Public Contract Code — Part 8 | PCC — United States — California law | Esheria

Public Contract Code

Part 8 of 9 · provisions 1,401–1,600

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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IT acquisition IT goods and services IT goods and services procurement IT procurement Iran contracting certification Iran-related contracting Iran-related contracting restrictions Iran-related screening RFQ process Year 2000 compliance accessibility standards accounting act accounting procedures acquisition acquisition lists acquisition procedures acquisition standards administrative costs administrative procedures administrative review advertisement exemption advertising advertising for bids agency approval +1,313 more

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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. 22042.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 2. Bidding on Public Contracts [22000 - 22045] ( Chapter 2 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## ARTICLE 3. Public Projects: Alternative Procedure [22030 - 22045] ( Article 3 added by Stats. 1983, Ch. 1054, Sec. 1. )

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    The commission must review a participating public agency’s practices if an interested party shows evidence that the agency is not complying with Section 22034 or 22037.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 2. Bidding on Public Contracts [22000 - 22045] ( Chapter 2 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## ARTICLE 3. Public Projects: Alternative Procedure [22030 - 22045] ( Article 3 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## 22042.5. The commission shall review practices of any participating public agency where an interested party presents evidence that the public agency is not in compliance with Section 22034 or 22037. (Amended by Stats. 2024, Ch. 953, Sec. 6. (AB 2192) Effective January 1, 2025.)
  2. 22043.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 2. Bidding on Public Contracts [22000 - 22045] ( Chapter 2 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## ARTICLE 3. Public Projects: Alternative Procedure [22030 - 22045] ( Article 3 added by Stats. 1983, Ch. 1054, Sec. 1. )

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    Commission review requests must be filed in the required form and within short deadlines, and the agency may not move ahead on certain projects until the commission decides.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 2. Bidding on Public Contracts [22000 - 22045] ( Chapter 2 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## ARTICLE 3. Public Projects: Alternative Procedure [22030 - 22045] ( Article 3 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## 22043. (a) In those circumstances set forth in subdivision (a) of Section 22042, a request for commission review shall be in writing, sent by certified or registered mail received by the commission postmarked not later than eight business days from the date the public agency has rejected all bids. (b) In those circumstances set forth in subdivision (b), (c), (d), or (e) of Section 22042, a request for commission review shall be by letter received by the commission not later than eight days from the date an interested party formally complains to the public agency. (c) The commission review shall commence immediately and conclude within the following number of days from the receipt of the request for commission review: (1) Forty-five days for a review that falls within subdivision (a) of Section 22042. (2) Ninety days for a review that falls within subdivision (b), (c), (d), or (e) of Section 22042. (d) During the review of a project that falls within subdivision (a) of Section 22042, the agency shall not proceed on the project until a final decision is received by the commission. (e) A request for commission review pursuant to Section 22042.5 shall be in writing, sent by certified or registered mail, and received by the commission no later than eight days from the day an interested party formally complains to the public agency. The commission review shall commence immediately and conclude within 90 days from the receipt of the request for commission review. (Amended by Stats. 2024, Ch. 953, Sec. 7. (AB 2192) Effective January 1, 2025.)
  3. 22044.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 2. Bidding on Public Contracts [22000 - 22045] ( Chapter 2 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## ARTICLE 3. Public Projects: Alternative Procedure [22030 - 22045] ( Article 3 added by Stats. 1983, Ch. 1054, Sec. 1. )

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    If the commission finds noncompliance, the public agency and governing body must take specified follow-up steps within set deadlines.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 2. Bidding on Public Contracts [22000 - 22045] ( Chapter 2 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## ARTICLE 3. Public Projects: Alternative Procedure [22030 - 22045] ( Article 3 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## 22044. The commission shall prepare written findings, which shall be presented to the public agency within 30 calendar days of formal commission review. Should the commission find that the provisions of this chapter or of the uniform cost accounting procedures provided for in this chapter were not complied with by the public agency, the following steps shall be implemented by that agency: (a) On those projects set forth in subdivision (a) of Section 22042, the public agency has the option of either (1) abandoning the project, or (2) awarding the project to the lowest responsible bidder. (b) On those projects set forth in subdivision (b), (c), (d), or (e) of Section 22042, the public agency shall present the commission’s findings to its governing body within 30 calendar days of receipt of written notice of the findings and that governing body shall conduct a public hearing with regard to the commission’s findings within 60 calendar days of receipt of the findings. (c) (1) On findings of noncompliance pursuant to Section 22042.5, the public agency shall notify its governing body of the commission’s findings within 60 calendar days of receipt of written notice of the findings from the commission. (2) The public agency shall notify the commission in writing, within 90 days of receipt of written notice of the findings, of the public agency’s best efforts to comply. (Amended by Stats. 2024, Ch. 953, Sec. 8. (AB 2192) Effective January 1, 2025.)
  4. 22044.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 2. Bidding on Public Contracts [22000 - 22045] ( Chapter 2 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## ARTICLE 3. Public Projects: Alternative Procedure [22030 - 22045] ( Article 3 added by Stats. 1983, Ch. 1054, Sec. 1. )

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    If the commission makes the required finding three times within 10 years, it must notify the public agency by certified mail, and the public agency may not use this article’s bidding procedures for five years.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 2. Bidding on Public Contracts [22000 - 22045] ( Chapter 2 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## ARTICLE 3. Public Projects: Alternative Procedure [22030 - 22045] ( Article 3 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## 22044.5. If the commission makes a finding, in accordance with Section 22043, on three separate occasions within a 10-year period, that the work undertaken by a public agency falls within any of the categories described in Section 22042, the commission shall notify the public agency of that finding in writing by certified mail and the public agency shall not use the bidding procedures provided by this article for five years from the date of the commission’s findings. (Added by Stats. 2006, Ch. 192, Sec. 1. Effective January 1, 2007.)
  5. 22045.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 2. Bidding on Public Contracts [22000 - 22045] ( Chapter 2 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## ARTICLE 3. Public Projects: Alternative Procedure [22030 - 22045] ( Article 3 added by Stats. 1983, Ch. 1054, Sec. 1. )

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    The commission must recommend written procedures by January 1, 1985, and the Controller must review them and then adopt or reject them within 90 days after submission.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 2. Bidding on Public Contracts [22000 - 22045] ( Chapter 2 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## ARTICLE 3. Public Projects: Alternative Procedure [22030 - 22045] ( Article 3 added by Stats. 1983, Ch. 1054, Sec. 1. ) ## 22045. (a) No later than January 1, 1985, the commission shall recommend, for adoption by the Controller, written procedures implementing the accounting procedures review provided for in this article. (b) The Controller shall, upon receipt of the commission’s recommendation, review and evaluate the recommended procedures and either formally adopt or reject the recommended procedures within 90 days of submission of the commission. (Added by renumbering Section 21215 by Stats. 1986, Ch. 1019, Sec. 67.)
  6. 2205.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.7. Iran Contracting Act of 2010 [2200 - 2208] ( Chapter 2.7 added by Stats. 2010, Ch. 573, Sec. 1. )

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    If a person is found to have falsely certified compliance with Section 2204, the public entity may report the matter, civil penalties and costs may be imposed, the contract may be terminated, and the person may be barred from bidding for three years.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.7. Iran Contracting Act of 2010 [2200 - 2208] ( Chapter 2.7 added by Stats. 2010, Ch. 573, Sec. 1. ) ## 2205. (a) If the local public entity, or the Department of General Services in the case of state contracts, determines, using credible information available to the public and after providing 90 days written notice and an opportunity to comment in writing for the person to demonstrate that it is not engaged in investment activities in Iran, that the person has submitted a false certification under Section 2204, and the person fails to demonstrate to the local public entity or the Department of General Services that the person has ceased its engagement in the investment activities in Iran within 90 days after the determination of a false certification, the following shall apply: (1) Pursuant to an action under subdivision (b), a civil penalty in an amount that is equal to the greater of two hundred fifty thousand dollars ($250,000) or twice the amount of the contract for which the false certification was made. Only one civil penalty may be imposed with respect to one or more certifications made to any public entity that are false as a result of a particular investment. (2) Termination of an existing contract with the awarding body at the option of the awarding body or the Department of General Services. (3) Ineligibility to bid on a contract for a period of three years from the date of the determination that the person submitted the false certification. (b) The local public entity, or the Department of General Services in the case of state contracts, shall report to the Attorney General the name of the person that the local public entity, or the Department of General Services in the case of state contracts, determines has submitted a false certification under Section 2204, together with its information as to the false certification, and the Attorney General shall determine whether to bring a civil action against the person to collect the penalty described in paragraph (1) of subdivision (a). The awarding body of a local public entity may also report to the city attorney, county counsel, or district attorney the name of the person that the awarding body determines has submitted a false certification under Section 2204, together with its information as to the false certification, and the city attorney, county counsel, or district attorney may determine whether to bring a civil action against the person to collect the penalty described in paragraph (1) of subdivision (a). If it is determined in that action that the person submitted a false certification, the person shall pay all reasonable costs and fees incurred in a civil action, including costs incurred by the awarding body for investigations that led to the finding of the false certification and all reasonable costs and fees incurred by the Attorney General, city attorney, county counsel, or district attorney. Only one civil action against the person to collect the penalty described in paragraph (1) of subdivision (a) may be brought for a false certification on a contract. (c) A civil action to collect the penalties described in paragraph (1) of subdivision (a) must commence within three years from the date the certification is made. (d) An unsuccessful bidder, or any other person other than the awarding body, shall have no right to protest the award of a contract or contract renewal on the basis of a false certification. (e) This act does not create, nor authorize, a private right of action or enforcement of the penalties provided for in this act. (Added by Stats. 2010, Ch. 573, Sec. 1. (AB 1650) Effective January 1, 2011. Conditionally inoperative as prescribed by Stats. 2010, Ch. 573, Sec. 2.)
  7. 22050.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 2.5. Emergency Contracting Procedures [22050- 22050.] ( Chapter 2.5 added by Stats. 1994, Ch. 803, Sec. 88. )

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    This section lets a public agency use emergency contracting without bid notice, but only with the required governing-body vote and findings.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 2.5. Emergency Contracting Procedures [22050- 22050.] ( Chapter 2.5 added by Stats. 1994, Ch. 803, Sec. 88. ) ## 22050. (a) (1) In the case of an emergency, a public agency, pursuant to a four-fifths vote of its governing body, may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts. (2) Before a governing body takes any action pursuant to paragraph (1), it shall make a finding, based on substantial evidence set forth in the minutes of its meeting, that the emergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to the emergency. (b) (1) The governing body, by a four-fifths vote, may delegate, by resolution or ordinance, to the appropriate county administrative officer, city manager, chief engineer, or other nonelected agency officer, the authority to order any action pursuant to paragraph (1) of subdivision (a). (2) If the public agency has no county administrative officer, city manager, chief engineer, or other nonelected agency officer, the governing body, by a four-fifths vote, may delegate to an elected officer the authority to order any action specified in paragraph (1) of subdivision (a). (3) If a person with authority delegated pursuant to paragraph (1) or (2) orders any action specified in paragraph (1) of subdivision (a), that person shall report to the governing body, at its next meeting required pursuant to this section, the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency. (c) (1) If the governing body orders any action specified in subdivision (a), the governing body shall review the emergency action at its next regularly scheduled meeting and, except as specified below, at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action. If the governing body meets weekly, it may review the emergency action in accordance with this paragraph every 14 days. (2) If a person with authority delegated pursuant to subdivision (b) orders any action specified in paragraph (1) of subdivision (a), the governing body shall initially review the emergency action not later than 7 days after the action, or at its next regularly scheduled meeting if that meeting will occur not later than 14 days after the action, and at least at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action, unless a person with authority delegated pursuant to subdivision (b) has terminated that action prior to the governing body reviewing the emergency action and making a determination pursuant to this subdivision. If the governing body meets weekly, it may, after the initial review, review the emergency action in accordance with this paragraph every 14 days. (3) When the governing body reviews the emergency action pursuant to paragraph (1) or (2), it shall terminate the action at the earliest possible date that conditions warrant so that the remainder of the emergency action may be completed by giving notice for bids to let contracts. (d) As used in this section, “public agency” has the same meaning as defined in Section 22002. (e) A three-member governing body may take actions pursuant to subdivision (a), (b), or (c) by a two-thirds vote. (f) This section applies only to emergency action taken pursuant to Sections 20134, 20168, 20205.1, 20213, 20223, 20233, 20253, 20273, 20283, 20293, 20303, 20313, 20321, 20331, 20567, 20586, 20604, 20635, 20645, 20682, 20682.5, 20736, 20751.1, 20806, 20812, 20914, 20918, 20926, 20931, 20941, 20961, 20991, 21020.2, 21024, 21031, 21043, 21061, 21072, 21081, 21091, 21101, 21111, 21121, 21131, 21141, 21151, 21161, 21171, 21181, 21191, 21196, 21203, 21212, 21221, 21231, 21241, 21251, 21261, 21271, 21290, 21311, 21321, 21331, 21341, 21351, 21361, 21371, 21381, 21391, 21401, 21411, 21421, 21431, 21441, 21451, 21461, 21472, 21482, 21491, 21501, 21511, 21521, 21531, 21541, 21552, 21567, 21572, 21581, 21591, 21601, 21618, 21624, 21631, 21641, and 22035. (Amended by Stats. 2024, Ch. 111, Sec. 2. (AB 2634) Effective January 1, 2025.)
  8. 2206.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.7. Iran Contracting Act of 2010 [2200 - 2208] ( Chapter 2.7 added by Stats. 2010, Ch. 573, Sec. 1. )

