. 306. )

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    People whose acts are made crimes by this article are liable to the state for double the amount the state lost or may lose because of those acts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 9. Offenses [10280 - 10284] ( Article 9 enacted by Stats. 1981, Ch. 306. ) ## 10284. Such persons are also liable to the state for double the amount the state may have lost, or be liable to lose by reason of the acts made crimes by this article. (Enacted by Stats. 1981, Ch. 306.)
  169. 10285.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 10. Ineligibility to Contract [10285 - 10285.5] ( Article 10 added by Stats. 1985, Ch. 376, Sec. 1. )

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    This section defines “person” for this article.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 10. Ineligibility to Contract [10285 - 10285.5] ( Article 10 added by Stats. 1985, Ch. 376, Sec. 1. ) ## 10285. The term “person,” as used in this article, means any individual, partnership, joint venture, or association or any other organization or any combination thereof. (Added by Stats. 1985, Ch. 376, Sec. 1.)
  170. 10285.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 10. Ineligibility to Contract [10285 - 10285.5] ( Article 10 added by Stats. 1985, Ch. 376, Sec. 1. )

    Verify source ↗

    State agencies may suspend certain contractors and subcontractors for up to three years after a qualifying conviction, and may require a perjury statement about recent convictions to assess eligibility.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 10. Ineligibility to Contract [10285 - 10285.5] ( Article 10 added by Stats. 1985, Ch. 376, Sec. 1. ) ## 10285.1. Any state agency may suspend, for a period of up to three years from the date of conviction, any person from bidding upon, or being awarded, a public works or services contract with the agency under this part or from being a subcontractor at any tier upon the contract, if that person, or any partner, member, officer, director, responsible managing officer, or responsible managing employee thereof, has been convicted by a court of competent jurisdiction of any charge of fraud, bribery, collusion, conspiracy, or any other act in violation of any state or federal antitrust law in connection with the bidding upon, award of, or performance of, any public works contract, as defined in Section 1101, with any public entity, as defined in Section 1100, including, for the purposes of this article, the Regents of the University of California or the Trustees of the California State University. A state agency may determine the eligibility of any person to enter into a contract under this article by requiring the person to submit a statement under penalty of perjury declaring that neither the person nor any subcontractor to be engaged by the person has been convicted of any of the offenses referred to in this section within the preceding three years. (Added by Stats. 1985, Ch. 376, Sec. 1.)
  171. 10285.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 10. Ineligibility to Contract [10285 - 10285.5] ( Article 10 added by Stats. 1985, Ch. 376, Sec. 1. )

    Verify source ↗

    Before suspending a person under this article, the state agency must give a hearing on reasonable notice.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 10. Ineligibility to Contract [10285 - 10285.5] ( Article 10 added by Stats. 1985, Ch. 376, Sec. 1. ) ## 10285.2. Before suspending any person under this article, the state agency shall provide a hearing upon reasonable notice. In determining whether to suspend, and the duration of any suspension, the state agency shall consider, in addition to any other relevant factors, both of the following: (a) The degree to which the person cooperated with the state or federal authorities in the criminal proceeding. (b) The degree to which the person has agreed to restitution for any damages incurred by the public entity as a result of the acts upon which the conviction was based. (Added by Stats. 1985, Ch. 376, Sec. 1.)
  172. 10285.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 10. Ineligibility to Contract [10285 - 10285.5] ( Article 10 added by Stats. 1985, Ch. 376, Sec. 1. )

    Verify source ↗

    If one state agency suspends a person under this article, any other state agency must adopt that suspension’s terms without giving more notice or holding a hearing.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 10. Ineligibility to Contract [10285 - 10285.5] ( Article 10 added by Stats. 1985, Ch. 376, Sec. 1. ) ## 10285.3. In the event that any state agency has suspended any person under this article, any other state agency shall adopt the terms of that suspension without further notice or hearing. (Added by Stats. 1985, Ch. 376, Sec. 1.)
  173. 10285.4.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 10. Ineligibility to Contract [10285 - 10285.5] ( Article 10 added by Stats. 1985, Ch. 376, Sec. 1. )

    Verify source ↗

    A state agency that has suspended a person under this article may end the suspension if it decides doing so is in the agency’s best interest.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 10. Ineligibility to Contract [10285 - 10285.5] ( Article 10 added by Stats. 1985, Ch. 376, Sec. 1. ) ## 10285.4. In the event that any state agency has suspended any person under this article, that agency may terminate the suspension if it determines that termination is in the best interest of the agency. In the event of termination, any suspension by adoption pursuant to Section 10285.3 also shall be terminated. (Added by Stats. 1985, Ch. 376, Sec. 1.)
  174. 10285.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 10. Ineligibility to Contract [10285 - 10285.5] ( Article 10 added by Stats. 1985, Ch. 376, Sec. 1. )

    Verify source ↗

    A state agency is not required to contract with, or allow employment as a subcontractor, a person who has been suspended or debarred by the federal agency providing the funds.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1. State Contract Act [10100 - 10285.5] ( Chapter 1 enacted by Stats. 1981, Ch. 306. ) ## ARTICLE 10. Ineligibility to Contract [10285 - 10285.5] ( Article 10 added by Stats. 1985, Ch. 376, Sec. 1. ) ## 10285.5. Nothing in this article shall require any state agency to contract with, or to permit the employment of a person as a subcontractor, or any person on any project funded in whole or part by federal funds, if the person has been suspended or debarred by the federal agency providing the funds. (Added by Stats. 1985, Ch. 376, Sec. 1.)
  175. 10286.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1.5. California Taxpayer and Shareholder Protection Act of 2003 [10286 - 10286.1] ( Chapter 1.5 added by Stats. 2003, Ch. 657, Sec. 2. )

    Verify source ↗

    This chapter is named the California Taxpayer and Shareholder Protection Act of 2003 and may be cited by that name.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1.5. California Taxpayer and Shareholder Protection Act of 2003 [10286 - 10286.1] ( Chapter 1.5 added by Stats. 2003, Ch. 657, Sec. 2. ) ## 10286. This chapter shall be known and may be cited as the California Taxpayer and Shareholder Protection Act of 2003. (Added by Stats. 2003, Ch. 657, Sec. 2. Effective January 1, 2004.)
  176. 10286.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1.5. California Taxpayer and Shareholder Protection Act of 2003 [10286 - 10286.1] ( Chapter 1.5 added by Stats. 2003, Ch. 657, Sec. 2. )

