Public Contract Code, 1981

Payment on the contract cannot be made until the trustees’ surety-bond order is satisfied.

Contracts must state when the work must be completed and set a daily money-forfeiture term for late completion.

Every contract must say that the trustees may change the plans and specifications under this chapter.

The California State University must not approve certain employee health benefit plan contracts unless they comply with specified contraceptive coverage requirements.

A person, firm, or subsidiary that has been awarded a consulting services contract may not later bid on or be awarded related contracts for the contract’s end product after July 1, 2003, subject to stated exceptions.

California State University officers and employees generally may not take outside paid work or financially interested activities tied to CSU-funded or sponsored contracts, and may not contract with a CSU department as an independent contractor.

Certain California State University employees and former employees are barred from entering some contracts tied to work they handled before leaving CSU.

Some California State University contractors must get an identification number and put it on each CSU contract.

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

The trustees may add contract provisions for extra work and materials when they think it is needed for completing the work, if bidders had an equal chance to know the proposed terms.

The trustees may grant extensions of time for completion if they think that doing so is in the best interests of the state.

If the trustees think a contractor has fallen behind or used inadequate workers or materials, they may give notice and either supply the needed labor or materials and deduct the cost, or give notice that the contractor’s control may be terminated if the defaults are not fixed.

If defaults are not remedied within the notice period, the contractor’s control ends when that period expires.

After a termination, the trustees may use the contractor’s materials and equipment on site and may arrange for the work to be finished by the surety, day labor, or other contractors.

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

This chapter does not apply to the award of informal contracts, except for prequalifications.

If a contractor’s control is terminated or the contractor abandons the work, payment is delayed until the work is fully completed, and any leftover or shortfall is handled based on completion costs and damages.

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

Notices required by this article may be served on the contractor or the contractor’s agent in several ways.

Trustees must prescribe contract payment procedures, keep at least 5% of the contract price until final completion and acceptance, and limit progress payments to no more than 95% of the allowed value basis.

This section lets withheld contract money be placed in escrow with the Treasurer if the contractor requests it, pays the expense, and the trustees approve.

If trustees miss a timely progress payment on a construction contract, they must pay interest; they must also review payment requests promptly and return improper ones within 7 days with written reasons.

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

A contractor, agent, or employee who corruptly allows a violation of a contract under this chapter, and thereby injures the state, commits a felony.

A subcontractor, agent, or employee who knows of work violating a contract must immediately notify the trustees, inspector, or resident engineer; failing to do so is a felony.

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

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

This section defines “public entity” for this part of the code.

This code forms the basis of contracts between most public entities and their contractors and subcontractors; for charter cities, it applies unless there is an express exemption or a conflicting charter provision or ordinance.

In this code, “spouse” includes a “registered domestic partner.”

This section defines “public works contract” for this part.

This section defines “emergency” for this code.

This section defines “responsible bidder” for this part.

Local public entities, charter cities, and charter counties may not make bidders responsible for the accuracy or completeness of architectural or engineering plans and specifications on public works projects, except on clearly designated design-build projects.

This section assigns procurement authority for information technology goods and services between the Department of Technology and the Department of General Services.

These university governing bodies are generally not subject to this chapter, but the trustees must develop policies and the board must adopt policies and procedures in their manuals.

The California State University trustees must organize required reports so that each campus is individually shown when applicable.

This section defines terms used in the chapter on acquiring information technology goods and services.

This section says the Department of Technology and the Department of General Services should develop policies and procedures for IT procurement that are efficient, value-effective, competitive, and include delegation, bid-process exclusions, and protest review.

The Department of General Services must pre-negotiate recurring model contract terms with interested vendors for certain IT and telecommunications procurements, and parties must give required notice or identify requested changes within the stated timeframes.

State agencies may use multiple award contracts for certain goods and services, and the Department of General Services must administer the section.

Reverse auctions may be used to buy information technology under this section, subject to Section 10290.3, and “reverse auction” is defined here.