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    This section says the act fully governs public contracts for goods or services involving a person engaged in investment activities in Iran, and it overrides conflicting local rules on that subject.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.7. Iran Contracting Act of 2010 [2200 - 2208] ( Chapter 2.7 added by Stats. 2010, Ch. 573, Sec. 1. ) ## 2206. This act shall occupy the field with regard to all public contracts for goods or services with a person engaged in investment activities in Iran and shall preempt any law, ordinance, rule, or regulation of any local public entity involving public contracts for goods or services with a person engaged in investment activities in Iran. (Added by Stats. 2010, Ch. 573, Sec. 1. (AB 1650) Effective January 1, 2011. Conditionally inoperative as prescribed by Stats. 2010, Ch. 573, Sec. 2.)
  9. 2207.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.7. Iran Contracting Act of 2010 [2200 - 2208] ( Chapter 2.7 added by Stats. 2010, Ch. 573, Sec. 1. )

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    The Legislature must send a written notice describing this chapter to the U.S. Attorney General within 30 days after the effective date of the act.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.7. Iran Contracting Act of 2010 [2200 - 2208] ( Chapter 2.7 added by Stats. 2010, Ch. 573, Sec. 1. ) ## 2207. The Legislature shall submit to the Attorney General of the United States a written notice describing this chapter within 30 days after the effective date of this act. (Added by Stats. 2010, Ch. 573, Sec. 1. (AB 1650) Effective January 1, 2011. Conditionally inoperative as prescribed by Stats. 2010, Ch. 573, Sec. 2.)
  10. 2208.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.7. Iran Contracting Act of 2010 [2200 - 2208] ( Chapter 2.7 added by Stats. 2010, Ch. 573, Sec. 1. )

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    If part of the act is found invalid or unconstitutional, the rest stays in force.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.7. Iran Contracting Act of 2010 [2200 - 2208] ( Chapter 2.7 added by Stats. 2010, Ch. 573, Sec. 1. ) ## 2208. (a) If any one or more provisions, sections, subdivisions, sentences, clauses, phrases, or words of this act or the application thereof to any person or circumstance is found to be invalid, illegal, unenforceable, or unconstitutional, the same is hereby declared to be severable and the balance of this act shall remain effective and functional notwithstanding such invalidity, illegality, unenforceability, or unconstitutionality. (b) The Legislature hereby declares that it would have passed this act, and each provision, section, subdivision, sentence, clause, phrase, or word thereof, irrespective of the fact that any one or more provisions, sections, subdivisions, sentences, clauses, phrases, or words are declared invalid, illegal, unenforceable, or unconstitutional. (Added by Stats. 2010, Ch. 573, Sec. 1. (AB 1650) Effective January 1, 2011. Conditionally inoperative as prescribed by Stats. 2010, Ch. 573, Sec. 2.)
  11. 22101.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. )

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    The Legislature states that electronic data-processing equipment, goods, and services are unique and important enough to justify separate acquisition authority, and that the Southern California Rapid Transit District has similar needs.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. ) ## 22101. The Legislature has found that electronic data-processing equipment, goods, and services are unique, and of such importance to state programs as to warrant a separate acquisition authority therefor. The Legislature finds that the Southern California Rapid Transit District has needs similar to the state with respect to acquisition of electronic data-processing goods and services. (Added by Stats. 1983, Ch. 586, Sec. 1.)
  12. 22102.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. )

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    For this chapter, “district” means the Southern California Rapid Transit District.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. ) ## 22102. For purposes of this chapter, “district” means the Southern California Rapid Transit District. (Added by Stats. 1983, Ch. 586, Sec. 1.)
  13. 22103.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. )

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    The district must use competitive procurement for electronic data-processing goods and services, unless the goods are uniquely able to meet the district’s needs or an emergency requires immediate acquisition.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. ) ## 22103. (a) Acquisition of electronic data-processing goods and services by the district shall be conducted through competitive means, except when the district determines one of the following: (1) The goods and services proposed for acquisition are the only goods and services which can meet the district’s needs. (2) The goods and services are needed in case of an emergency where immediate acquisition is necessary for the efficient operation and preservation of the district’s services. (b) The mode of acquisition to be used and the procedure to be followed shall be approved by the district which shall adopt appropriate criteria and procedures to ensure compliance with the intent of this chapter. However, the procedure shall provide for issuance by the district of a solicitation document to, and for the submission of proposals by, prospective contractors. (Added by Stats. 1983, Ch. 586, Sec. 1.)
  14. 22104.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. )

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    Local agency contract awards must be based on the most cost-effective proposal, with some flexibility to use criteria other than cost alone.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. ) ## 22104. (a) Contract awards shall be based on the proposal which provides the most cost-effective solution to the district’s requirements, as determined by the evaluation criteria contained in the solicitation document. The evaluation procedures may provide for the selection of a vendor on a basis other than cost alone. (b) Evaluation of proposals for the purpose of determining contract award shall provide for consideration of a proposer’s best financing alternative unless the district determines that a particular financing alternative should not be considered. (c) A vendor may be excluded from proposal processes, if the vendor’s performance with respect to a previously awarded contract has been determined unsatisfactory by the district, provided that the exclusion shall not exceed one year for any one determination of unsatisfactory performance and provided further that any excluded vendor may at any time during the exclusion be reinstated upon demonstration to the district’s satisfaction that the problems which resulted in his or her exclusion have been corrected. (d) To the extent practical, the solicitation documents shall provide for a contract to be written to enable acquisition of additional items to avoid essentially redundant acquisition processes when it can be determined that it is economical to do so. (Added by Stats. 1983, Ch. 586, Sec. 1.)
  15. 22105.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. )

    Verify source ↗

    This section requires protest procedures for acquisitions under the chapter, may limit protest rights to participating proposers, lets the procuring officer decide initial protests, and requires a protestor to file a detailed written statement within 10 calendar days.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. ) ## 22105. Protest procedures shall be provided to allow proposers an opportunity to formally protest any acquisition conducted in accordance with this chapter. Authority to protest may be limited to participating proposers. The procuring officer of the district, or the person designated by the procuring officer, is authorized to consider and decide on initial protests. A decision regarding an initial protest shall be final. If, prior to making an award, any proposer who submitted an offer files a protest with the district against awarding the contract or purchase order on the ground that his or her bid or proposal should have been selected in accordance with the selection criteria in the selection document, the contract or purchase order shall not be awarded until either the protest has been withdrawn or the district has made a final decision as to the action to be taken on the protest. A protestor, within 10 calendar days of filing a protest, shall file with the district a full and complete written statement specifying in detail the grounds of the protest and the facts in support thereof. (Added by Stats. 1983, Ch. 586, Sec. 1.)
  16. 22106.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. )

    Verify source ↗

    If electronic data-processing goods are surplus to a district’s needs, the district must dispose of them in a way that best serves the district’s interests.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. ) ## 22106. Electronic data-processing goods which are determined to be surplus to the district’s needs shall be disposed of in a manner best serving the interests of the district, which may include auction, sale, or transfer to other governmental entities. (Added by Stats. 1983, Ch. 586, Sec. 1.)
  17. 22107.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. )

    Verify source ↗

    The district may create policies and procedures for price negotiation, performance or availability standards, and certain bond or cost-penalty requirements for acquisitions under this chapter.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. ) ## 22107. The district may establish policies and procedures for all of the following: (a) Price negotiation with respect to all acquisitions conducted under this chapter. (b) System or equipment component performance or availability standards, including an assessment of the added cost to the district to receive contractual guarantee of a level of performance. (c) Requirement of a bond or assessment of a cost penalty with respect to a contract or consideration of a contract offered by a vendor whose performance has been determined unsatisfactory by the district. (Added by Stats. 1983, Ch. 586, Sec. 1.)
  18. 22108.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. )

    Verify source ↗

    The district may adopt additional rules and regulations if they are consistent with this chapter.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. ) ## 22108. The district may adopt additional rules and regulations consistent with the provisions of this chapter. (Added by Stats. 1983, Ch. 586, Sec. 1.)
  19. 22109.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. )

    Verify source ↗

    For certain electronic data-processing contracts for a district, the contract may include terms the district deems necessary, but at least 10% of the price must be withheld until final delivery and acceptance, and the contractor must provide a performance bond of at least half the total payable.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3. Acquisition of Electronic Data Processing [22101 - 22109] ( Chapter 3 added by Stats. 1983, Ch. 586, Sec. 1. ) ## 22109. Any contract for electronic data-processing goods and services, to be manufactured or performed by the contractor especially for the district and not suitable for sale to others in the ordinary course of the contractor’s business, may provide for such terms and conditions as the district deems necessary to protect its interests including, but not limited to, progress payments as the work is performed, provided that at least 10 percent of the contract price is required to be withheld until final delivery and acceptance of the goods or services, and that the contractor is required to submit a performance bond of at least one-half the total payable under the contract. (Added by Stats. 1983, Ch. 586, Sec. 1.)
  20. 22150.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3.5. Recycled Product Procurement Mandates Pertaining to Local Governments [22150 - 22154] ( Chapter 3.5 added by Stats. 2005, Ch. 590, Sec. 39. )

    Verify source ↗

    Local public entities must buy recycled products instead of nonrecycled products when quality is equal and recycled products cost the same or less. They may also prefer recycled-product suppliers and decide how large that preference is.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3.5. Recycled Product Procurement Mandates Pertaining to Local Governments [22150 - 22154] ( Chapter 3.5 added by Stats. 2005, Ch. 590, Sec. 39. ) ## 22150. (a) If fitness and quality are equal, each local public entity shall purchase recycled products, as defined in Section 12200, instead of nonrecycled products whenever recycled products are available at the same or a lesser total cost than nonrecycled items. (b) A local public entity may give preference to suppliers of recycled products. (c) A local public entity may define the amount of this preference. (Added by Stats. 2005, Ch. 590, Sec. 39. Effective January 1, 2006.)
  21. 22151.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3.5. Recycled Product Procurement Mandates Pertaining to Local Governments [22150 - 22154] ( Chapter 3.5 added by Stats. 2005, Ch. 590, Sec. 39. )