    Verify source ↗

    State agencies generally may not contract with expatriate corporations or their subsidiaries, unless a waiver applies or a specific exemption removes the declaration requirement.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 1.5. California Taxpayer and Shareholder Protection Act of 2003 [10286 - 10286.1] ( Chapter 1.5 added by Stats. 2003, Ch. 657, Sec. 2. ) ## 10286.1. (a) For purposes of this part, except as otherwise provided in subdivisions (b) and (c), a state agency shall not enter into any contract with an expatriate corporation or its subsidiaries. (b) (1) For purposes of this chapter, an “expatriate corporation” means a foreign incorporated entity that is publicly traded in the United States to which all of the following apply: (A) The United States is the principal market for the public trading of the foreign incorporated entity. (B) The foreign incorporated entity has no substantial business activities in the place of incorporation. (C) Either clause (i) or clause (ii) applies: (i) The foreign entity was established in connection with a transaction or series of related transactions pursuant to which (I) the foreign entity directly or indirectly acquired substantially all of the properties held by a domestic corporation or all of the properties constituting a trade or business of a domestic partnership or related foreign partnership, and (II) immediately after the acquisition, more than 50 percent of the publicly traded stock, by vote or value, of the foreign entity is held by former shareholders of the domestic corporation or by former partners of the domestic partnership or related foreign partnership. For purposes of subclause (II), any stock sold in a public offering related to the transaction or a series of transactions is disregarded. (ii) The foreign entity was established in connection with a transaction or series of related transactions pursuant to which (I) the foreign entity directly or indirectly acquired substantially all of the properties held by a domestic corporation or all of the properties constituting a trade or business of a domestic partnership or related foreign partnership, and (II) the acquiring foreign entity is more than 50 percent owned, by vote or value, by domestic shareholders or partners. (iii) For purposes of this subparagraph, indirect acquisition of property includes the acquisition of a stock share, or any portion thereof, of the owner of that property. (2) For purposes of this chapter, neither of the following are an “expatriate corporation”: (A) A foreign incorporated entity that is publicly traded in the United States if all of the following are true: (i) The foreign incorporated entity, or any predecessor entity, was originally established in connection with a transaction or series of related transactions between unrelated publicly traded corporations. (ii) Immediately after the transaction or series of related transactions, not more than 70 percent of the publicly traded stock, by vote or value, of the foreign incorporated entity is held in the manner described in clause (i) of subparagraph (C) of paragraph (1). (iii) The transaction or series of related transactions that originally established the foreign incorporated entity, or any predecessor entity, was a taxable transaction for any United States shareholders of any domestic corporation that was a party to such transaction. (iv) The foreign incorporated entity is both of the following: (I) Created or organized under the laws of a foreign country with which the United States has a comprehensive income tax treaty. (II) Considered a resident of that foreign country for purposes of that treaty, or any successor treaty with that foreign country meeting the requirements of this paragraph. (B) Any successor corporation that meets the requirements of clause (iv) of subparagraph (A) that is a successor corporation resulting from a corporate reorganization as defined in Section 368 of the Internal Revenue Code or from a transaction satisfying the requirements of Section 351 of the Internal Revenue Code. (3) Notwithstanding subdivision (a), a state agency may contract with an expatriate corporation, or its subsidiary, if it was an expatriate corporation before January 1, 2004, to which both of the following apply: (A) The foreign entity provides, by operation of law, by provisions of its governing documents, by resolution of its board of directors, or in any other manner, at least the following shareholders’ rights: (i) Shareholders of the entity have the right to inspect, at a principal place of business in the United States, copies of the entity’s books and records, including, but not limited to, shareholder names, addresses, and shareholdings in accordance with the corporation law, as amended from time to time and as that law is interpreted by the courts, of the United States jurisdiction in which the entity was previously incorporated, or, if the entity was not previously incorporated, in accordance with the terms set forth in the Model Business Corporation Act, as that act may be amended from time to time, provided that, if the corporate law of the United States jurisdiction in which the entity was previously incorporated or the Model Business Corporation Act does not provide access to the shareholder names, addresses, and shareholdings, these books and records are available for inspection by shareholders for purposes properly related to their status as shareholders of the entity. (ii) The entity permits its shareholders to bring derivative proceedings on behalf of the entity, provided that these derivative proceedings are brought on a basis and under the terms applicable under the law, as amended from time to time and as interpreted by, or required by, the courts of the United States jurisdiction in which the entity was previously incorporated, or, if the entity was not previously incorporated, on a basis and under the terms set forth in the Model Business Corporations Act as that act may be amended from time to time and as it is interpreted by, or required by, the courts. (iii) Entity transactions in which any director is interested are approved in accordance with the applicable law, as amended from time to time and as interpreted by the courts, of the United States jurisdiction in which the entity was previously incorporated, or, if the entity was not previously incorporated, in accordance with the terms set forth in the Model Business Corporations Act, as may be amended from time to time and as interpreted by the courts. (iv) The entity has consented to the jurisdiction, for any otherwise available cause of action by or on behalf of the entity’s shareholders, including any pendent state causes of action, of all of the following courts: (I) The state courts of one or more states. (II) The United States federal courts in any state in which the entity consents to the jurisdiction of that state’s courts pursuant to subclause (I). (v) The entity has appointed an agent for service of process in the state or states in which the entity has consented to jurisdiction, as described in clause (iv), and the entity meets at least one of the following conditions: (I) The entity has unencumbered assets in the United States, which assets may include equity or debt investments in United States companies, with a book value in excess of fifty million dollars ($50,000,000), and the entity delivers to the Secretary of State an opinion of an attorney licensed in the United States that judgments rendered against the entity may be satisfied by using these assets. (II) The entity posts a bond or similar security in an amount of at least fifty million dollars ($50,000,000). (III) The entity has directors’ and officers’ insurance in an amount of at least fifty million dollars ($50,000,000). (vi) The entity agrees that, in connection with any lawsuit brought against it by its shareholders in any court in which the entity has consented to jurisdiction as described in clause (iv), the entity will provide to the court notice of the manner in which the entity complied with clause (v) and, if the entity complied with that clause in the manner specified in subclause (I) of clause (v), a copy of the opinion described in that subclause. (vii) Shareholder approval is required for any sale of all or substantially all of the entity’s assets in accordance with the law, as amended from time to time and as it is interpreted by the courts, of the United States jurisdiction in which it was previously incorporated, or, if it was not previously incorporated, in accordance with the terms set forth in the Model Business Corporations Act, as it may be amended from time to time. (viii) The directors and officers of the entity occupy a fiduciary relationship with the entity and its shareholders and these directors and officers, in performing their duties, act in good faith in a manner that a director or officer believes to be in the best interests of the entity and its shareholders, as that standard of care is interpreted by the courts. (ix) The entity agrees to hold no more than one of every four annual shareholder meetings in a location outside the United States and, in the event that the entity holds an annual meeting outside the United States, the entity agrees to provide access to that meeting through a Web cast or other technology that allows the entity’s shareholders to do both of the following: (I) Listen to the meeting, watch the meeting, or both. (II) Send questions that will be addressed at the meeting. (x) The entity provides a description of the shareholder rights described in clauses (i) to (ix), inclusive, and any subsequent changes to these rights, on the entity’s Web site or in its 10K filings with the United States Securities and Exchange Commission. (B) The entity uses worldwide combined reporting to calculate the income on which it pays taxes to the state. (c) The chief executive officer of a state agency or his or her designee may waive the prohibition specified in subdivision (a) if the executive officer or his or her designee has made a written finding that the contract is necessary to meet a compelling public interest. For purposes of this section, a “compelling public interest” includes, but is not limited to, ensuring the provision of essential services, ensuring the public health and safety, or an emergency as defined in Section 1102. If a waiver is granted to a vendor pursuant to this subdivision, the requirement to submit a declaration of compliance, as set forth in paragraph (1) of subdivision (d), does not apply to that vendor. (d) (1) For purposes of this chapter, “state agency” means every state office, department, division, bureau, board, commission, and the California State University, but does not include the University of California, the Legislature, the courts, or any agency in the judicial branch of government. (2) On or after January 1, 2004, all state agencies shall, as a condition of the contract, require any vendor that is offered a contract to do business with the state to submit a declaration stating that the vendor is eligible to contract with the state pursuant to this section. (3) A vendor that declares as true any material matter in a declaration described in this subdivision that he or she knows to be false is guilty of a misdemeanor. (e) (1) Except as provided in paragraph (2) and subdivision (f), this section applies to contracts that are entered into on or after January 1, 2004. (2) With respect to an entity that was an expatriate corporation, as defined in paragraph (1) of subdivision (b), before January 1, 2004, this section applies to contracts that are entered into on or after April 1, 2004. (f) (1) The declaration requirement set forth in subdivision (d) does not apply to a credit card purchase of goods of two thousand five hundred dollars ($2,500) or less. (2) The total amount of exemption authorized herein shall not exceed seven thousand five hundred dollars ($7,500) per year for each company from which a state agency is purchasing goods by credit card. It shall be the responsibility of each state agency to monitor the use of this exemption and adhere to these restrictions on these purchases. (Amended by Stats. 2010, Ch. 349, Sec. 2. (AB 759) Effective January 1, 2011.)
  177. 10290.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 1. Definitions [10290 - 10290.3] ( Article 1 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    This section defines procurement terms used in the chapter.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 1. Definitions [10290 - 10290.3] ( Article 1 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10290. As used in this chapter: (a) “Department” means the Department of General Services. (b) “Director” means the Director of General Services. (c) “Centralized purchasing” means the purchase for state agencies of materials, supplies, and equipment by the Office of Procurement. (d) “Goods” means all types of tangible personal property, including materials, supplies, and equipment. (e) “Office” means the Office of Procurement in the Department of General Services. (f) “Price schedule” means an agreement between the Office of Procurement and a supplier under which the supplier agrees to accept orders from the office or a state agency for specified goods at set prices for a specified period of time but which does not obligate the office or state agencies to contract for the specified goods from the supplier. (g) “Regional contract” means a contract of the same type as a statewide contract but applicable only to specified contracting in a particular area or region of the state. (h) “Statewide contract” means a contract awarded by the Office of Procurement to one or more suppliers for the acquisition of specified goods for a period of time, at a price, and in an amount set forth in the contract. (i) “Multiple award” means a contract of indefinite quantity for one or more similar goods, information technology, or services to more than one supplier. (j) “Multiple award schedule” (MAS) is an agreement established between the General Services Administration of the United States and certain suppliers to do business under specific prices, terms, and conditions for specified goods, information technology, or services. (Amended by Stats. 2000, Ch. 918, Sec. 1. Effective January 1, 2001.)
  178. 10290.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 1. Definitions [10290 - 10290.3] ( Article 1 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    State agencies may contract for certain goods and services through suppliers with multiple award schedules if the supplier agrees to extend the same terms and prices. The department may also create schedules or agreements, and it must determine delegation authority and seek input.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 1. Definitions [10290 - 10290.3] ( Article 1 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10290.1. (a) Notwithstanding any other provision of law, in exercising their delegation of contracting authority from the department, state agencies may contract for goods, information technology, or services with suppliers who have multiple award schedules with the General Services Administration of the United States if the supplier is willing to extend those terms, conditions, and prices. The department may also develop multiple award schedules or agreements for use by state agencies in the same manner. (b) The department shall determine the delegation contracting authority for agencies wishing to contract with suppliers who have multiple award schedules. The department shall seek input from both customer departments and agencies and private sector suppliers. (Amended by Stats. 2000, Ch. 918, Sec. 2. Effective January 1, 2001.)
  179. 10290.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 1. Definitions [10290 - 10290.3] ( Article 1 added by Stats. 1983, Ch. 1231, Sec. 4. )