State departments must keep IT acquisition and disposal policies in the State Administrative Manual, and IT acquisitions are generally required to use competitive methods unless an exception applies.

The Department of Technology must set procurement policies and procedures for certain IT and telecommunications acquisitions, and those acquisitions generally must use competitive means unless the Director of Technology approves an exception.

This section sets rules for state IT procurement, including value-based awards, objective evaluation criteria, protest procedures, delegated acquisition limits, and supplier exclusion rules.

The department must evaluate certain information technology contracts at or above $500,000 and use a standard postevaluation form.

The Department of Technology and the Department of General Services may include certain procurement options in policies and procedures for IT acquisitions.

When an RFP is appropriate for certain IT purchases, the controlling department must identify and document specified procurement information before releasing the RFP.

The State Contracting Manual must set the procedures for state bids to buy information technology, revisions must be publicly announced, and the Department of Technology must review IT requests for proposals before public release.

For certain IT procurements using an RFP, the RFP rules and later changes must be shared in writing with bidding vendors and posted publicly; bids may not be scored using extra requirements outside the law, published RFP, or posted addendums.

The Department of General Services and the Department of Technology must coordinate on developing policies and procedures to carry out this chapter.

The Department of General Services and the Department of Technology may adopt necessary rules and regulations for this chapter, in addition to meeting the mandatory requirements in Sections 12102, 12102.1, and 12102.2.

Until the required procedures are published in the State Administrative Manual, information technology goods and services must be handled under existing manual procedures or under a specified Government Code article, as determined by the Department of General Services.

The Director of General Services and the Director of Technology may make their department services available to tax-supported public agencies in the state, including school districts, on satisfactory terms and conditions, to help them acquire information technology goods or services.

This section sets minimum contract withholding levels for certain information technology contracts and requires the Department of General Services to maintain risk-evaluation criteria.

State and local agencies may make telecommunications-service agreements and financing agreements, but they may not use this section to change or bypass existing acquisition procedures or agency acquisition authority.

Telecommunications contracts and acquisitions are to be handled under the Department of Technology, with separate bidding and acquisition functions for CSU and community college telecommunications purchases.

The Alternative Protest Process is established and must be administered by the Department of General Services and the Department of Technology under the referenced chapter provisions.

This section lets certain state departments and agencies use an alternative protest process for specified solicitations, and it sets rules for who may protest, review deadlines, bond requirements, and decision timing.

Major information technology acquisitions under this chapter must meet stated procurement criteria.

Certain procurements under this chapter must satisfy at least one listed criterion.

The Department of General Services and the Department of Technology must apply this chapter to specified information technology and procurement-related categories.

The Department of General Services must send the Legislature a report and recommendations about the Alternative Protest Process by two specified dates.

State agencies contracting for certain public benefit program call center services must use contractors that certify the work will be done solely by workers employed in California, with penalties for false certification or noncompliance.

UC and CSU generally may not hire contractors for services unless the bid certifies work will be done in the United States or identifies work to be done outside the United States.

This section says California should encourage recycled products and expand the use of recycled resources in state operations when feasible.

State agencies generally may not buy printer or duplication cartridges if the seller imposes recycling or remanufacturing restrictions, and agencies must tell bidders about that rule.

The Department of Resources Recycling and Recovery must provide training and awareness information about recycling and waste collection, and a department must submit a recycling plan by August 31, 1990.

The Department of Resources Recycling and Recovery must maintain a recycling plan for the Legislature and provide related reporting, training, and implementation.

The Department of Resources Recycling and Recovery may contract as necessary to recycle products returned under Section 12165.

Proceeds from specified recycling-related activities in state and legislative offices must be used to offset program recycling costs.

The state policy is to encourage use of marketable end products from superior waste management and to give special consideration to state purchases of compost and co-compost products.

State departments and agencies must prefer compost and cocompost products when those products can substitute for regular fertilizer or soil amendment products, cost no more, and meet applicable state standards and regulations.