    Verify source ↗

    When a local government has reserved multiple awards in a bid, it must apply the recycled product preference cost as far as possible.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3.5. Recycled Product Procurement Mandates Pertaining to Local Governments [22150 - 22154] ( Chapter 3.5 added by Stats. 2005, Ch. 590, Sec. 39. ) ## 22151. In bids in which the local government has reserved the right to make multiple awards, the recycled product preference cost shall be applied, to the extent possible, so as to maximize the dollar participation of firms offering recycled products in the contract award. (Added by Stats. 2005, Ch. 590, Sec. 39. Effective January 1, 2006.)
  22. 22152.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3.5. Recycled Product Procurement Mandates Pertaining to Local Governments [22150 - 22154] ( Chapter 3.5 added by Stats. 2005, Ch. 590, Sec. 39. )

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    Local public entities must require businesses to certify the postconsumer-materials content of offered or sold products, and they must remove contract terms that block consideration of recycled products.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3.5. Recycled Product Procurement Mandates Pertaining to Local Governments [22150 - 22154] ( Chapter 3.5 added by Stats. 2005, Ch. 590, Sec. 39. ) ## 22152. (a) All local public entities shall require all business, as defined in Section 12200, to certify in writing the minimum, if not exact, percentage of postconsumer materials in the products, materials, goods, or supplies, offered or sold. All contract provisions impeding the consideration of recycled products shall be deleted in favor of performance standards. (b) With respect to printer or duplication cartridges that comply with the requirements of subdivision (e) of Section 12156, the certification required by this subdivision shall specify that the cartridges so comply. (Added by Stats. 2005, Ch. 590, Sec. 39. Effective January 1, 2006.)
  23. 22153.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3.5. Recycled Product Procurement Mandates Pertaining to Local Governments [22150 - 22154] ( Chapter 3.5 added by Stats. 2005, Ch. 590, Sec. 39. )

    Verify source ↗

    Local public entities must include in printing contracts that the paper used meets the recycled content requirements in Section 12209.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3.5. Recycled Product Procurement Mandates Pertaining to Local Governments [22150 - 22154] ( Chapter 3.5 added by Stats. 2005, Ch. 590, Sec. 39. ) ## 22153. All printing contracts made by any local public entity shall provide that the paper used shall meet the recycled content requirements of Section 12209. (Added by Stats. 2005, Ch. 590, Sec. 39. Effective January 1, 2006.)
  24. 22154.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3.5. Recycled Product Procurement Mandates Pertaining to Local Governments [22150 - 22154] ( Chapter 3.5 added by Stats. 2005, Ch. 590, Sec. 39. )

    Verify source ↗

    Businesses selling products to a local public entity must certify the postconsumer material percentage in writing, and certain printer cartridges must also certify compliance with Section 12156(e).

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 3.5. Recycled Product Procurement Mandates Pertaining to Local Governments [22150 - 22154] ( Chapter 3.5 added by Stats. 2005, Ch. 590, Sec. 39. ) ## 22154. (a) All businesses shall certify in writing to the contracting officer, or his or her representative, the minimum, if not exact, percentage of postconsumer material in the products, materials, goods, or supplies being offered or sold to any local public entity. (b) With respect to printer or duplication cartridges that comply with the requirements of subdivision (e) of Section 12156, the certification required by this section shall specify that the cartridges so comply. (c) A local public entity may waive the certification requirement if the percentage of postconsumer material in the products, materials, goods, or supplies can be verified in a written advertisement, including, but not limited to, a product label, a catalog, or a manufacturer or vendor Internet Web site. (Amended by Stats. 2007, Ch. 130, Sec. 198. Effective January 1, 2008.)
  25. 22160.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

    Verify source ↗

    Local agencies are generally authorized to use design-build for projects, except projects on the state highway system, and this chapter does not give design-build a preference over other procurement methods.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22160. (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 chapter provides general authorization for local agencies to use design-build for projects, excluding projects on the state highway system. (2) This chapter shall not be deemed to provide a preference for the design-build method over other procurement methodologies. (Added by Stats. 2014, Ch. 931, Sec. 14. (SB 785) Effective January 1, 2015. Repealed as of January 1, 2031, pursuant to Section 22169.)
  26. 22161.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

    Verify source ↗

    This section defines terms used in the local agency design-build chapter.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22161. For purposes of this chapter, the following definitions 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 local agency 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) “Design-build” means a project delivery process in which both the design and construction of a project are procured from a single entity. (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 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. (f) “Local agency” means the following: (1) A city, county, or city and county. (2) A special district that operates wastewater facilities, solid waste management facilities, water recycling facilities, or fire protection facilities. (3) Any transit district, included transit district, municipal operator, included municipal operator, any consolidated agency, as described in Section 132353.1 of the Public Utilities Code, any joint powers authority, any county transportation commission created pursuant to Section 130050 of the Public Utilities Code, or any other local or regional agency, responsible for the construction of transit projects. (4) The San Diego Association of Governments, as referenced in the San Diego Regional Transportation Consolidation Act (Chapter 3 (commencing with Section 132350) of Division 12.7 of the Public Utilities Code). (5) The Stanislaus Regional Water Authority. (g) (1) Except as specified in subdivision (h), for a local agency defined in paragraph (1) of subdivision (f), “project” means the construction of a building or buildings and improvements directly related to the construction of a building or buildings, county sanitation wastewater treatment facilities, and park and recreational facilities, but does not include the construction of other infrastructure, including, but not limited to, streets and highways, public rail transit, or water resources facilities and infrastructure. For a local agency defined in paragraph (1) of subdivision (f) that operates wastewater facilities, solid waste management facilities, or water recycling facilities, “project” also means the construction of regional and local wastewater treatment facilities, regional and local solid waste facilities, or regional and local water recycling facilities. (2) For a local agency defined in paragraph (2) of subdivision (f), “project” means the construction of regional and local wastewater treatment facilities, regional and local solid waste facilities, regional and local water recycling facilities, or fire protection facilities. (3) Except as specified in subdivision (h), for a local agency defined in paragraph (3) of subdivision (f), “project” means a transit capital project that begins a project solicitation on or after January 1, 2015. A “project,” as defined by this paragraph, that begins the solicitation process before January 1, 2015, is subject to Article 6.8 (commencing with Section 20209.5) of Chapter 1. “Project,” as defined by this paragraph, does not include state highway construction or local street and road projects. (4) For a local agency defined in paragraph (4) of subdivision (f), “project” has the same meaning as in paragraph (3), and shall also include development projects adjacent, or physically or functionally related, to transit facilities developed or jointly developed by the local agency. (5) For a local agency defined in paragraph (5) of subdivision (f), “project” means the Stanislaus Regional Water Authority’s Regional Surface Water Supply Project. (h) In recognition of the additional transportation funds made available by the Road Repair and Accountability Act of 2017 (Chapter 5 of the Statutes of 2017), and to accelerate the delivery of transportation projects to the public, in addition to the authority provided in other subdivisions of this section, for a local agency defined in paragraph (1) or (3) of subdivision (f), for up to six projects to be selected by the Department of Transportation, a “project” also means construction or rehabilitation of local streets and roads, including, but not limited to, bridge replacement and railroad grade separations. Consistent with Provision 2 of Item 2660-110-0042 of Section 2.00 of the Budget Act of 2016, as amended by Chapter 7 of the Statutes of 2017, three projects shall be reserved for and selected by the Riverside County Transportation Commission, with the first priority for the projects listed in that budget item. (Amended by Stats. 2023, Ch. 201, Sec. 1. (AB 400) Effective January 1, 2024. Repealed as of January 1, 2031, pursuant to Section 22169.)
  27. 22162.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

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    A local agency may use design-build contracting for public works over $1,000,000 if its governing body approves, and must adopt conflict-of-interest guidelines for related services; a separate rule allows certain technology or surveillance contracts with no cost threshold.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22162. (a) Except as provided in subdivision (b), and notwithstanding any other law, a local agency, with approval of its governing body, may procure design-build contracts for public works projects in excess of one million dollars ($1,000,000), awarding the contract either the low bid or the best value, provided that this article shall not apply to any projects on the state highway system. (b) When a local agency described in paragraph (3) of subdivision (f) of Section 22161 awards a contract for the acquisition and installation of technology applications or surveillance equipment designed to enhance safety, disaster preparedness, and homeland security efforts, there shall be no cost threshold and the contract may be awarded to the lowest responsible bidder or by using the best value method. (c) The local agency 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 local agency 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 local agency entering into design-build contracts authorized under this chapter. (Added by Stats. 2014, Ch. 931, Sec. 14. (SB 785) Effective January 1, 2015. Repealed as of January 1, 2031, pursuant to Section 22169.)
  28. 22162.4.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

    Verify source ↗

    A city, county, or city and county may use design-build contracting for certain construction projects, but only after approval by its governing body.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22162.4. Upon approval of its governing body, a city, county, or city and county may use the design-build contracting process described in this chapter to award contracts for construction of projects that are necessary in order to comply with construction-related accessibility standards, as defined in Section 65946 of the Government Code. (Added by Stats. 2022, Ch. 900, Sec. 1. (SB 1354) Effective January 1, 2023. Repealed as of January 1, 2031, pursuant to Section 22169.)
  29. 22162.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

    Verify source ↗

    The Santa Clara Valley Water District may use the design-build contracting process, but only after approval by its governing body, to award contracts for listed project types.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22162.5. Upon approval by its governing body, the Santa Clara Valley Water District may use the design-build contracting process described in this chapter to award a contract for the following projects: (a) Flood protection improvements. (b) Habitat restorations or enhancements. (c) Groundwater recharge or storage facilities. (d) Water treatment facilities. (e) The retrofit, repair, or expansion of existing surface water storage facilities. (Added by Stats. 2017, Ch. 821, Sec. 4. (AB 851) Effective January 1, 2018. Repealed as of January 1, 2031, pursuant to Section 22169.)
  30. 22162.6.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

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    With board approval, the County of Orange may use design-build contracting for certain local projects, and the county is responsible for specified project development and document-preparation services.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22162.6. (a) Upon approval of the board of supervisors, the County of Orange may use the design-build contracting process described in this chapter to award a contract for the following projects: (1) Flood protection improvements. (2) Harbor and beach improvements. (3) Bikeway improvements. (b) In addition to the requirements set forth in Section 22164, for a project authorized under subdivision (a), the county shall be responsible for the performance of, and county employees in Orange County Public Works may perform, project development services, including performance specifications, preliminary engineering, procurement services and the preparation of project reports, and construction inspection services, excluding specialty bridge inspectors. The county shall also be the responsible agency for, and county employees in Orange County Public Works may perform, the preparation of documents that may include, but need not be limited to, the size, type, and desired design character of the project, performance specifications covering quality of materials, equipment, and workmanship, preliminary plans, and any other information deemed necessary to describe adequately the needs of the County of Orange. (c) For a project authorized under subdivision (a), the county shall be limited to no more than one project per year in excess of five million dollars ($5,000,000). (Added by Stats. 2018, Ch. 239, Sec. 1. (AB 2654) Effective January 1, 2019. Repealed as of January 1, 2031, pursuant to Section 22169.)
  31. 22162.7.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

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    The Orange County Flood Control District may use design-build contracting for flood protection improvements if its governing body approves it.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22162.7. (a) Upon approval of the governing body, the Orange County Flood Control District, as defined in Chapter 36 of the Orange County Flood Control Act, Sections 1 to 23 of the Orange County Flood Control Act, Water Code Appendix, may use the design-build contracting process described in this chapter to award a contract for flood protection improvements. (b) In addition to the requirements set forth in Section 22164, for a project authorized under subdivision (a), the Orange County Flood Control District shall be responsible for the performance of, and county employees in Orange County Public Works may perform, project development services, including performance specifications, preliminary engineering, procurement services and the preparation of project reports, and construction inspection services, excluding specialty bridge inspectors. The county shall also be the responsible agency for, and county employees in Orange County Public Works may perform, the preparation of documents that may include, but need not be limited to, the size, type, and desired design character of the project, performance specifications covering quality of materials, equipment, and workmanship, preliminary plans, and any other information deemed necessary to describe adequately the needs of the Orange County Flood Control District. (c) For a project authorized under subdivision (a), the district shall be limited to no more than twelve projects in excess of five million dollars ($5,000,000) prior to January 1, 2025. (Added by Stats. 2018, Ch. 239, Sec. 2. (AB 2654) Effective January 1, 2019. Repealed as of January 1, 2031, pursuant to Section 22169.)
  32. 22162.8.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