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    Reverse auctions may be used for buying goods and services, but vendors must register before the opening time and the Department of General Services may require prequalification; reverse auctions cannot be used for certain construction contracts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 1. Definitions [10290 - 10290.3] ( Article 1 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10290.3. (a) Notwithstanding the bidding provisions of this chapter, reverse auctions may be utilized for the acquisition of goods and services. The reverse auction process shall include a specification of an opening date and time when real-time electronic bids may be accepted, and provide that the procedure shall remain open until the designated closing date and time. (b) All bids on reverse auctions shall be posted electronically on the Internet, updated on a real-time basis, and shall allow registered bidders to lower the price of their bid below the lowest bid posted on the Internet. (c) The Department of General Services shall require vendors to register before the reverse auction opening date and time, and as part of the registration, agree to any terms and conditions and other requirements of the solicitation. The Department of General Services may require vendors to be prequalified prior to placing bids in a reverse auction. (d) For purposes of this section, “reverse auction” means a competitive online solicitation process for fungible goods or services in which vendors compete against each other online in real time in an open and interactive environment. (e) The reverse auction process may not be used for bidding on any construction contract that is subject to Chapter 1 (commencing with Section 10100). (Added by Stats. 2003, Ch. 266, Sec. 1. Effective January 1, 2004.)
  180. 10295.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    Many state agency contracts need department approval, and the contract papers must be sent to the department.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10295. (a) All contracts entered into by any state agency for (1) the acquisition of goods or elementary school textbooks, (2) services, whether or not the services involve the furnishing or use of goods or are performed by an independent contractor, (3) the construction, alteration, improvement, repair, or maintenance of property, real or personal, or (4) the performance of work or services by the state agency for or in cooperation with any person, or public body, are void unless and until approved by the department. Every contract shall be transmitted with all papers, estimates, and recommendations concerning it to the department and, if approved by the department, shall be effective from the date of the approval. (b) This section applies to a state agency that by general or specific statute is expressly or impliedly authorized to enter into transactions referred to in this section. (c) This section does not apply to any of the following: (1) A transaction entered into by the Trustees of the California State University, by the Board of Governors of the California Community Colleges, or by a department under the State Contract Act or the California State University Contract Law. (2) A contract of a type specifically mentioned and authorized to be entered into by the Department of Transportation under Section 14035 or 14035.5 of the Government Code, Sections 99316 to 99319, inclusive, of the Public Utilities Code, or the Streets and Highways Code. (3) A contract entered into by the Department of Transportation that is not funded by money derived by state tax sources but, rather, is funded by money derived from federal or local tax sources. (4) A contract entered into by the Department of Human Resources for state employee benefits, occupational health and safety, training services, or combination thereof. (5) A contract let by the Legislature. (6) A contract entered into under the authority of Chapter 4 (commencing with Section 11770) of Part 3 of Division 2 of the Insurance Code. (7) A contract entered into by the Department of Forestry and Fire Protection for the purpose of providing logistical support for large-scale prescribed fire operations, including, but not limited to, meals, lodging, hired equipment, onsite preparatory efforts, and land use agreements, or any related subcontract. (Amended by Stats. 2024, Ch. 778, Sec. 2. (SB 1101) Effective January 1, 2025.)
  181. 10295.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    State departments and agencies may not buy tangible personal property from vendors, contractors, or affiliates unless the seller has the required California tax registration, and covered sellers must submit copies of that registration when offered a contract.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10295.1. (a) A state department or agency shall not contract for the purchase of tangible personal property from a vendor, contractor, or an affiliate of a vendor or contractor, unless that vendor, contractor, and all of its affiliates that make sales for delivery into California are holders of a California seller’s permit issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code, or are holders of a certificate of registration issued pursuant to Section 6226 of the Revenue and Taxation Code. A vendor or contractor that sells tangible personal property to a state department or agency, and each affiliate of that vendor or contractor that makes sales for delivery into California, shall be regarded as a “retailer engaged in business in this state,” and shall be required to collect the California sales or use tax on all its sales into the state in accordance with Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. (b) Beginning on and after January 1, 2004, each vendor, contractor, or affiliate of a vendor or contractor that is offered a contract to do business with a state department or state agency shall submit to that state department or agency a copy, as applicable, of that retailer’s seller’s permit or certificate of registration, and a copy of each of the retailer’s applicable affiliate’s seller’s permit or certificate of registration, as described in subdivision (a). This subdivision does not apply to a credit card purchase of goods of two thousand five hundred dollars ($2,500) or less. The total amount of exemption authorized herein shall not exceed seven thousand five hundred dollars ($7,500) per year for each company from which a state agency is purchasing goods by credit card. It shall be the responsibility of each state agency to monitor the use of this exemption and adhere to these restrictions on these purchases. (c) A state department or state agency is exempted from the provisions of subdivision (a) if the executive director of that state department or agency, or his or her designee, makes a written finding that the contract is necessary to meet a compelling state interest. (d) For the purposes of this section: (1) “Affiliate of the vendor or contractor” means any person or entity that is controlled by, or is under common control of, a vendor or contractor through stock ownership or any other affiliation. (2) “Compelling state interest” includes, but is not necessarily limited to, the following: (A) Ensuring the provision of essential services. (B) Ensuring the public health, safety, and welfare. (C) Responding to an emergency, as defined in Section 1102. (3) “State department or agency” means every state office, department, division, bureau, board, and commission, but does not include the University of California, the California State University, the Legislature, the courts, and any agency in the judicial branch of government. (Amended by Stats. 2006, Ch. 453, Sec. 1. Effective January 1, 2007.)
  182. 10295.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    The Department of General Services may not approve certain new-vehicle acquisitions unless it receives a written certification signed by the requesting agency or department’s secretary, director, or designee.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10295.2. (a) No vehicle acquisition request, vehicle purchase order, or new contract shall be approved by the Department of General Services for the purchase of new vehicles that would result in the expenditure of funds unless a certification is received in writing and signed by the secretary or director of an agency or a department, respectively, or his or her designee, that has requested the acquisition of the new vehicles, verifying that the purchase is vital and mission critical for the agency or department. (b) The certification shall include the date, title, and the signature of the person authorizing the purchase. (Amended by Stats. 2011, Ch. 296, Sec. 250. (AB 1023) Effective January 1, 2012.)