The Legislature states that revenue from state purchases of co-compost products should be used by counties, cities, and local agencies to help offset certain waste-facility costs.

This section defines terms used in the recycled materials article.

A state agency must buy recycled products instead of nonrecycled products when the products are equal in fitness and quality, the recycled option costs no more than 10% more, and one listed procurement situation applies.

The University of California does not have to follow this article’s procurement requirements, but it must report certain purchases and the share that meet the recycled-content minimums.

State agencies must meet recycled-product purchasing minimums and require their contractors to use recycled products where economically feasible.

State agencies and businesses must use written certifications about the percentage of postconsumer material in goods sold to the state.

This section says the article applies to purchases of certain listed goods and materials.

This section sets recycled-content minimums for many product categories and requires CalRecycle to update and publish the products list and requirements.

State agencies must report each year to CalRecycle on recycled product purchasing progress, and the department must send CalRecycle specified product lists by October 31 each year.

A state agency may print a recycled-product statement, if the agency director or designee chooses to do so. The statement is set by the department in consultation with CalRecycle.

State agency purchasing staff must take annual CalRecycle training, and state agencies must structure purchasing to maximize recycled product purchases, with limited public-safety-related exceptions.

This chapter applies to purchases made on behalf of the Legislature, unless another rule provides otherwise.

This section defines key terms for recycled paper and recycled products and sets minimum recycled-content percentages for certain paper products.

This section says the chapter applies to procurement and purchase of listed materials, goods, supplies, or products containing certain recycled resources, if they meet the content requirements in Section 12301.

If a recycled product costs more than the same product made with virgin material, the Legislature must buy fewer of those items or use savings from other recycled-product purchases to help pay for them.

This chapter does not apply to procurement and purchase of asphalt concrete or portland cement concrete pavement.

The Legislature must buy specified minimum percentages of recycled paper products, and contractors selling recycled paper products to the Legislature must certify recycled content.

The Legislature must require contractors to certify recycled content, favor recycled products in purchasing, and set purchase goals for recycled products.

This section defines “environmentally preferable purchasing” as buying or acquiring goods and services with a lesser or reduced effect on human health and the environment than competing goods or services serving the same purpose.

The Department of General Services must provide state agencies with information and assistance on environmentally preferable purchasing, after consulting specified public, industry, and environmental stakeholders.

The Department of General Services must, within existing resources, designate a single contact for environmentally preferable purchasing issues.

This chapter does not override recycled content requirements found elsewhere in law.

A policy on environmentally preferable purchasing cannot be used to require buying goods or services that are inadequate, reduce adequate competition, or are unavailable at a reasonable price within a reasonable time.

Certain contractors with the Department of General Services must certify in writing that their environmental claims match FTC marketing guidelines.

This chapter is named the Federal Laboratory Contracting Act and may be cited by that name.

The Legislature states findings about California state agencies contracting with DOE and NASA research and field centers in California.

The Governor must designate the Secretary of State and Consumer Services as the state’s representative for certain federal contracting communications, and that office must develop policies, procedures, and model contract language.

State agencies may make advance payments on certain federal laboratory contracts if requested, but may not indemnify the center and may not audit its records.

Counties, a city and county, and state agencies may use electronic transmission to enter into contracts and make payments.

A public entity may adopt Internet procedures for receiving bids and supporting materials, and if it does so, it must give the contractor an electronic receipt showing when the submission was received.

For certain state contract money-damage actions or arbitrations, a claim presentation is not required, but the action or proceeding must be started within six months of the agency’s final written decision or, if there are no contract claim provisions, the cause of action accruing. The section does not apply to claims covered by Section 10240.1.

Some bidders and related parties may sue in superior court for damages tied to a failed bid, and the court may award costs and reasonable attorney’s fees; a convicted second lowest bidder who did not correct the violation is barred from using this section.

Contracts related to the 2020 United States Census made by the Government Operations Agency or the Office of Planning and Research are exempt from this part.