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    This section lets the Paradise Irrigation District and the Town of Paradise use design-build contracting for specified water and sewer projects if the stated local approvals are obtained.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22162.8. (a) Upon approval of its governing body, the Paradise Irrigation District may use the design-build contracting process described in this chapter to award a contract for a water conveyance pipeline from the Town of Paradise to the City of Chico. (b) Upon approval of a majority of the Paradise Town Council, the Town of Paradise may use the design-build contracting process described in this chapter to provide for the provision of sewer treatment to the Town of Paradise, including for infrastructure connecting the Town of Paradise to an existing treatment facility. (Added by Stats. 2021, Ch. 689, Sec. 1. (AB 36) Effective January 1, 2022. Repealed as of January 1, 2031, pursuant to Section 22169.)
  33. 22162.9.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

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    The City of Long Beach may use design-build contracting for ADA-compliant curb ramp contracts if its city council approves it, and the city may assign related project work to city staff. The city is limited to 3,000 ramps and $20 million per year, and projects must be completed before January 1, 2025.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22162.9. (a) Upon approval of the city council of the City of Long Beach, the City of Long Beach may use the design-build contracting process described in this chapter to award contracts for curb ramps that are compliant with the Americans with Disabilities Act. (b) In addition to the requirements set forth in Section 22164, for a project authorized under subdivision (a), the city and city employees in the City of Long Beach Public Works Department may perform project development services, including performance specifications, preliminary engineering, procurement services and the preparation of project reports, and construction inspection services, excluding specialty bridge inspections. The city shall also be the responsible agency for, and city employees in the Public Works Department may perform, the preparation of documents that may include, but need not be limited to, the size, type, and desired design character of the project, performance specifications covering quality of materials, equipment, and workmanship, preliminary plans, and any other information deemed necessary to describe adequately the needs of the city. (c) For a project authorized under subdivision (a), the city shall be limited to no more than 3,000 ramps, with the total cost not to exceed twenty million dollars ($20,000,000) per year, that are subject to completion prior to January 1, 2025. (Added by Stats. 2020, Ch. 54, Sec. 1. (AB 2932) Effective September 9, 2020. Repealed as of January 1, 2031, pursuant to Section 22169.)
  34. 22164.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

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    For design-build projects, the local agency must prepare procurement documents and a request for qualifications and proposals, and the design-build entity must meet specified qualification and skilled-workforce conditions to be shortlisted.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22164. The procurement process for the design-build projects shall progress as follows: (a) (1) The local agency 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 local agency’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 local agency 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 local agency to evaluate proposals, the procedure for final selection of the design-build entity, and any other information deemed necessary by the local agency to inform interested parties of the contracting opportunity. (2) Significant factors that the local agency reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, acceptable safety record, and all other nonprice-related factors. (3) A standard template request for statements of qualifications prepared by the local agency. In preparing the standard template, the local agency may consult with the construction industry, the building trades and surety industry, and other local 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 local agency 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 local agency 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 local agency 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 local agency shall prepare a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the local agency. 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 local agency 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 local agency to inform interested parties of the contracting opportunity. (2) Significant factors that the local agency 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 local agency may reserve the right to request proposal revisions and hold discussions and negotiations with responsive proposers, in which case the local agency 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 local agency 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 local agency: (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 local agency may hold discussions or negotiations with responsive proposers using the process articulated in the local agency’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 local agency to have offered the best value to the public. (5) Notwithstanding any other provision of this code, upon issuance of a contract award, the local agency 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 local agency’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. 365. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615. Repealed as of January 1, 2031, pursuant to Section 22169.)
  35. 22165.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

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    Design-build entities must provide payment and performance bonds as required by the local agency, and the contract must require errors and omissions insurance for the project’s design elements.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22165. (a) The design-build entity shall provide payment and performance bonds for the project in the form and in the amount required by the local agency, 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 local agency shall develop a standard form of payment and performance bond for its design-build projects. (Added by Stats. 2014, Ch. 931, Sec. 14. (SB 785) Effective January 1, 2015. Repealed as of January 1, 2031, pursuant to Section 22169.)
  36. 22166.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

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    Local agencies may require certain subcontractors to be named in design-build proposals, and design-build entities must follow a public subcontracting process for qualifying work after contract award.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22166. (a) The local agency, 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 local agency, 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. 14. (SB 785) Effective January 1, 2015. Repealed as of January 1, 2031, pursuant to Section 22169.)
  37. 22167.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

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    This section limits how much retention money a local agency or design-build entity may withhold in certain design-build project contracts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22167. (a) If the local agency elects to award a project pursuant to this article, retention proceeds withheld by the local agency 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 local agency 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 local agency and the design-build entity from any payment made by the design-build entity to the subcontractor. (Added by Stats. 2014, Ch. 931, Sec. 14. (SB 785) Effective January 1, 2015. Repealed as of January 1, 2031, pursuant to Section 22169.)
  38. 22168.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

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    This section says the article does not affect, expand, alter, or limit other legal rights or remedies.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22168. Nothing in this article affects, expands, alters, or limits any rights or remedies otherwise available at law. (Added by Stats. 2014, Ch. 931, Sec. 14. (SB 785) Effective January 1, 2015. Repealed as of January 1, 2031, pursuant to Section 22169.)
  39. 22169.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. )

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

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4. Local Agency Design-Build Projects [22160 - 22169] ( Chapter 4 added by Stats. 2014, Ch. 931, Sec. 14. ) ## 22169. This chapter shall remain in effect only until January 1, 2031, and as of that date is repealed. (Amended by Stats. 2023, Ch. 201, Sec. 2. (AB 400) Effective January 1, 2024. Repealed as of January 1, 2031, by its own provisions. Note: Repeal affects Chapter 4, commencing with Section 22160.)
  40. 22170.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. )

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    This section defines key terms used in the chapter on local agency progressive design-build contracting.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. ) ## 22170. For purposes of this chapter, the following definitions apply: (a) (1) “Best value” means a value determined by evaluation of objective criteria that may include, but are not limited to, price, features, function, life-cycle costs, experience, and past performance. (2) A best value determination may involve the selection of the lowest cost proposal meeting the interests of the local agency and the objectives of the project. (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) “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. (d) “Design-build project” means any project that treats, pumps, stores, or conveys water, wastewater, recycled water, advanced treated water, or supporting facilities using the progressive design-build construction procurement process described in this chapter. (e) “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. (f) “Guaranteed maximum price” means the maximum payment amount agreed upon by the local agency 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. (g) “Local agency” means a city, county, city and county, or special district authorized by law to provide for the production, storage, supply, treatment, or distribution of any water from any source. (h) “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. (i) “Qualifications-based selection” means the process by which the local agency solicits for services from the design-build entities and that price is not the sole factor as the basis of award. (Added by Stats. 2022, Ch. 243, Sec. 1. (SB 991) Effective January 1, 2023. Repealed as of January 1, 2029, pursuant to Section 22174.)
  41. 22171.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. )

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    A local agency may use progressive design-build contracts for up to 15 public works projects, if each project is over $5,000,000.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. ) ## 22171. A local agency may procure progressive design-build contracts and use the progressive design-build contracting process described in this chapter for up to 15 public works projects in excess of five million dollars ($5,000,000) for each project. (Added by Stats. 2022, Ch. 243, Sec. 1. (SB 991) Effective January 1, 2023. Repealed as of January 1, 2029, pursuant to Section 22174.)
  42. 22171.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. )

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    A local agency that enters design-build contracts must develop guidelines for a standard conflict-of-interest policy.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. ) ## 22171.5. A local agency entering into design-build contracts authorized under this chapter 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 local agency 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. (Added by Stats. 2022, Ch. 243, Sec. 1. (SB 991) Effective January 1, 2023. Repealed as of January 1, 2029, pursuant to Section 22174.)
  43. 22172.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. )

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    Local agencies must run a qualifications-based process for progressive design-build projects, including a request for qualifications, required template information, review of submissions, and public announcement of awards.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. ) ## 22172. The procurement process for progressive design-build projects shall progress as follows: (a) The local agency 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 local agency’s needs, including the expected cost range, the methodology that will be used by the local agency 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 local agency to inform interested parties of the contracting opportunity. (2) Significant factors that the local agency reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other non-price-related factors. The local agency may require that a preliminary cost 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 standard template request for statements of qualifications prepared by the local agency. In preparing the standard template, the local agency may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this chapter. 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 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 local agency 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 local agency 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 local agency before January 1, 2023. (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 provided in paragraph (1) of subdivision (b) of Section 2500. (c) At the close of the solicitation period, the local agency shall review the submissions. The local agency may evaluate submissions based solely upon the information provided in each design-build entity’s statement of qualifications. The local agency 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 local agency 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 local agency’s contract award and the contract file shall provide sufficient information to satisfy an external audit. (Added by Stats. 2022, Ch. 243, Sec. 1. (SB 991) Effective January 1, 2023. Repealed as of January 1, 2029, pursuant to Section 22174.)
  44. 22172.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. )

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    A design-build entity must provide required payment and performance bonds, and the local agency must create a standard bond form for its design-build projects.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. ) ## 22172.1. (a) The design-build entity shall provide payment and performance bonds for the project in the form and in the amount required by the local agency, 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 local agency shall develop a standard form of payment and performance bond for its design-build projects. (Added by Stats. 2022, Ch. 243, Sec. 1. (SB 991) Effective January 1, 2023. Repealed as of January 1, 2029, pursuant to Section 22174.)
  45. 22172.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. )

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    A local agency may use a design-build contract process, amend the contract in certain situations, and allocate cost overruns to the design-build entity under a guaranteed maximum price.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. ) ## 22172.2. (a) After selecting a design-build entity based upon qualifications, the local agency 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) Upon agreement of the guaranteed maximum price for the project, the local agency, at its sole and absolute discretion, may amend its contract with the design build entity to contract for the remaining design, preconstruction, and construction activities sufficient to complete and close out the project, consistent with the guaranteed maximum price. In the event that there are unforeseen site conditions, the local agency may amend its contract with the design build entity accordingly and consistent with the guaranteed maximum price, to enable the entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project. (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 unless there is a prior written agreement concerning the sharing of these funds. For purposes of this section, cost shall include the design build entity’s direct costs, general conditions, overhead, and fee. (c) (1) If the local agency and the design-build entity do not reach agreement on a guaranteed maximum price, or the local agency otherwise elects not to amend the design-build entity’s contract to complete the remaining work, the local agency may solicit proposals to complete the project from firms that submitted statements of qualifications pursuant to Section 22172. The local agency may also, upon written determination that it is in the best interest of the city, county, city and county, or special district, as applicable, to do so, formally solicit proposals from other design-build entities, and contract award shall be made on a best value basis. (2) The design professionals responsible for performing design services on behalf of a design build entity that has been replaced pursuant to paragraph (1) shall have sole liability for their design errors and omissions, provided the local agency elects to use their complete and stamped designs with subsequent design build entities or licensed contractors. (Added by Stats. 2022, Ch. 243, Sec. 1. (SB 991) Effective January 1, 2023. Repealed as of January 1, 2029, pursuant to Section 22174.)
  46. 22172.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. )

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    This section lets a local agency identify subcontractors in a design-build request for qualifications, and it sets rules for how a design-build entity must solicit and award certain construction subcontracts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. ) ## 22172.3. (a) The local agency, 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 for projects with a contract value of greater than or equal to ten million dollars ($10,000,000). (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 local agency, 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 on a best value basis. 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. (d) A construction subcontractor licensed pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code that provides design services used on a project authorized by this chapter shall not be subject to any liability arising from their design if the construction subcontract for that design is not performed by that subcontractor. (Added by Stats. 2022, Ch. 243, Sec. 1. (SB 991) Effective January 1, 2023. Repealed as of January 1, 2029, pursuant to Section 22174.)
  47. 22172.4.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. )