  183. 10295.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    State agencies may not award certain large goods-or-services contracts to contractors that discriminate in employee benefits based on spouse or domestic-partner status, and contractors on covered contracts must keep benefit-request information confidential.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10295.3. (a) (1) Notwithstanding any other provision of law, no state agency may enter into any contract for the acquisition of goods or services in the amount of one hundred thousand dollars ($100,000) or more with a contractor who, in the provision of benefits, discriminates between employees with spouses and employees with domestic partners, or discriminates between employees with spouses or domestic partners of a different sex and employees with spouses or domestic partners of the same sex, or discriminates between same-sex and different-sex domestic partners of employees or between same-sex and different-sex spouses of employees. (2) For purposes of this section, “contract” includes contracts with a cumulative amount of one hundred thousand dollars ($100,000) or more per contractor in each fiscal year. (3) For purposes of this section, “domestic partner” means one of two persons who has filed a declaration of domestic partnership with the Secretary of State pursuant to Division 2.5 (commencing with Section 297) of the Family Code. (4) (A) Subject to subparagraph (B), this section does not apply to any contracts executed or amended prior to January 1, 2007, or to bid packages advertised and made available to the public, or any competitive or sealed bids received by the state, prior to January 1, 2007, unless and until those contracts or property contracts are amended after December 31, 2006, and would otherwise be subject to this section. (B) If a duration of a contract executed or amended prior to January 1, 2007, is for more than one year going beyond January 1, 2008, this section shall apply to the contract on January 1, 2008. (5) The requirements of this section shall apply only to those portions of a contractor’s operations that occur under any of the following conditions: (A) Within the state. (B) On real property outside the state if the property is owned by the state or if the state has a right to occupy the property, and if the contractor’s presence at that location is connected to a contract with the state. (C) Elsewhere in the United States where work related to a state contract is being performed. (b) Contractors shall treat as confidential to the maximum extent allowed by law or by the requirement of the contractor’s insurance provider, any request by an employee or applicant for employment for domestic partner or spousal benefits or any documentation of eligibility for domestic partner or spousal benefits submitted by an employee or applicant for employment. (c) After taking all reasonable measures to find a contractor that complies with this section, as determined by the state agency, the requirements of this section may be waived under any of the following circumstances: (1) Whenever there is only one prospective contractor willing to enter into a specific contract with the state agency. (2) If the contract is necessary to respond to an emergency, as determined by the state agency, that endangers the public health, welfare, or safety, or the contract is necessary for the provision of essential services, and no entity that complies with the requirements of this section capable of responding to the emergency is immediately available. (3) Where the requirements of this section violate, or are inconsistent with, the terms or conditions of a grant, subvention, or agreement, provided that a good faith attempt has been made by the agency to change the terms or conditions of any grant, subvention, or agreement to authorize application of this section. (4) Where the contractor is providing wholesale or bulk water, power, or natural gas, the conveyance or transmission of the same, or ancillary services, as required for assuring reliable services in accordance with good utility practice, provided that the purchase of the same may not practically be accomplished through the standard competitive bidding procedures, and further provided that this exemption does not apply to contractors providing direct retail services to end users. (d) (1) If there is a difference in the cost to provide a certain benefit to a domestic partner or spouse, the contractor is not deemed to be in violation of this section so long as the contractor permits the employee to pay any excess costs. (2) The contractor is not deemed to discriminate in the provision of benefits if the contractor, in providing the benefits, pays the actual costs incurred in obtaining the benefit. (3) In the event a contractor is unable to provide a certain benefit, despite taking reasonable measures to do so, the contractor may not be deemed to discriminate in the provision of benefits. (4) For any contracts executed or amended on or after July 1, 2004, and prior to January 1, 2007, and to bid packages advertised and made available to the public, or any competitive or sealed bids received by the state, on or after July 1, 2004, and prior to January 1, 2007, unless and until those contracts or bid packages are amended after June 30, 2004, but prior to January 1, 2007, and would otherwise be subject to this section, a contractor may require an employee to pay the costs of providing additional benefits that are offered to comply with this section if an employee elects to have the additional benefits. This paragraph shall not be construed to permit a contractor to require an employee to cover the costs of providing any benefits, which have otherwise been provided to all employees regardless of marital or domestic partner status. (e) A contractor is not deemed to be in violation of this section if the contractor does any of the following: (1) Offers the same benefits to employees with domestic partners and employees with spouses and offers the same benefits to domestic partners and spouses of employees. (2) Elects to provide the same benefits to individuals that are provided to employees’ spouses and employees’ domestic partners. (3) Elects to provide benefits on a basis unrelated to an employee’s marital status or domestic partnership status, including, but not limited to, allowing each employee to designate a legally domiciled member of the employee’s household as being eligible for benefits. (4) Elects not to provide benefits to employees based on their marital status or domestic partnership status, or elects not to provide benefits to employees’ spouses and to employees’ domestic partners. (f) (1) Every contract subject to this chapter shall contain a statement by which the contractor certifies that the contractor is in compliance with this section. (2) The department or other contracting agency shall enforce this section pursuant to its existing enforcement powers. (3) (A) If a contractor falsely certifies that it is in compliance with this section, the contract with that contractor shall be subject to Article 9 (commencing with Section 10420), unless, within a time period specified by the department or other contracting agency, the contractor provides to the department or agency proof that it has complied, or is in the process of complying, with this section. (B) The application of the remedies or penalties contained in Article 9 (commencing with Section 10420) to a contract subject to this chapter shall not preclude the application of any existing remedies otherwise available to the department or other contracting agency under its existing enforcement powers. (g) Nothing in this section is intended to regulate the contracting practices of any local jurisdiction. (h) This section shall be construed so as not to conflict with applicable federal laws, rules, or regulations. In the event that a court or agency of competent jurisdiction holds that federal law, rule, or regulation invalidates any clause, sentence, paragraph, or section of this code or the application thereof to any person or circumstances, it is the intent of the state that the court or agency sever that clause, sentence, paragraph, or section so that the remainder of this section shall remain in effect. (Amended by Stats. 2011, Ch. 231, Sec. 1. (SB 117) Effective January 1, 2012.)