This part may be cited as the California Judicial Branch Contract Law.

This section states legislative findings and intent about organizing public contract provisions for judicial branch entities in one part.

This part applies to contracts first entered into or amended by judicial branch entities on or after October 1, 2011.

Judicial branch entities must follow state-agency procurement rules for covered goods, services, and IT, notify the State Auditor about qualifying contracts within 10 business days, and submit certain large IT projects to California Technology Agency review.

This section defines “judicial branch entity” and says certain references to state agency officers or employees are treated as references to people in a judicial branch entity for this part.

The Judicial Council must publish a Judicial Branch Contracting Manual by January 1, 2012, and judicial branch entities subject to the part must follow it.

This section says the part does not require approval, review, or involvement by other state entities in judicial branch procurement, except as Section 19204(a) or another applicable law requires.

This section says it does not allow this part to be used to apply code provisions that do not apply to state agencies and departments.

The Judicial Council must file an annual report on trial-court contracts and payments, and FISCal-using judicial branch entities must make contract and payment data available for transparency and audit purposes.

The California State Auditor must identify and audit certain judicial branch entities on a schedule, notify legislative committees, report findings, and track implementation updates.

A local agency may require bidders to meet minority- and women-business participation goals or make a good-faith effort, and it may waive one meeting requirement if the bidder is already informed.

Local agencies that use these bid rules must require bidders to disclose certain subcontractor information, and prime contractors may list only one subcontractor per work portion.

Local agencies may use small-business preferences in certain contracting situations, but must set the preference limits and adopt required procurement policies.

A bidder or contractor seeking a state agency contract of $100,000 or more must certify specified civil-rights compliance statements when the bid is submitted or the contract is renewed.

This chapter may be cited as the Local Agency Public Construction Act.

Public entities may require bidder questionnaires and financial statements for prequalification, but the questionnaire cannot force disclosure of certain pre-1998 Labor Code violations in the stated subcontractor/no-knowledge situation.

If a public agency switches a public project to day labor after plans and specifications are prepared, it must do the work exactly according to those plans and specifications.

In covered contracts with federal funds, a bid cannot be rejected just because the bidder is unlicensed, but the contractor must be properly licensed when the contract is awarded.

Local agencies must disclose certain indemnity clauses in covered architectural design procurement over $10,000, and the disclosure must be bold.

A covered local agency must give a contractor plan room service an electronic copy of project contract documents at no charge when requested.

This section limits Article 1.5 to certain public works claims of $375,000 or less between a contractor and a local agency, with stated exceptions and a contract-date limit.

This section requires claimants to file written claims with supporting documents by final payment, and sets response and meeting deadlines for local agencies depending on claim amount.

This section requires construction-claim civil actions to go to nonbinding mediation first, then to judicial arbitration if the dispute remains unresolved.

Local agencies must review construction payment requests promptly, return improper requests within 7 days with written reasons, and pay interest if a progress payment is not made within 30 days after receiving a proper undisputed request.

Local agencies must pay undisputed claim amounts unless the contract says otherwise, and in certain suits they must pay interest at the legal rate on arbitration awards or judgments from the filing date.

A qualifying second lowest bidder, or certain related parties, may sue in superior court for damages if the bid was rejected because of the successful bidder’s labor or unemployment-law violation; a convicted second lowest bidder who did not try to correct the violation may not use this section.

This article applies to contracts subject to the State School Building Aid Law of 1949.

A school district may not spend money apportioned under the State School Building Aid Law unless the related contracts were awarded through competitive bidding under the Education Code.

Construction bids must be submitted under sealed cover and include one approved form of bidder’s security. If an unsuccessful bidder’s security is being held after award, the school district must return it within a reasonable time and in any event within 60 days.

This section says the part applies to contracts awarded by certain school districts.

School district governing boards must competitively award certain contracts above specified dollar thresholds, usually to the lowest responsible bidder, unless an exception applies.