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    This section limits how much retention a local agency or design-build entity may withhold on certain design-build projects.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. ) ## 22172.4. (a) If the local agency elects to award a project pursuant to this chapter, retention proceeds withheld by the local agency 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 local agency 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 local agency and the design-build entity from any payment made by the design-build entity to the subcontractor. (Added by Stats. 2022, Ch. 243, Sec. 1. (SB 991) Effective January 1, 2023. Repealed as of January 1, 2029, pursuant to Section 22174.)
  48. 22172.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. )

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    Local agencies using the progressive design-build process must send a report to the Legislature by January 1, 2028.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. ) ## 22172.5. (a) Notwithstanding Section 10231.5 of the Government Code, no later than January 1, 2028, a local agency that uses the progressive design-build process pursuant to this chapter shall submit to the appropriate policy and fiscal committees of the Legislature a report on the use of the progressive design-build process. (b) The report shall include, but is not limited to, the following information: (1) A description of the project or projects awarded using the progressive design-build process. (2) The contract award amounts. (3) The design-build entities awarded the project or projects. (4) A description of any written protests concerning any aspect of the solicitation, bid, or award of the contracts, including the resolution of the protests. (5) A description of the prequalification process. (6) 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. (7) 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 local agency. (8) The number of specialty subcontractors listed by construction trade type, on each project, that meet the definition of a small business, as specified in paragraph (1) of subdivision (d) of Section 14837 of the Government Code. (9) The number of specialty subcontractors listed by construction trade type, on each project, that meet the definition of a microbusiness, as specified in paragraph (2) of subdivision (d) of Section 14837 of the Government Code. (10) If a project awarded under this chapter has been completed, an assessment of the project performance, including, but not limited to, a summary of any delays or cost increases. (c) The report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code. (Added by Stats. 2022, Ch. 243, Sec. 1. (SB 991) Effective January 1, 2023. Repealed as of January 1, 2029, pursuant to Section 22174.)
  49. 22173.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. )

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    This section says the chapter does not affect, expand, alter, or limit other rights or remedies available at law.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. ) ## 22173. Nothing in this chapter affects, expands, alters, or limits any rights or remedies otherwise available at law. (Added by Stats. 2022, Ch. 243, Sec. 1. (SB 991) Effective January 1, 2023. Repealed as of January 1, 2029, pursuant to Section 22174.)
  50. 22174.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. )

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    This chapter stays in force only until January 1, 2029, when it is repealed.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.1. Local Agency Progressive Design-Build Contracting [22170 - 22174] ( Chapter 4.1 added by Stats. 2022, Ch. 243, Sec. 1. ) ## 22174. This chapter shall remain in effect only until January 1, 2029, and as of that date is repealed. (Added by Stats. 2022, Ch. 243, Sec. 1. (SB 991) Effective January 1, 2023. Repealed as of January 1, 2029, by its own provisions. Note: Repeal affects Chapter 4.1, commencing with Section 22170.)
  51. 22175.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.5. Civic Openness in Negotiations [22175 - 22178] ( Chapter 4.5 added by Stats. 2015, Ch. 714, Sec. 1. )

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    This chapter is named the Civic Reporting Openness in Negotiations Efficiency Act, or CRONEY, 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 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.5. Civic Openness in Negotiations [22175 - 22178] ( Chapter 4.5 added by Stats. 2015, Ch. 714, Sec. 1. ) ## 22175. This chapter shall be known, and may be cited, as the Civic Reporting Openness in Negotiations Efficiency Act, or CRONEY. (Added by Stats. 2015, Ch. 714, Sec. 1. (SB 331) Effective January 1, 2016.)
  52. 22176.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.5. Civic Openness in Negotiations [22175 - 22178] ( Chapter 4.5 added by Stats. 2015, Ch. 714, Sec. 1. )

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    This section defines a “COIN ordinance” as a local ordinance that requires certain transparency and analysis steps during collective bargaining.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.5. Civic Openness in Negotiations [22175 - 22178] ( Chapter 4.5 added by Stats. 2015, Ch. 714, Sec. 1. ) ## 22176. As used in this chapter, “civic openness in negotiations ordinance” or “COIN ordinance” means an ordinance adopted by a city, county, city and county, or special district that requires any of the following as a part of any collective bargaining process undertaken pursuant to the Meyers-Milias-Brown Act (Chapter 10 (commencing with Section 3500) of Division 4 of Title 1 of the Government Code): (a) The preparation of an independent economic analysis describing the fiscal costs of benefit and pay components currently provided to members of a recognized employee organization, as defined in Section 3501 of the Government Code. (b) The completion of the independent economic analysis prior to the presentation of an opening proposal by the public employer. (c) Availability for review by the public of the independent economic analysis before presentation of an opening proposal by the public employer. (d) Updating of the independent economic analysis to reflect the annual or cumulative costs of each proposal made by the public employer or recognized employee organization. (e) Updating of the independent economic analysis to reflect any absolute amount or change from the current actuarially computed unfunded liability associated with the pension or postretirement health benefits. (f) The report from a closed session of a meeting of the public employer’s governing body of offers, counteroffers, or supposals made by the public employer or the recognized employee organization and communicated during that closed session. (g) The report from a closed session of a meeting of the public employer’s governing body of any list of names of persons in attendance during any negotiations session, the date of the session, the length of the session, the location of the session, or pertinent facts regarding the negotiations that occurred during a session. (Added by Stats. 2015, Ch. 714, Sec. 1. (SB 331) Effective January 1, 2016.)
  53. 22177.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.5. Civic Openness in Negotiations [22175 - 22178] ( Chapter 4.5 added by Stats. 2015, Ch. 714, Sec. 1. )

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    This chapter applies only to certain local agencies with an effective COIN ordinance, and it stops applying if that ordinance is suspended, repealed, or revoked.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.5. Civic Openness in Negotiations [22175 - 22178] ( Chapter 4.5 added by Stats. 2015, Ch. 714, Sec. 1. ) ## 22177. (a) This chapter applies only to a city, county, city and county, or special district that has adopted a COIN ordinance, which is effective and operative. This chapter shall not apply if the city, county, city and county, or special district suspends, repeals, or revokes its COIN ordinance. (b) This chapter shall not apply to a contract if the contract is required to respond to, recover from, or mitigate the effects of any of the following: (1) A temporary public safety emergency declared by the chief law enforcement officer of a city, county, city and county, or special district. (2) A state of war emergency, state of emergency, or local emergency, as those terms are defined in Section 8558 of the Government Code. (c) This chapter shall not apply to a renewal of a contract if the employees performing the services are covered by a collective bargaining agreement that is governed by the National Labor Relations Act (29 U.S.C. Sec. 151 et seq.). (Added by Stats. 2015, Ch. 714, Sec. 1. (SB 331) Effective January 1, 2016.)
  54. 22178.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.5. Civic Openness in Negotiations [22175 - 22178] ( Chapter 4.5 added by Stats. 2015, Ch. 714, Sec. 1. )

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    This section requires public disclosure and review steps for certain local-government contracts over $250,000.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.5. Civic Openness in Negotiations [22175 - 22178] ( Chapter 4.5 added by Stats. 2015, Ch. 714, Sec. 1. ) ## 22178. (a) This chapter shall apply to any contracts with a value of at least two hundred fifty thousand dollars ($250,000), and to any contracts with a person or entity, or related person or entity, with a cumulative value of at least two hundred fifty thousand dollars ($250,000) within the fiscal year of the city, county, city and county, or special district, being negotiated between the city, county, city and county, or special district, and any person or entity that seeks to provide services or goods to the city, county, city and county, or special district, in the following areas: accounting, financing, hardware and software maintenance, health care, human resources, human services, information technology, telecommunications, janitorial maintenance, legal services, lobbying, marketing, office equipment maintenance, passenger vehicle maintenance, property leasing, public relations, public safety, social services, transportation, or waste removal. (b) The city, county, city and county, or special district shall designate an unbiased independent auditor to review the cost of any proposed contract. The independent auditor shall prepare a report on the cost of the contract and provide the report to all parties and make it available to the public before the governing body takes any action to approve or disapprove the contract. The report shall comply with the following: (1) The report shall include a recommendation regarding the viability of the contract, including any supplemental data upon which the report is based, and shall determine the fiscal impacts attributable to each term and condition of the contract. (2) The report shall be made available to the public at least 30 days before the issue can be heard before the governing body and at least 60 days before any action to approve or disapprove the contract by the governing body. (3) Any proposed changes to the contract after it has been approved by the governing body shall adhere to the same approval requirements as the original contract. The changes shall not go into effect until all of the requirements of this subdivision are met. (c) The city, county, city and county, or special district shall disclose all offers and counteroffers to the public within 24 hours on its Internet Web site. (d) Before approving any contract, the city, county, city and county, or special district shall release a list of names of all persons in attendance, whether in person or by electronic means, during any negotiation session regarding the contract, the date of the session, the length of the session, the location where the session took place, and any pertinent facts regarding the negotiations that occurred in that session. (e) Representatives of the governing body shall advise the governing body of all offers, counteroffers, information, or statements of position discussed by the contracting person or entity and city, county, city and county, or special district representatives participating in negotiations regarding any contract. (f) Each governing body member and staff members of governing body offices shall disclose publicly all verbal, written, electronic, or other communications regarding a subject matter related to the negotiations or pending negotiations they have had with any official or unofficial representative of the private entity within 24 hours after the communication occurs. (g) A final governing body determination regarding approval of any contract shall be undertaken only after the matter has been heard at a minimum of two meetings of the governing body wherein the public has had the opportunity to review and comment on the matter. (Added by Stats. 2015, Ch. 714, Sec. 1. (SB 331) Effective January 1, 2016.)
  55. 22180.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. )

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    This section defines key terms used in Chapter 4.6 for transit progressive design-build contracting.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. ) ## 22180. For purposes of this chapter, the following definitions apply: (a) (1) “Best value” means a value determined by evaluation of objective criteria that may include, but are not limited to, price, features, function, life-cycle costs, experience, and past performance. (2) A best value determination may involve the selection of the lowest cost proposal meeting the interests of the local agency and the objectives of the project. (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) “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. (d) “Design-build project” means a project using the progressive design-build construction procurement process described in this chapter. (e) “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. (f) “Guaranteed maximum price” means the maximum payment amount agreed upon by the local agency 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. (g) “Local agency” means any of the following: (1) A transit district, included transit district, municipal operator, included municipal operator, or a consolidated agency, as described in Section 132353.1 of the Public Utilities Code. (2) A joint powers authority formed to provide transit service, or a county transportation commission created pursuant to Section 130050, 130050.1, or 130050.2 of the Public Utilities Code. (3) A regional transportation agency, as defined in subdivision (i) of Section 6820. (4) A local or regional agency responsible for the construction of transit projects. (h) “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. (i) “Qualifications-based selection” means the process by which the local agency solicits for services from the design-build entities and that price is not the sole factor as the basis of award. (Added by Stats. 2023, Ch. 310, Sec. 1. (SB 617) Effective January 1, 2024. Repealed as of January 1, 2029, pursuant to Section 22180.11)
  56. 22180.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. )

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    A local agency may use progressive design-build contracts for up to 10 public works projects, if each project is over $5,000,000.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. ) ## 22180.1. A local agency may procure progressive design-build contracts and use the progressive design-build contracting process described in this chapter for up to 10 public works projects in excess of five million dollars ($5,000,000) for each project. (Added by Stats. 2023, Ch. 310, Sec. 1. (SB 617) Effective January 1, 2024. Repealed as of January 1, 2029, pursuant to Section 22180.11)
  57. 22180.10.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. )