  184. 10295.35.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    State agencies may not award qualifying goods-or-services contracts to contractors that discriminate in benefits based on actual or perceived gender identity; contractors must keep certain benefits requests and eligibility documents confidential, and contracts must include a compliance certification.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10295.35. (a) (1) Notwithstanding any other law, a state agency shall not enter into any contract for the acquisition of goods or services in the amount of one hundred thousand dollars ($100,000) or more with a contractor that, in the provision of benefits, discriminates between employees on the basis of an employee’s or dependent’s actual or perceived gender identity, including, but not limited to, the employee’s or dependent’s identification as transgender. (2) For purposes of this section, “contract” includes contracts with a cumulative amount of one hundred thousand dollars ($100,000) or more per contractor in each fiscal year. (3) For purposes of this section, an employee health plan is discriminatory if the plan is not consistent with Section 1365.5 of the Health and Safety Code and Section 10140 of the Insurance Code. (4) The requirements of this section shall apply only to those portions of a contractor’s operations that occur under any of the following conditions: (A) Within the state. (B) On real property outside the state if the property is owned by the state or if the state has a right to occupy the property, and if the contractor’s presence at that location is connected to a contract with the state. (C) Elsewhere in the United States where work related to a state contract is being performed. (b) Contractors shall treat as confidential, to the maximum extent allowed by law or by the requirement of the contractor’s insurance provider, any request by an employee or applicant for employment benefits or any documentation of eligibility for benefits submitted by an employee or applicant for employment. (c) After taking all reasonable measures to find a contractor that complies with this section, as determined by the state agency, the requirements of this section may be waived under any of the following circumstances: (1) There is only one prospective contractor willing to enter into a specific contract with the state agency. (2) The contract is necessary to respond to an emergency, as determined by the state agency, that endangers the public health, welfare, or safety, or the contract is necessary for the provision of essential services, and no entity that complies with the requirements of this section capable of responding to the emergency is immediately available. (3) The requirements of this section violate, or are inconsistent with, the terms or conditions of a grant, subvention, or agreement, if the agency has made a good faith attempt to change the terms or conditions of any grant, subvention, or agreement to authorize application of this section. (4) The contractor is providing wholesale or bulk water, power, or natural gas, the conveyance or transmission of the same, or ancillary services, as required for ensuring reliable services in accordance with good utility practice, if the purchase of the same cannot practically be accomplished through the standard competitive bidding procedures and the contractor is not providing direct retail services to end users. (d) (1) A contractor shall not be deemed to discriminate in the provision of benefits if the contractor, in providing the benefits, pays the actual costs incurred in obtaining the benefit. (2) If a contractor is unable to provide a certain benefit, despite taking reasonable measures to do so, the contractor shall not be deemed to discriminate in the provision of benefits. (e) (1) Every contract subject to this chapter shall contain a statement by which the contractor certifies that the contractor is in compliance with this section. (2) The department or other contracting agency shall enforce this section pursuant to its existing enforcement powers. (3) (A) If a contractor falsely certifies that it is in compliance with this section, the contract with that contractor shall be subject to Article 9 (commencing with Section 10420), unless, within a time period specified by the department or other contracting agency, the contractor provides to the department or agency proof that it has complied, or is in the process of complying, with this section. (B) The application of the remedies or penalties contained in Article 9 (commencing with Section 10420) to a contract subject to this chapter shall not preclude the application of any existing remedies otherwise available to the department or other contracting agency under its existing enforcement powers. (f) Nothing in this section is intended to regulate the contracting practices of any local jurisdiction. (g) This section shall be construed so as not to conflict with applicable federal laws, rules, or regulations. In the event that a court or agency of competent jurisdiction holds that federal law, rule, or regulation invalidates any clause, sentence, paragraph, or section of this code or the application thereof to any person or circumstances, it is the intent of the state that the court or agency sever that clause, sentence, paragraph, or section so that the remainder of this section shall remain in effect. (Added by Stats. 2015, Ch. 578, Sec. 1. (SB 703) Effective January 1, 2016.)
  185. 10295.4.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    A state agency must not enter into a goods-or-services contract with a contractor named on specified top-tax-delinquency lists.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10295.4. (a) Notwithstanding any other law, a state agency shall not enter into any contract for the acquisition of goods or services with a contractor whose name appears on either list of the 500 largest tax delinquencies pursuant to Section 7063 or 19195 of the Revenue and Taxation Code. Any contract entered into in violation of this subdivision is void and unenforceable. (b) This section shall apply to any contract executed on or after July 1, 2012. (Added by Stats. 2011, Ch. 455, Sec. 5. (AB 1424) Effective January 1, 2012.)
  186. 10295.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    A state agency must not buy, use, or contract for certain minerals from covered surface mining operations unless the operation appears on the specified public list.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10295.5. (a) Notwithstanding any other law, a state agency shall not acquire or utilize sand, gravel, aggregates, or other minerals produced from a surface mining operation subject to the Surface Mining and Reclamation Act of 1975 (Chapter 9 (commencing with Section 2710) of Division 2 of the Public Resources Code), unless the operation is identified in the list published pursuant to subdivision (b) of Section 2717 of the Public Resources Code. (b) Notwithstanding any other law, a state agency shall not contract with a person who is not a surface mining operator, but who is supplying or utilizing sand, gravel, aggregates, or other minerals, to perform work for, or supply materials to, a state agency, unless the operation is identified in the list published pursuant to subdivision (b) of Section 2717 of the Public Resources Code. (c) For purposes of this section, “minerals” means any naturally occurring chemical element or compound, or groups of elements and compounds, formed from inorganic processes and organic substances, including, but not limited to, coal, peat, and bituminous rock, but excluding geothermal resources, natural gas, and petroleum. (d) The requirements of this section shall apply to mining operations on federal lands or Indian lands that are subject to the Surface Mining and Reclamation Act of 1975 (Chapter 9 (commencing with Section 2710) of Division 2 of the Public Resources Code) pursuant to a memorandum of understanding between the Department of Conservation and the federal agency having jurisdiction over the lands. (Amended by Stats. 2013, Ch. 417, Sec. 1. (SB 447) Effective January 1, 2014.)
  187. 10295.6.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    Sections 10295 and 10297 do not apply to certain Department of Water Resources contracts for power-related activities.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10295.6. Sections 10295 and 10297 do not apply to any contract entered into by the Department of Water Resources under Part 3 (commencing with Section 11100) of Division 6, Chapter 8 (commencing with Section 12930) of Part 6 of Division 6, Division 29 (commencing with Section 80700), or Division 29.5 (commencing with Section 80800), of the Water Code for the acquisition, sale, or transmission of power, or for services to facilitate those activities. (Amended by Stats. 2023, Ch. 367, Sec. 1. (AB 1373) Effective October 7, 2023.)
  188. 10295.8.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