School districts may require prequalification questionnaires from prospective bidders, must rate bidders uniformly if they do, and must reject bids that do not use the district’s form or miss the prequalification timing rules.

For certain school district public projects, the district must require bidder prequalification paperwork, have bidders verify it under oath, use a uniform bidder-rating system, and use district-supplied proposal forms; bids not on those forms are disregarded.

A school district’s governing board must publish a bid notice for two weeks in an eligible newspaper, and it may also post the notice online. Late bids cannot be received, and the board may accept bids submitted electronically or on paper.

In an emergency, a school board may, with county superintendent approval, contract for needed school repairs or authorize day labor without bidding.

A school district’s governing board may use day labor or force account for certain repairs, construction, and maintenance, subject to hour limits and, for larger districts, a material-cost limit.

This section defines “maintenance” and “facility” for Section 20114.

The district may use informal bidding for smaller jobs within the article’s limits, but it must not split work to avoid competitive bidding rules and must keep records and give required notices.

If a school district receives two or more identical lowest or highest bids under competitive bidding, its governing board may choose which bid to accept by lot.

A school district board may, in the district’s best interests and without bidding, authorize certain public agencies or vendors to lease or sell property and may approve payment methods for the purchase.

A school district governing board may contract for electronic data-processing systems and supporting software with an acceptable party among the three lowest responsible bidders.

A school district may use competitive negotiation for certain technology-related procurements if the governing board makes the required finding, and it must follow specified request-for-proposals and award procedures.

A school district governing board may buy certain instructional and library materials, in needed amounts, without getting estimates or advertising for bids.

School district boards must put ordered contract changes in writing and agree on the cost; they may approve some changes without bids if the cost stays within stated limits.

This section states the Legislature’s intent to let school districts use task order contracting as an optional bidding method for renovating and repairing school facilities and grounds.

A school district may use task order procurement contracts for school repairs, renovation, and related work, but only under stated limits and conditions.

School districts using this task order contracting method must submit reports to legislative committees by January 15, 2029 and January 15, 2033, and they must pay for the report’s cost.

The task order procurement contracting method is not meant to change the school district governing board’s existing rules for awarding a project to the lowest responsible bidder or rejecting all bids.

This article stays in effect only until January 1, 2034, and is repealed on that date.

This section says the Legislature wants school districts to have an optional alternative procedure for bidding and building school construction projects, and to use best value procurement to help with cost-effective school facility work.

This section defines terms used for Los Angeles Unified School District best value procurement.

School districts must follow specific steps when awarding best value contracts, including bid solicitation, bidder prequalification, and keeping bidder identity and price information confidential during final evaluation.

School districts using the best value procurement method must submit a report to the Legislature by January 1, 2030.

This section says the best value procurement method does not change the school district governing board’s existing guidelines, criteria, procedures, or requirements for awarding a contract to the lowest responsible bidder or rejecting all bids, except as otherwise provided in the article.

This article stays in effect only until January 1, 2031, when it is repealed.

For projects over $1,000,000, the school district’s governing board may use best value procurement, but if it does, it must adopt and publish bidder-evaluation procedures and award the contract to the best value bidder or reject all bids.

The school district’s governing board must follow these rules when awarding best value contracts, including bid notice, bidder prequalification, bid content requirements, and confidentiality limits.

The school district must evaluate bidders using the solicitation criteria, score bids, apply a small-business price preference of up to 5%, and award the contract to the written best-value bidder or reject all bids.

The best value procurement method is not meant to change the school district governing board’s existing guidelines, criteria, procedures, or requirements for awarding a project contract to the lowest responsible bidder or rejecting all bids.

This section defines terms used for school-district best value procurement.

A school district governing board may use best value procurement for projects over $1,000,000 before December 31, 2030, and must adopt published bidder-evaluation procedures.

This article applies to public works contracts awarded by counties subject to Title 3 of the Government Code.

If the estimated cost of certain listed construction work, painting, or repairs exceeds $4,000, the work must be done by contract; a contract not let under this article is void.