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    This section says the chapter does not affect, expand, alter, or limit 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 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. ) ## 22180.10. Nothing in this chapter affects, expands, alters, or limits any rights or remedies otherwise available at law. (Added by Stats. 2023, Ch. 310, Sec. 1. (SB 617) Effective January 1, 2024. Repealed as of January 1, 2029, pursuant to Section 22180.11)
  58. 22180.11.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. )

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    This chapter stays in effect only until January 1, 2029, and is repealed on that date.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. ) ## 22180.11. This chapter shall remain in effect only until January 1, 2029, and as of that date is repealed. (Added by Stats. 2023, Ch. 310, Sec. 1. (SB 617) Effective January 1, 2024. Repealed as of January 1, 2029, by its own provisions. Note: Repeal affects Ch. 4.6, commencing with Section 22180.)
  59. 22180.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. )

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    A local agency using this chapter’s design-build contracting must develop guidelines for a standard conflict-of-interest policy.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. ) ## 22180.2. A local agency entering into design-build contracts authorized under this chapter 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 local agency 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. (Added by Stats. 2023, Ch. 310, Sec. 1. (SB 617) Effective January 1, 2024. Repealed as of January 1, 2029, pursuant to Section 22180.11)
  60. 22180.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. )

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    Local agencies must issue a request for qualifications for progressive design-build projects and follow specified selection and public award procedures.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. ) ## 22180.3. The procurement process for progressive design-build projects shall progress as follows: (a) The local agency 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 local agency’s needs, including the expected cost range, the methodology that will be used by the local agency 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 local agency to inform interested parties of the contracting opportunity. (2) Significant factors that the local agency reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other nonprice-related factors. The local agency may require that a preliminary cost 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 standard template request for statements of qualifications prepared by the local agency. In preparing the standard template, the local agency may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this chapter. 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 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 local agency 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 local agency 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 local agency before January 1, 2023. (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 provided in paragraph (1) of subdivision (b) of Section 2500. (c) At the close of the solicitation period, the local agency shall review the submissions. The local agency may evaluate submissions based solely upon the information provided in each design-build entity’s statement of qualifications. The local agency 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 local agency 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 local agency’s contract award and the contract file shall provide sufficient information to satisfy an external audit. (Added by Stats. 2023, Ch. 310, Sec. 1. (SB 617) Effective January 1, 2024. Repealed as of January 1, 2029, pursuant to Section 22180.11)
  61. 22180.4.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. )

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

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. ) ## 22180.4. (a) The design-build entity shall provide payment and performance bonds for the project in the form and in the amount required by the local agency, 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 local agency shall develop a standard form of payment and performance bond for its design-build projects. (Added by Stats. 2023, Ch. 310, Sec. 1. (SB 617) Effective January 1, 2024. Repealed as of January 1, 2029, pursuant to Section 22180.11)
  62. 22180.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. )

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    A local agency may use a design-build contract, direct work to start, amend the contract to finish the project, or seek new proposals; if remaining costs exceed the guaranteed maximum price, the design-build entity bears the excess.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. ) ## 22180.5. (a) After selecting a design-build entity based upon qualifications, the local agency 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) Upon agreement of the guaranteed maximum price for the project, the local agency, at its sole and absolute discretion, may amend its contract with the design-build entity to contract for the remaining design, preconstruction, and construction activities sufficient to complete and close out the project, consistent with the guaranteed maximum price. In the event that there are unforeseen site conditions, the local agency may amend its contract with the design-build entity accordingly and consistent with the guaranteed maximum price, to enable the entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project. (2) If the cost for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the 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 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 unless there is a prior written agreement concerning the sharing of these funds. For purposes of this section, cost shall include the design-build entity’s direct costs, general conditions, overhead, and fee. (c) (1) If the local agency and the design-build entity do not reach agreement on a guaranteed maximum price, or the local agency otherwise elects not to amend the design-build entity’s contract to complete the remaining work, the local agency may solicit proposals to complete the project from firms that submitted statements of qualifications pursuant to Section 22180.3. The local agency may also, upon written determination that it is in the best interest of the city, county, city and county, or special district, as applicable, to do so, formally solicit proposals from other design-build entities, and the contract award shall be made on a best value basis. (2) The design professionals responsible for performing design services on behalf of a design-build entity that has been replaced pursuant to paragraph (1) shall have sole liability for their design errors and omissions, provided the local agency elects to use their complete and stamped designs with subsequent design-build entities or licensed contractors. (Amended by Stats. 2024, Ch. 80, Sec. 109. (SB 1525) Effective January 1, 2025. Repealed as of January 1, 2029, pursuant to Section 22180.11)
  63. 22180.6.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. )

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    This section lets a local agency set subcontractor qualification rules in design-build requests and requires certain subcontract award procedures for larger projects.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. ) ## 22180.6. (a) The local agency, 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 for projects with a contract value greater than or equal to ten million dollars ($10,000,000). (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 local agency, 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 on a best value basis. 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. (d) A construction subcontractor licensed pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code that provides design services used on a project authorized by this chapter shall not be subject to any liability arising from their design if the construction subcontract for that design is not performed by that subcontractor. (Added by Stats. 2023, Ch. 310, Sec. 1. (SB 617) Effective January 1, 2024. Repealed as of January 1, 2029, pursuant to Section 22180.11)
  64. 22180.7.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. )

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    Local agencies may not withhold more than 5% retention from a design-build entity when a required bond is in the solicitation, and subcontract retention generally cannot exceed the prime contract percentage.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. ) ## 22180.7. (a) If the local agency elects to award a project pursuant to this chapter, retention proceeds withheld by the local agency 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 local agency 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 local agency and the design-build entity from any payment made by the design-build entity to the subcontractor. (Added by Stats. 2023, Ch. 310, Sec. 1. (SB 617) Effective January 1, 2024. Repealed as of January 1, 2029, pursuant to Section 22180.11)
  65. 22180.8.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. )

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    A local agency using the progressive design-build process must submit a report on that process to the Legislature’s policy and fiscal committees by January 1, 2028.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. ) ## 22180.8. (a) Notwithstanding Section 10231.5 of the Government Code, no later than January 1, 2028, a local agency that uses the progressive design-build process pursuant to this chapter shall submit to the appropriate policy and fiscal committees of the Legislature a report on the use of the progressive design-build process. (b) The report shall include, but is not limited to, the following information: (1) A description of the project or projects awarded using the progressive design-build process. (2) The contract award amounts. (3) The design-build entities awarded the project or projects. (4) A description of any written protests concerning any aspect of the solicitation, bid, or award of the contracts, including the resolution of the protests. (5) A description of the prequalification process. (6) 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. (7) 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 local agency. (8) The number of specialty subcontractors listed by construction trade type, on each project, that meet the definition of a small business, as specified in paragraph (1) of subdivision (d) of Section 14837 of the Government Code. (9) The number of specialty subcontractors listed by construction trade type, on each project, that meet the definition of a microbusiness, as specified in paragraph (2) of subdivision (d) of Section 14837 of the Government Code. (10) If a project awarded under this chapter has been completed, an assessment of the project performance, including, but not limited to, a summary of any delays or cost increases. (c) The report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code. (Added by Stats. 2023, Ch. 310, Sec. 1. (SB 617) Effective January 1, 2024. Repealed as of January 1, 2029, pursuant to Section 22180.11)
  66. 22180.9.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. )

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    This section says the progressive design-build authorization does not cover construction inspection services for projects on or affecting the state highway system.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.6. Transit Progressive Design-Build Contracting [22180 - 22180.11] ( Chapter 4.6 added by Stats. 2023, Ch. 310, Sec. 1. ) ## 22180.9. The authorization to use the progressive design-build contracting process pursuant to this chapter does not include the authority to perform construction inspection services for projects on, or interfacing with, the state highway system. Construction inspection services for those projects shall be performed by the Department of Transportation pursuant to Part 5 (commencing with Section 14000) of Division 3 of Title 2 of the Government Code, consistent with Section 91.2 of the Streets and Highways Code. (Added by Stats. 2023, Ch. 310, Sec. 1. (SB 617) Effective January 1, 2024. Repealed as of January 1, 2029, pursuant to Section 22180.11)
  67. 22185.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. )

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    This section defines key terms for local agency design-build contracting, including best value, construction subcontract, design-build entity, design-build project, design-build team, guaranteed maximum price, local agency, progressive design-build, and qualifications-based selection.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. ) ## 22185. For purposes of this chapter, the following definitions apply: (a) (1) “Best value” means a value determined by evaluation of objective criteria that may include, but are not limited to, price, features, function, life-cycle costs, experience, and past performance. (2) A best value determination may involve the selection of the lowest cost proposal meeting the interests of the local agency and the objectives of the project. (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) “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. (d) “Design-build project” means any project using the progressive design-build construction procurement process described in this chapter, but does not include projects on state-owned or state-operated facilities. (e) “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. (f) “Guaranteed maximum price” means the maximum payment amount agreed upon by the local agency 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. (g) “Local agency” means a city, county, city and county, or special district. (h) “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. (i) “Qualifications-based selection” means the process by which the local agency solicits for services from the design-build entities and that price is not the sole factor as the basis of award. (Added by Stats. 2023, Ch. 500, Sec. 1. (SB 706) Effective January 1, 2024. Repealed as of January 1, 2030, pursuant to Section 22185.11.)
  68. 22185.1.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. )

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    A local agency may use progressive design-build contracting for up to 10 public works projects, but only for projects over $5,000,000 each.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. ) ## 22185.1. A local agency may procure progressive design-build contracts and use the progressive design-build contracting process described in this chapter for up to 10 public works projects in excess of five million dollars ($5,000,000) for each project. (Added by Stats. 2023, Ch. 500, Sec. 1. (SB 706) Effective January 1, 2024. Repealed as of January 1, 2030, pursuant to Section 22185.11.)
  69. 22185.10.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. )

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    This section says the chapter does not change 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 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. ) ## 22185.10. Nothing in this chapter affects, expands, alters, or limits any rights or remedies otherwise available at law. (Added by Stats. 2023, Ch. 500, Sec. 1. (SB 706) Effective January 1, 2024. Repealed as of January 1, 2030, pursuant to Section 22185.11.)
  70. 22185.11.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. )

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    This chapter stays in effect only until January 1, 2030, and is repealed on that date.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. ) ## 22185.11. This chapter shall remain in effect only until January 1, 2030, and as of that date is repealed. (Added by Stats. 2023, Ch. 500, Sec. 1. (SB 706) Effective January 1, 2024. Repealed as of January 1, 2030, by its own provisions. Note: Repeal affects Ch. 4.7, commencing with Section 22185.)
  71. 22185.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. )

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    A local agency using design-build contracts must develop guidelines for a standard conflict-of-interest policy.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. ) ## 22185.2. A local agency entering into design-build contracts authorized under this chapter 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 local agency 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. (Added by Stats. 2023, Ch. 500, Sec. 1. (SB 706) Effective January 1, 2024. Repealed as of January 1, 2030, pursuant to Section 22185.11.)
  72. 22185.3.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. )

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    Local agencies must run a qualifications-based process for progressive design-build projects, including issuing a request for qualifications and publicly announcing the award.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. ) ## 22185.3. The procurement process for progressive design-build projects shall progress as follows: (a) The local agency 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 local agency’s needs, including the expected cost range, the methodology that will be used by the local agency 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 local agency to inform interested parties of the contracting opportunity. (2) Significant factors that the local agency reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other non-price-related factors. The local agency may require that a preliminary cost 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 standard template request for statements of qualifications prepared by the local agency. In preparing the standard template, the local agency may consult with the construction industry, the building trades and surety industry, and other local agencies interested in using the authorization provided by this chapter. 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 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 local agency 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 local agency 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 local agency before January 1, 2023. (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 provided in paragraph (1) of subdivision (b) of Section 2500. (c) At the close of the solicitation period, the local agency shall review the submissions. The local agency may evaluate submissions based solely upon the information provided in each design-build entity’s statement of qualifications. The local agency 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 local agency 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 local agency’s contract award and the contract file shall provide sufficient information to satisfy an external audit. (Added by Stats. 2023, Ch. 500, Sec. 1. (SB 706) Effective January 1, 2024. Repealed as of January 1, 2030, pursuant to Section 22185.11.)
  73. 22185.4.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. )