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    A state agency must give the Joint Legislative Budget Committee information about any proposed extension or renewal of a noncompetitively bid goods-or-services contract worth at least $75 million, by the contract end date.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10295.8. For a contract awarded without competitive bidding for the acquisition of goods or services in the amount of seventy-five million dollars ($75,000,000) or more, entered into on or after January 1, 2023, the state agency, on or before the contract end date, shall submit to the Joint Legislative Budget Committee information regarding the terms and conditions of a proposed extension or renewal of the contract. (Added by Stats. 2022, Ch. 543, Sec. 1. (SB 1271) Effective January 1, 2023.)
  189. 10296.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    State agency contracts covered by this section must include a contractor sworn statement about certain federal contempt findings, and the state may rescind a contract if that statement is false.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10296. (a) Every contract entered into by any state agency for any purpose specified in subdivisions (a) to (d), inclusive, of Section 10295, or in Section 10295.6, shall contain a statement by which the contractor swears under penalty of perjury that no more than one final, unappealable finding of contempt of court by a federal court has been issued against the contractor within the immediately preceding two-year period because of the contractor’s failure to comply with an order of a federal court which orders the contractor to comply with an order of the National Labor Relations Board. For purposes of this section, a finding of contempt does not include any finding that has been vacated, dismissed, or otherwise removed by the court because the contractor has complied with the order which was the basis for the finding. The state may rescind any contract in which the contractor falsely swears to the truth of the statement required by this section. (b) (1) This section does not apply to a credit card purchase of goods of two thousand five hundred dollars ($2,500) or less. (2) The total amount of exemption authorized herein shall not exceed seven thousand five hundred dollars ($7,500) per year for each company from which a state agency is purchasing goods by credit card. It shall be the responsibility of each state agency to monitor the use of this exemption and adhere to these restrictions on these purchases. (Amended by Stats. 2011, Ch. 587, Sec. 2. (SB 224) Effective January 1, 2012.)
  190. 10297.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    The department must deny approval of certain contracts if competitive-bidding rules are not met, and it must review noncompetitive contracts for bidding requirements.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10297. The provisions of Section 10295 shall apply both to contracts awarded through competitive bidding and those not subject to competitive bidding. The department shall deny its approval of a contract awarded through competitive bidding if it finds that the contract does not meet the specifications or other conditions of the bidding process, or if any applicable statutes or regulations regarding competitive bidding have been violated. With regard to any contract not awarded through competitive bidding, the department shall ascertain whether the contract is subject to competitive bidding requirements, and if it finds that is the case, the department shall deny its approval. In making its determination on any contract, the department shall consider all other relevant factors, such as clarity of language and legality, and shall utilize its legal staff as necessary to facilitate the approval process. (Added by Stats. 1983, Ch. 1231, Sec. 4. Effective September 30, 1983.)
  191. 10298.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    The director may set up statewide purchasing agreements and related contracts, and state and local agencies may use those contracts without further competitive bidding.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10298. (a) The director may consolidate the needs of multiple state agencies for goods, information technology, and services, and, pursuant to the procedures established in Chapter 3 (commencing with Section 12100), establish contracts, master agreements, multiple award schedules, cooperative agreements, including agreements with entities outside the state, and other types of agreements that leverage the state’s buying power, for acquisitions authorized under Chapter 2 (commencing with Section 10290), Chapter 3 (commencing with Section 12100), and Chapter 3.6 (commencing with Section 12125). State and local agencies may contract with suppliers awarded those contracts without further competitive bidding. (b) The director may make the services of the department available, upon the terms and conditions agreed to, to any city, county, city and county, district, or other local governmental body or corporation empowered to expend public funds for the acquisition of goods, information technology, or services for assisting the agency in acquisitions conducted pursuant to Chapter 2 (commencing with Section 10290), Chapter 3 (commencing with Section 12100), and Chapter 3.6 (commencing with Section 12125). The state shall not incur financial responsibility in connection with contracting for local agencies under this section. (Repealed and added by Stats. 2000, Ch. 918, Sec. 4. Effective January 1, 2001.)
  192. 10298.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    The Department of General Services must periodically review certain contracting policies and training, and must post a related report on its website on January 1, 2019 and every two years after that.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10298.1. (a) The Department of General Services shall periodically review policies and procedures in the State Contracting Manual, and training provided to state personnel as it relates to reasonable accommodation purchases for state employees, pursuant to Section 19230 of the Government Code. (b) On January 1, 2019, and biennially thereafter, the department, in consultation with the Department of Human Resources and the Department of Rehabilitation, shall post on its Internet Web site a report regarding the purchases of services, goods, information technology, and telecommunications related to reasonable accommodations for state employees, pursuant to Section 19230 of the Government Code. The report shall include, but not be limited to, the following: (1) A review of policies and procedures in the State Contracting Manual and personnel training relating to acquisitions. (2) Available data on the number and types of acquisitions made by state entities. (3) Any recommendations to improve the acquisition process. (Added by Stats. 2018, Ch. 405, Sec. 8. (SB 846) Effective September 14, 2018.)
  193. 10298.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    This section lets the director and certain state or local agencies use specified contracting procedures for certain flooring, turf, and lighting installation contracts, but only if the listed conditions are met.