A county board of supervisors does not have to contract for certain landfill-related construction and repair work when the work is necessary to keep day-to-day landfill operations running.

In counties with 500,000 or more people, certain work from Section 20121 does not have to be done by contract if the estimated cost is under $6,500, excluding materials or supplies under Section 20133.

Section 20123 creates population-and-cost-based exceptions to the usual application of Sections 20121 and 20122 for county-owned building alteration or repair work.

A person may not split a county public works project into smaller orders to avoid competitive bidding rules.

The board must publish an advertisement for bids for the work in a qualifying county newspaper, or post notice in three public places for at least two weeks if no such newspaper exists.

A bid notice that identifies possible material locations for a construction project must include any conditions or modifications established under Fish and Game Code Section 1603.

All bidders must be given an opportunity to examine the plans, specifications, strain sheets, and working details.

The board must award the contract to the lowest responsible bidder, and the winning bidder must do the work according to the plans and related details unless the board modifies the contract by a four-fifths vote.

The board of supervisors may award individual annual contracts for repair, remodeling, or other repetitive work, subject to a $3,000,000 cap and other limits; new construction is not allowed.

Construction bids must be sealed and include bidder’s security, and the winning bidder must provide a performance bond approved by the board.

A county board of supervisors may reject all bids and have the work done by day’s work if the county surveyor or engineer advises that the facility can be built or repaired for less than the lowest responsible bid.

Some counties may authorize purchasing agents to make certain purchases or contracts without bids or other formalities, subject to cost limits and, for county hospital professional services or medical supplies, a budget appropriation.

A county board of supervisors may let the county administrative officer or equivalent executive officer sign certain county contracts, if the contracts are for approved and budgeted purposes and do not exceed $5,000, and the approval must later be ratified by the board.

This section lets a county board of supervisors use expedited contracting rules for certain emergency or overcrowding-related construction projects, but it also imposes several conditions and follow-up requirements.

Plans and specifications for certain public construction may not be changed in a way that increases cost unless two-thirds of the board of supervisors votes to թույլ authorize it.

A board generally may not alter or change a contract for public building or structure work, unless one of the listed exceptions applies.

When a county contract change is ordered, it must be put in writing by a duly authorized county officer, and the board can approve the contractor to proceed without bids only if the cost is within certain limits.

If a contract modification reduces the cost of the work, compensation must be made to the county.

The board must not pay or accept liability for extra work or extra materials on a building or structure under a contract covered by this article unless Section 20142 is followed or the contract specifically allows it or is properly changed.

The board must determine the payment method for construction contracts, and it may include progress payments for completed work and certain unused materials.

This article does not apply to certain public buildings for juvenile forestry camps, juvenile homes, ranches, or camps when most of the construction work is done by wards of the juvenile court assigned there.

The board may require contract provisions for extra work and materials needed to complete public building or structure projects.

This article does not apply to certain Napa County contracts involving the State of California for work on the Old Bale Mill.

In counties with 6,000,000 or more people, the board of supervisors may, by ordinance, let a county officer handle certain board actions for qualifying public contracts, subject to detailed procedures and contract-size limits.

This section lets a county or public entity use construction manager at-risk contracts for certain infrastructure projects, but only with required approvals and subject to conditions, workforce commitments, subcontracting notice rules, retention limits, and a sunset date.

This section exempts certain County of San Diego communications contracts from the article and lets the county use competitive procurement methods, but if it does not use another available method, the procurement must be a best value procurement.

This section says the article applies to contracts made by counties with 500,000 or fewer people.

Counties with fewer than 500,000 people must use the article’s bidding procedures for public projects, with limited exceptions.

A county may, for a project under $75,000 and after all bids are rejected, adopt a four-fifths board resolution to handle the project itself or negotiate for a lower-price contract or materials deal.

A person must not split or separate a public project into smaller work orders or projects to evade the article’s bidding requirements.

The county board of supervisors must adopt plans, specifications, and working details for public projects costing more than $10,000.