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    A design-build entity must provide required payment and performance bonds, the contract must require errors and omissions insurance, and the local agency 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 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. ) ## 22185.4. (a) The design-build entity shall provide payment and performance bonds for the project in the form and in the amount required by the local agency, 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 local agency shall develop a standard form of payment and performance bond for its design-build projects. (Added by Stats. 2023, Ch. 500, Sec. 1. (SB 706) Effective January 1, 2024. Repealed as of January 1, 2030, pursuant to Section 22185.11.)
  74. 22185.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. )

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    A local agency may start or expand a design-build contract in stages, and the design-build entity bears overruns above the guaranteed maximum price unless a written sharing agreement says otherwise.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. ) ## 22185.5. (a) After selecting a design-build entity based upon qualifications, the local agency 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) Upon agreement of the guaranteed maximum price for the project, the local agency, at its sole and absolute discretion, may amend its contract with the design-build entity to contract for the remaining design, preconstruction, and construction activities sufficient to complete and close out the project, consistent with the guaranteed maximum price. In the event that there are unforeseen site conditions, the local agency may amend its contract with the design-build entity accordingly and consistent with the guaranteed maximum price, to enable the entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project. (2) If the cost for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the 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 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 unless there is a prior written agreement concerning the sharing of these funds. For purposes of this section, cost shall include the design-build entity’s direct costs, general conditions, overhead, and fee. (c) (1) If the local agency and the design-build entity do not reach agreement on a guaranteed maximum price, or the local agency otherwise elects not to amend the design-build entity’s contract to complete the remaining work, the local agency may solicit proposals to complete the project from firms that submitted statements of qualifications pursuant to Section 22185.3. The local agency may also, upon written determination that it is in the best interest of the city, county, city and county, or special district, as applicable, to do so, formally solicit proposals from other design-build entities, and contract award shall be made on a best value basis. (2) The design professionals responsible for performing design services on behalf of a design-build entity that has been replaced pursuant to paragraph (1) shall have sole liability for their design errors and omissions, provided the local agency elects to use their complete and stamped designs with subsequent design-build entities or licensed contractors. (Amended by Stats. 2024, Ch. 80, Sec. 110. (SB 1525) Effective January 1, 2025. Repealed as of January 1, 2030, pursuant to Section 22185.11.)
  75. 22185.6.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. )

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    This section lets a local agency name subcontractor types in a design-build request, and requires the design-build entity to follow a public notice, qualification, and best-value process for certain larger construction subcontracts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. ) ## 22185.6. (a) The local agency, 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 for projects with a contract value of greater than or equal to ten million dollars ($10,000,000). (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 local agency, 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 on a best value basis. 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. (d) A construction subcontractor licensed pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code that provides design services used on a project authorized by this chapter shall not be subject to any liability arising from their design if the construction subcontract for that design is not performed by that subcontractor. (Added by Stats. 2023, Ch. 500, Sec. 1. (SB 706) Effective January 1, 2024. Repealed as of January 1, 2030, pursuant to Section 22185.11.)
  76. 22185.7.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. )

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    Local agencies and design-build entities have limits on retention withholding, including a 5% cap in some local-agency contracts and a narrower cap tied to the prime contract for subcontract chains.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. ) ## 22185.7. (a) If the local agency elects to award a project pursuant to this chapter, retention proceeds withheld by the local agency 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 local agency 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 local agency and the design-build entity from any payment made by the design-build entity to the subcontractor. (Added by Stats. 2023, Ch. 500, Sec. 1. (SB 706) Effective January 1, 2024. Repealed as of January 1, 2030, pursuant to Section 22185.11.)
  77. 22185.8.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. )

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    Local agencies using the progressive design-build process must submit a report to specified legislative committees by December 31, 2028.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. ) ## 22185.8. (a) Notwithstanding Section 10231.5 of the Government Code, no later than December 31, 2028, a local agency that uses the progressive design-build process pursuant to this chapter shall submit, to the appropriate policy and fiscal committees of the Legislature, a report on the use of the progressive design-build process. (b) The report shall include, but is not limited to, the following information: (1) A description of the project or projects awarded using the progressive design-build process. (2) The contract award amounts. (3) The design-build entities awarded the project or projects. (4) A description of any written protests concerning any aspect of the solicitation, bid, or award of the contracts, including the resolution of the protests. (5) A description of the prequalification process. (6) 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. (7) 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 local agency. (8) The number of specialty subcontractors listed by construction trade type, on each project, that meet the definition of a small business, as specified in paragraph (1) of subdivision (d) of Section 14837 of the Government Code. (9) The number of specialty subcontractors listed by construction trade type, on each project, that meet the definition of a microbusiness, as specified in paragraph (2) of subdivision (d) of Section 14837 of the Government Code. (10) If a project awarded under this chapter has been completed, an assessment of the project performance, including, but not limited to, a summary of any delays or cost increases. (c) The report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code. (Added by Stats. 2023, Ch. 500, Sec. 1. (SB 706) Effective January 1, 2024. Repealed as of January 1, 2030, pursuant to Section 22185.11.)
  78. 22185.9.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. )

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    A local agency is not authorized by this chapter to perform work on a state-owned or state-operated facility.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.7. Local Agency Design-Build Contracting [22185 - 22185.11] ( Chapter 4.7 added by Stats. 2023, Ch. 500, Sec. 1. ) ## 22185.9. Nothing in this chapter authorizes a local agency to perform work on a state-owned or state-operated facility. (Added by Stats. 2023, Ch. 500, Sec. 1. (SB 706) Effective January 1, 2024. Repealed as of January 1, 2030, pursuant to Section 22185.11.)
  79. 22190.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. )

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    This section defines terms used for Port of Long Beach Pier Wind project contracting.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. ) ## 22190. For purposes of this chapter, the following definitions apply: (a) “Apprenticeable occupation” has the same meaning as provided in subdivision (a) of Section 2601. (b) “Best interests of the city” means a procurement process that is determined by the city to provide the best value and an expedited delivery schedule while maintaining a high level of quality workmanship and materials. (c) “Best value” means a procurement process whereby the selected bidder may be selected on the basis of objective criteria for evaluating the qualifications of bidders with the resulting selection representing the best combination of price and qualifications. (d) “Business entity” means a partnership, corporation, or other legal entity that is able to provide appropriately licensed contracting, architectural, engineering, financial, construction, operations, management, facilities maintenance, and other services for development of the project, as applicable in relation to its respective scope of work. (e) “City” means the City of Long Beach and its Board of Harbor Commissioners. (f) “Construction” for purposes of the project, as defined in subdivision (p), does not include maritime and longshore operations. (g) “Construction manager at-risk” means a competitively procured contract by the city with an individual, partnership, joint venture, corporation, or other recognized legal entity, that is appropriately licensed in this state, including a contractor’s license issued by the Contractors State License Board, and that guarantees the cost of a project and furnishes construction management services, including, but not limited to, preparation and coordination of bid packages, scheduling, cost control, value engineering, evaluation, preconstruction services, and construction administration. (h) “Construction Manager/General Contractor” means a project delivery method using a best value procurement process in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction or construction management services during the construction phase of the project. (i) “Construction subcontract” means each subcontract awarded by a business entity to a subcontractor that will perform work, labor, or render services to the business entity in or about the construction of the project, or a subcontractor licensed by the State of California that, under subcontract to the business entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in plans and specifications. (j) “Design-build” means a procurement process in which both the design and construction of a project are procured in a single phase. (k) “Design sequencing” means a method of project delivery that enables the sequencing of design activities to permit each construction phase to commence when the design for that phase is complete, instead of requiring the design for the entire project to be completed before commencing construction. (l) “Guaranteed maximum price” means the maximum payment agreed upon by the city and a business entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project or any part of the project. (m) “Maritime and longshore operations” for purposes of the project, as defined in subdivision (p), includes all of the following: (1) The loading and unloading of cargo or materials to and from vessels, or the movement of cargo or materials to and from vessels, or other directly related functions, at any terminal or port facility to the cargo’s or material’s point of rest, except for the movement of construction materials on a barge, construction staging area, or construction area when used as a construction work platform, rigging and hoisting of construction materials directly from a barge, construction staging area, or construction area when being used as a construction work platform into the construction process, the removal of construction materials directly from the project to a barge, construction staging area, or construction area when being used as a construction work platform, and the movement of construction materials and construction equipment within the construction staging area, from the construction staging area to the construction site, and on the construction site. (2) Maintenance and repair work on the containers and equipment used to load or unload vessels. (3) Maintenance and repair work necessary to facilitate the movement of cargo or materials to and from vessels at any terminal or port facility to the cargo or material’s point of rest. (n) “Preconstruction services” means services during the design phase, including, but not limited to, scheduling, pricing, and phasing to assist the city to design a more constructible project. (o) “Progressive design-build” means a project delivery method in which the design, preconstruction services, and construction of the project or part of the project are procured, in one or more stages, from a single design-build entity that is selected through a best value-based selection at an early stage of the project. (p) (1) “Project” means the terminal development project at the Port of Long Beach, currently known as Pier Wind, that is anticipated to involve the construction and development of a large-scale, multiacre terminal and transportation corridor to support offshore wind-related activities. (2) “Project” does not include the construction, assembly, operation, or maintenance of offshore wind turbine systems or their floating foundations, nor the manufacturing and fabrication of their components. (3) “Project” does not include maritime and longshore operations. (q) “Project labor agreement” has the same meaning as provided in paragraph (1) of subdivision (b) of Section 2500. (r) “Public works” has the same meaning as provided in subdivision (a) of Section 1720 of the Labor Code. (s) “Vessel” includes, but is not limited to, a ship, boat, barge, and other related maritime craft. (Added by Stats. 2024, Ch. 707, Sec. 1. (AB 2235) Effective January 1, 2025.)
  80. 22191.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. )

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    The city may use specified contracting methods for the Port of Long Beach Pier Wind Project, but it must prepare and advertise solicitation documents, review submissions, and meet stated conditions before using an alternative delivery contract.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. ) ## 22191. (a) (1) The city may procure contracts for the project or any part of the project pursuant to this chapter. (2) The city may enter into an alternative project delivery method contract for any part of the project pursuant to this chapter upon completing both of the following: (A) An evaluation of the traditional design-bid-build process of construction and of the alternative project delivery method in a public meeting. (B) Following the evaluation specified in subparagraph (A), a written finding that use of the alternative project delivery method on the project will accomplish one or more of the following objectives: (i) Reduce project costs. (ii) Expedite the completion of the project. (iii) Provide features that are not achievable through the design-bid-build method. (b) Subject to the limitations of this chapter, the city may utilize any of the following alternative project delivery methods, or any combination of the following methods: (1) Construction manager at-risk. (2) Construction Manager/General Contractor. (3) Design-build. (4) Design sequencing. (5) Progressive design-build. (c) The design and construction of the project may occur in sequential or concurrent phases. (d) This chapter does not allow an alternative project delivery method to include maritime and longshore operations. (e) Except to the extent otherwise required under applicable law, the city may include in any contract procured pursuant to this chapter any provision that the city determines is necessary or appropriate. (f) (1) The city shall prepare, publicly advertise, and issue solicitation documents to procure and award any contract pursuant to this chapter, subject to the following: (A) For Construction Manager/General Contractor contracts, the solicitation documents prepared by the city shall include criteria that are the same as, or substantially similar to, those provided in subparagraphs (A) to (K), inclusive, of paragraph (1) of, and paragraph (2) of, subdivision (a) of Section 6703. (B) For design-build and progressive design-build contracts, the city shall comply with the same or substantially similar requirements of Section 22185.2 and Sections 22185.4 to 22185.7, inclusive, and subdivisions (a), (c), and (d) of Section 22185.3. (2) The contract solicitation process may include prequalification or short-listing business entities who seek to perform the project or any part of the project. (3) The city shall review submissions it solicits and receives and may award contracts for the project to one or more responsible business entities whose submissions are determined by the city to be the most advantageous by providing the best value in meeting the best interests of the city. (g) The city shall retain the right not to award any contract for the project, including if the city determines that the project is not in the best interests of the city or should negotiations with any business entity otherwise fail. (Added by Stats. 2024, Ch. 707, Sec. 1. (AB 2235) Effective January 1, 2025.)
  81. 22192.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. )