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10298.5. (a) The director may use the procedures described in Section 10298 for contracts for the installation, and contracts for the purchase and installation, of carpet, resilient flooring, synthetic turf, or lighting fixtures that will satisfy the requirements of this section. Except as specified in subdivision (b), notwithstanding any other law requiring bidding on public works projects, as defined in Section 1101, state agencies and local agencies, including school districts and any other agency subject to the Local Agency Public Construction Act (Chapter 1 (commencing with Section 20100) of Part 3), may contract with suppliers awarded those contracts, if all of the following requirements are satisfied: (1) The installation work is not performed in connection with new construction. (2) The contractor provides an acknowledgment to the state or local agency that the installation is a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code. (3) (A) Except as otherwise provided in subparagraph (B), the contractor provides the state or local agency with an enforceable commitment that a skilled and trained workforce, as defined in Section 2601, will be used to complete the installation work. (B) This paragraph shall not apply if the state or local agency has entered into a project labor agreement, as defined in Section 2500, that requires all contractors and subcontractors performing the installation work to use a skilled and trained workforce and the contractor agrees to be bound by that project labor agreement. (b) A local agency shall not use the procedures authorized by this section for a contract with an award amount that exceeds the amount in an applicable requirement for the local agency to use a formal competitive bidding process for a contract that exceeds a specified amount. (c) (1) Any state or local agency that enters into a contract for installation, or for purchase or installation, pursuant to this section shall provide notice of that contract to the Department of Industrial Relations pursuant to Section 1773.3 of the Labor Code, regardless of the size of the contract. (2) (A) Notwithstanding Section 10231.5 of the Government Code, no later than January 1, 2027, the Department of Industrial Relations shall submit to the appropriate policy and fiscal committees of the Legislature a report on the use of the procedures authorized by this section. (B) The report shall include, but is not limited to, the following information: (i) A description of the contracts awarded using the procedures authorized by this section, including the state or local agency that awarded the contract. (ii) The contract award amounts. (iii) The contractors awarded the contracts. (C) The report submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code. (d) This section shall remain in effect only until January 1, 2028, and as of that date is repealed. (Added by Stats. 2022, Ch. 310, Sec. 2. (SB 1422) Effective January 1, 2023. Repealed as of January 1, 2028, by its own provisions.)
  194. 10299.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    The director may set up statewide purchasing arrangements for information technology goods and services, and state, local, and certain school districts may use those arrangements without further competitive bidding.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10299. (a) Notwithstanding any other provision of law, the director may consolidate the needs of multiple state agencies for information technology goods and services, and, pursuant to the procedures established in Chapter 3 (commencing with Section 12100), establish contracts, master agreements, multiple award schedules, cooperative agreements, including agreements with entities outside the state, and other types of agreements that leverage the state’s buying power, for acquisitions authorized under Chapter 2 (commencing with Section 10290), Chapter 3 (commencing with Section 12100), and Chapter 3.6 (commencing with Section 12125). State agencies and local agencies may contract with suppliers awarded the contracts without further competitive bidding. (b) The director may make the services of the department available, upon the terms and conditions agreed upon, to any school district empowered to expend public funds. These school districts may, without further competitive bidding, utilize contracts, master agreements, multiple award schedules, cooperative agreements, or other types of agreements established by the department for use by school districts for the acquisition of information technology, goods, and services. The state shall incur no financial responsibility in connection with the contracting of local agencies under this section. (Added by Stats. 2000, Ch. 127, Sec. 30. Effective July 10, 2000.)
  195. 10299.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    The director must run the Natural Gas Services Program, and the department may use it to buy, sell, and manage natural gas services for state and local customers under this section.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10299.1. (a) Notwithstanding any other law, the director shall operate the Natural Gas Services Program to consolidate and address the needs of multiple state agencies for the procurement of natural gas and related services. (b) Procurement of natural gas and related services is vital to public sector facilities in California and, due to the volumes and costs involved, this section authorizes the following: (1) The director shall make the services of the department with respect to the acquisition of natural gas and related services available, under agreed upon terms and conditions, to any city, county, city and county, district, or other local governmental body, and to any nonprofit hospital or educational institution that expends public funds. (2) The department is authorized to enter into interagency agreements with the entities listed in paragraph (1) for the acquisition of natural gas and related services. The department may enter into contracts, master agreements, multiple award schedules, cooperative agreements, agreements with entities outside the state, and other types of agreements that leverage the state’s buying power through the use of a competitive bidding process. The state shall not incur financial responsibility in connection with the contracting of nonstate agencies under this section. (3) The department may buy, sell, exchange, transfer, or otherwise dispose of natural gas acquired by the department pursuant to this section, and may recover the department’s acquisition and other costs to operate the program through customer charges or fees. (4) The department may enter into gas purchase transactions for a term longer than five years, if specifically approved by the director. (5) The program shall adjust to changes in customer requirements and market conditions and create and manage an ongoing pool of gas suppliers. (6) The department is authorized to provide additional services to customers related to the environmental aspects of energy use and the requirements related to greenhouse gas regulations, renewable energy requirements, and similar programs and requirements. (c) Agencies that are in the executive branch of the state government, except the Department of Water Resources, shall use the department’s Natural Gas Services Program for noncore gas purchases of natural gas to ensure maximum participation resulting in the best discounts and prices for the commodity. The director may allow exemptions to this requirement. (d) For purposes of this section, “natural gas” includes, but is not limited to, natural gas, methane, biomethane, compressed natural gas, liquefied natural gas, and other energy commodity that is similar to natural gas, and related services, including, but not limited to, gas storage, gas transportation, and forward purchases of natural gas. (e) During any period in which a Budget Act has not been approved, the department shall continue to receive payment transfers from agencies that are not in the executive branch of the state government and agencies that are in the executive branch of state government that are able to pay because they operate with funds that are continuously appropriated. (f) The department is authorized to charge, collect, and hold funds from a customer that voluntarily requests prepaid long-term natural gas supplies, for a period not to exceed 20 years. (g) The Department of General Services Natural Gas Services Program Fund is hereby established in the State Treasury. Notwithstanding Section 13340 of the Government Code, the fund is hereby continuously appropriated to the department without regard to fiscal year, for the purposes of operating the Natural Gas Services Program. (1) All revenues payable to the department for natural gas and related services shall be deposited in this fund. Any payments from this fund shall only be made for those purposes described in and consistent with this section. (2) The Natural Gas Services Program’s customer fee revenues cannot be shifted or borrowed from the fund. (3) If at the end of any fiscal year, there are unexpended revenues, those revenues shall be retained in the fund and reserved for future Natural Gas Services Program expenses. (h) Funding for the costs incurred by the department in administering this section shall be provided for in the annual Budget Act. (Added by Stats. 2013, Ch. 615, Sec. 1. (AB 650) Effective January 1, 2014.)
  196. 10299.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. )

    Verify source ↗

    Certain state agencies must send the department a report about qualifying call center contracts, and the department must keep and disclose a master list of those contracts on request.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 2. Approval of Contracts [10295 - 10299.5] ( Article 2 added by Stats. 1983, Ch. 1231, Sec. 4. ) ## 10299.5. (a) (1) On and after January 1, 2025, subject to limited exceptions as set forth in subdivision (d), each state agency that enters into a contract with a private entity solely for call center work to provide public or customer service for that state agency or another state agency shall provide a report to the department that contains all of the information set forth in paragraph (2). (2) The number of total jobs and the overall percentage that shall be located within the state, as well as the number and percentage of jobs that shall be located in any other state or states as well as identifying the state and type of jobs located in those states. (b) If the contract is solely for overflow, emergency, or other contingency, the information described in paragraph (2) of subdivision (a) shall be provided in addition to the terms of contingency. (c) The department shall maintain a master list of contracts pursuant to this section and an aggregate number of jobs, including how many are located in another state. This list shall be made available, upon request, to any member of the public. (d) This section shall not apply to a contract or any subcontract reached between a private entity and the State of California or other authority of the State of California where call center services are secondary and the services to be provided are related to state employee benefits. (e) For purposes of this section, “state agency” means any agency, department, division, commission, board, bureau, officer, or other authority of the State of California. (Added by Stats. 2024, Ch. 697, Sec. 1. (AB 2068) Effective January 1, 2025.)
  197. 10300.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 3. Competitive Bidding and Other Acquisition Procedures [10300 - 10334] ( Heading of Article 3 amended by Stats. 2000, Ch. 776, Sec. 9. )

    Verify source ↗

    The department must establish a Customer and Supplier Advocate, and solicitations must notify bidders about the advocate’s services.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 3. Competitive Bidding and Other Acquisition Procedures [10300 - 10334] ( Heading of Article 3 amended by Stats. 2000, Ch. 776, Sec. 9. ) ## 10300. (a) A Customer and Supplier Advocate shall be established in the department as a resource to state agencies and departments, and suppliers seeking information regarding the state process, procedures, and regulations for bidding on state contracts, and as a resource to bidders seeking to file a protest on award in accordance with this chapter. The advocate shall, at a minimum, provide the following services to the protesting bidder: (1) Assistance to customer departments and agencies regarding contracting rules and regulations, and acquisition resource options. (2) Assistance to the bidder in assessing the validity of the bidder’s proposed grounds of filing the protest in accordance with the terms of the solicitation, as well as statutory or regulatory guidelines governing the solicitation in question. (3) Provision of information to the protesting bidder regarding avenues and options available to the bidder to proceed with a formal protest of the award. (b) The advocate shall make services, as specified in this section, available on a timely basis to the protesting bidder. (c) Notification to bidders regarding the availability of services by the advocate shall be included in the solicitation. This notification shall also outline procedures and timelines for bidders who may wish to engage the services of the advocate. (Amended by Stats. 2000, Ch. 776, Sec. 10. Effective September 27, 2000.)
  198. 10301.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 3. Competitive Bidding and Other Acquisition Procedures [10300 - 10334] ( Heading of Article 3 amended by Stats. 2000, Ch. 776, Sec. 9. )

    Verify source ↗

    For qualifying goods contracts, the agency must award the contract to the lowest responsible bidder meeting specifications, unless a stated exception applies.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 3. Competitive Bidding and Other Acquisition Procedures [10300 - 10334] ( Heading of Article 3 amended by Stats. 2000, Ch. 776, Sec. 9. ) ## 10301. Except in cases when the agency and the department agree that an article of a specified brand or trade name is the only article that will properly meet the needs of the agency, or in cases where the Department of General Services has made a determination pursuant to Section 10308, all contracts for the acquisition or lease of goods in an amount of twenty-five thousand dollars ($25,000), or a higher amount as established by the director, shall be made or entered into with the lowest responsible bidder meeting specifications. For purposes of determining the lowest bid, the amount of sales tax shall be excluded from the total amount of the bid. (Amended by Stats. 2016, Ch. 31, Sec. 262. (SB 836) Effective June 27, 2016.)
  199. 10302.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 3. Competitive Bidding and Other Acquisition Procedures [10300 - 10334] ( Heading of Article 3 amended by Stats. 2000, Ch. 776, Sec. 9. )

    Verify source ↗

    For covered department purchases of goods over $25,000 (or a higher amount set by the director), the department must advertise the solicitation, give copies to interested suppliers on request, post a copy publicly, and keep a written record when no bids are taken. The department also must post instructions about a required solicitation statement, and a temporary rule requires awarding agencies to report missing statement errors within 30 days.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 3. Competitive Bidding and Other Acquisition Procedures [10300 - 10334] ( Heading of Article 3 amended by Stats. 2000, Ch. 776, Sec. 9. ) ## 10302. (a) Except in cases of emergency where immediate purchase of goods without bid is necessary for the protection of the public health, welfare, or safety, whenever the department contracts for goods in excess of twenty-five thousand dollars ($25,000), or a higher amount as established by the director, the department shall advertise in the California State Contracts Register the availability of its solicitation, and interested suppliers, upon request, shall be furnished with copies of the solicitation. In addition to advertising in the California State Contracts Register, the department shall post in a public place a copy of the solicitation, which shall remain posted until seven days after an award has been made. Whenever a contract in excess of twenty-five thousand dollars ($25,000), or a higher amount as established by the director, is made pursuant to this section or Section 10301 without the taking of bids, the department shall prepare a written document stating the fact of the contract together with the facts requiring the contract of the goods without the taking of bids. This document shall be maintained by the department and shall be available as a public record. (b) (1) Every solicitation shall contain the following statement: “It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the Business and Professions Code.” (2) On and after March 31, 2010, and until December 31, 2011, if a solicitation does not contain the statement required by paragraph (1), the awarding agency shall report this error to the department within 30 days of the date the awarding agency discovers this error. (3) The department shall post in the State Contracting Manual instructions for including the statement required by paragraph (1) in all affected contracts. (4) The statement required by paragraph (1) shall be deemed to be part of a solicitation even if the statement is inadvertently omitted from the solicitation. (Amended by Stats. 2009, Ch. 490, Sec. 4. (AB 926) Effective January 1, 2010.)
  200. 10302.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 3. Competitive Bidding and Other Acquisition Procedures [10300 - 10334] ( Heading of Article 3 amended by Stats. 2000, Ch. 776, Sec. 9. )

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    Product specifications prepared by the department or another state agency for certain goods contracts are exempt from the Government Code review-and-adoption procedure.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 2. CONTRACTING BY STATE AGENCIES [10100 - 19150] ( Heading of Part 2 added by Stats. 1982, Ch. 1120, Sec. 6. ) ## CHAPTER 2. State Acquisition of Goods and Services [10290 - 10490] ( Heading of Chapter 2 amended by Stats. 2000, Ch. 776, Sec. 4. ) ## ARTICLE 3. Competitive Bidding and Other Acquisition Procedures [10300 - 10334] ( Heading of Article 3 amended by Stats. 2000, Ch. 776, Sec. 9. ) ## 10302.5. All product specifications that the department or any other state agency prepares for goods for any contract entered into by any state agency for the acquisition of goods under Section 10295 are not subject to the review and adoption procedure under Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (Amended by Stats. 2000, Ch. 776, Sec. 11. Effective September 27, 2000.)

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