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    The city may amend the contract, direct the business entity to finish remaining project work, and add funds if pricing is agreed. If pricing is not agreed, the city may seek other proposals or delivery methods.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. ) ## 22192. (a) (1) Upon agreement of the pricing, including any guaranteed maximum price if applicable, for any relevant aspects of the project, the city, in its sole and absolute discretion, may do all of the following: (A) Amend its contract with the business entity. (B) Direct the business entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project or any part of the project. (C) Add funds to the contract for the activities pursuant to this subdivision. (2) Any amendment of the existing contract with the business entity shall not require any additional competitive process. (3) This section does not require the city to amend an existing contract or enter into a new contract for remaining design, preconstruction, or construction activities for the project. (b) (1) If the city and the business entity do not reach an agreement on pricing for any relevant aspect of the project, or if the city otherwise elects not to have the business entity complete some or all of the remaining work, the city may solicit proposals to complete some or all of the remaining work for the project from firms that previously submitted proposals. (2) (A) The city may, upon written determination that it is in the best interest of the city to do so, formally solicit proposals from other business entities to complete some or all of the remaining work for the project, or complete the project using other delivery methods. (B) If otherwise applicable to the city, any contract awarded for the project shall be made on a best value basis. (Added by Stats. 2024, Ch. 707, Sec. 1. (AB 2235) Effective January 1, 2025.)
  82. 22193.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. )

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    The city may specify subcontractor types, certifications, and license classifications in the project solicitation, and identified construction subcontractors must receive Chapter 4 protections.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. ) ## 22193. (a) The city, in its solicitation for proposals or bids for the project, may identify specific types of subcontractors, certifications, and license classifications that shall be included in the business entity’s proposal or bid. (b) All construction subcontractors that are identified in the business entity’s proposal or bid shall be afforded the protections of Chapter 4 (commencing with Section 4100) of Part 1. (Added by Stats. 2024, Ch. 707, Sec. 1. (AB 2235) Effective January 1, 2025.)
  83. 22194.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. )

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    Public works under this chapter must follow certain Labor Code rules, and a business entity cannot be selected by the city unless it commits to using a skilled and trained workforce for the covered construction work, 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 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. ) ## 22194. (a) All public works constructed pursuant to this chapter shall comply with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code. (b) A business entity shall not be evaluated for selection or eligible for selection by the city unless the business entity provides an enforceable commitment to the city that the business entity and its subcontractors at every tier shall use a skilled and trained workforce to perform all construction 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. (c) Subdivision (b) shall not apply if one or more of the following requirements are met: (1) The city has entered into a project labor agreement that will bind all contractors and subcontractors performing construction work on the project or contract to use a skilled and trained workforce, and the business entity agrees to be bound by that project labor agreement. (2) The project or contract is being performed under the extension or renewal of a project labor agreement that was entered into by the city before January 1, 2025, which binds all contractors and subcontractors performing construction work to use a skilled and trained workforce. (3) The business entity has entered into a project labor agreement that shall bind the entity and all of its subcontractors at every tier performing construction work on the project or contract to use a skilled and trained workforce. (Added by Stats. 2024, Ch. 707, Sec. 1. (AB 2235) Effective January 1, 2025.)
  84. 22195.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. )

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    The business entity must provide payment bonds for the project, and the city sets the form, timing, and amount.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. ) ## 22195. The business entity shall provide payment bonds for the project issued by a California-admitted surety in the form, at the times, and in the amount required by the city. (Added by Stats. 2024, Ch. 707, Sec. 1. (AB 2235) Effective January 1, 2025.)
  85. 22196.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. )

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    Project contracts must require errors and omissions insurance and must follow specified Civil Code sections.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. ) ## 22196. (a) The relevant contracts between the city and the business entity for the project shall require errors and omissions insurance coverage for the design elements of the project. (b) The relevant contracts between the city and the business entity shall be subject to subdivision (b) of Section 2782 of the Civil Code. (c) Any contract between the business entity and a contractor or subcontractor relating to the project shall be subject to Section 2782.05 of the Civil Code. (Added by Stats. 2024, Ch. 707, Sec. 1. (AB 2235) Effective January 1, 2025.)
  86. 22197.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. )

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    The negotiation process must bar practices linked to unlawful activity, including rebates, kickbacks, and other unlawful consideration, and must bar conflicted city employees from participating in the selection process.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. ) ## 22197. (a) The negotiation process shall expressly prohibit practices that may result in unlawful activity, including, but not limited to, rebates, kickbacks, or other unlawful consideration. (b) The negotiation process shall expressly prohibit city employees from participating in the selection process when those employees have a relationship with a person or business entity seeking a contract under this chapter that would subject those employees to Section 87100 of the Government Code. (Added by Stats. 2024, Ch. 707, Sec. 1. (AB 2235) Effective January 1, 2025.)
  87. 22198.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. )

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    Documents related to the project must be disclosed under the California Public Records Act, except for documents exempted under that act.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. ) ## 22198. All documents related to the project shall be subject to disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), except those exempted from disclosure under the act. (Added by Stats. 2024, Ch. 707, Sec. 1. (AB 2235) Effective January 1, 2025.)
  88. 22199.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. )

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    This chapter is severable, and—unless this chapter expressly says otherwise—it does not change other rights or remedies available at law.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.8. Port of Long Beach Pier Wind Project Contracting [22190 - 22199] ( Chapter 4.8 added by Stats. 2024, Ch. 707, Sec. 1. ) ## 22199. (a) The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (b) Except as expressly provided herein, this chapter does not affect, expand, alter, or limit any rights or remedies otherwise available at law. (Added by Stats. 2024, Ch. 707, Sec. 1. (AB 2235) Effective January 1, 2025.)
  89. 22199.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.9. Construction Manager/General Contractor Project Delivery Program [22199.5 - 22199.6] ( Chapter 4.9 added by Stats. 2025, Ch. 655, Sec. 1. )

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    This section defines key terms for the Construction Manager/General Contractor Project Delivery Program, including “best value,” “construction manager,” “local agency,” “preconstruction services,” and “project.” It also states the section is effective January 1, 2026 and inoperative January 1, 2031.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.9. Construction Manager/General Contractor Project Delivery Program [22199.5 - 22199.6] ( Chapter 4.9 added by Stats. 2025, Ch. 655, Sec. 1. ) ## 22199.5. As used in this chapter: (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 local agency and meeting the objectives of the project. (b) “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. (c) “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. (d) “Local agency” means a city, county, city and county, or special district authorized by law to provide for the production, storage, supply, treatment, or distribution of any water from any source. (e) “Preconstruction services” means advice during the design phase, including, but not limited to, scheduling, pricing, and phasing to assist the local agency to design a more constructible project. (f) “Project” means a public work necessary for the construction of a recycled water facility or infrastructure designed specifically to alleviate water shortages attributable to drought, climate change, or other environmental factors. (Added by Stats. 2025, Ch. 655, Sec. 1. (SB 598) Effective January 1, 2026. Inoperative January 1, 2031, pursuant to Section 22199.6.)
  90. 22199.6.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.9. Construction Manager/General Contractor Project Delivery Program [22199.5 - 22199.6] ( Chapter 4.9 added by Stats. 2025, Ch. 655, Sec. 1. )

    Verify source ↗

    A local agency may use the Construction Manager/General Contractor method for certain water projects if its governing body approves, but it must follow specified procedures and limit use to 15 capital outlay projects per agency.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 3. CONTRACTING BY LOCAL AGENCIES [20100 - 22199.6] ( Part 3 added by Stats. 1982, Ch. 465, Sec. 11. ) ## CHAPTER 4.9. Construction Manager/General Contractor Project Delivery Program [22199.5 - 22199.6] ( Chapter 4.9 added by Stats. 2025, Ch. 655, Sec. 1. ) ## 22199.6. (a) Upon approval by its governing body, a local agency may use, in addition to other methods of project delivery otherwise allowable by law, the Construction Manager/General Contractor method of project delivery for a regional recycled water project or other water infrastructure project undertaken to alleviate water supply shortages attributable to drought or climate change. The local agency shall follow the procedures described in Sections 21568.5 to 21568.10, inclusive. (b) The authorization under this section shall apply to no more than 15 capital outlay projects for each local agency. (c) A local agency shall award a contract pursuant to this section on a best value basis or to the lowest responsible bidder. (d) (1) The provisions of this chapter shall remain in effect only until January 1, 2031, and as of that date are inoperative. (2) A contract awarded pursuant to this chapter before it becomes inoperative, but after Sections 21568.5 to 21568.10, inclusive, become inoperative pursuant to Section 21568.11, shall continue in full force and effect until completion, including any subsequently executed changes to the contract, or termination. (Added by Stats. 2025, Ch. 655, Sec. 1. (SB 598) Effective January 1, 2026.)
  91. 22200.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 4. ARBITRATION OF PUBLIC WORKS CONTRACT CLAIMS [22200 - 22201] ( Part 4 added by Stats. 1988, Ch. 1408, Sec. 10. )

    Verify source ↗

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

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 4. ARBITRATION OF PUBLIC WORKS CONTRACT CLAIMS [22200 - 22201] ( Part 4 added by Stats. 1988, Ch. 1408, Sec. 10. ) ## 22200. As used in this part: (a) “Public works contract” means, except for a contract awarded pursuant to the State Contract Act (Part 2 (commencing with Section 10100)), a contract awarded through competitive bids or otherwise by the state, any of its political subdivisions or public agencies for the erection, construction, alteration, repair, or improvement of any kind upon real property. (b) “Claim” means a demand for monetary compensation or damages, arising under or relating to the performance of any public works contract. (Added by Stats. 1988, Ch. 1408, Sec. 10.)
  92. 22201.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 4. ARBITRATION OF PUBLIC WORKS CONTRACT CLAIMS [22200 - 22201] ( Part 4 added by Stats. 1988, Ch. 1408, Sec. 10. )

    Verify source ↗

    Public works contract terms may include an arbitration provision for claims, unless another law prohibits it.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 4. ARBITRATION OF PUBLIC WORKS CONTRACT CLAIMS [22200 - 22201] ( Part 4 added by Stats. 1988, Ch. 1408, Sec. 10. ) ## 22201. Unless otherwise prohibited by law, the terms of any public works contract may include at the time of bidding and of award a provision for arbitration of any claim pursuant to Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2. (Added by Stats. 1988, Ch. 1408, Sec. 10.)
  93. 22300.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 5. WITHHELD CONTRACT FUNDS [22300- 22300.] ( Part 5 added by Stats. 1988, Ch. 1408, Sec. 11. )

    Verify source ↗

    This section lets contractors use securities or escrow arrangements instead of some withheld contract money, and requires related bid and contract language in most public agency contracts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 5. WITHHELD CONTRACT FUNDS [22300- 22300.] ( Part 5 added by Stats. 1988, Ch. 1408, Sec. 11. ) ## 22300. (a) For purposes of this section, “contractor” includes, but is not limited to, a contractor performing a public works contract, as defined in Section 1101, and any person or entity that would qualify as a contractor under Section 6106.5. (b) 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; however, substitution of securities provisions shall not be required in contracts in which there will be financing provided by the Farmers Home Administration of the United States Department of Agriculture pursuant to the Consolidated Farm and Rural Development Act (7 U.S.C. Sec. 1921 et seq.), and where federal regulations or policies, or both, do not allow the substitution of securities. At the request and expense of the contractor, securities equivalent to the amount withheld shall be deposited with the public agency, or with a state or federally chartered bank in this state as the escrow agent, who shall then pay those moneys to the contractor. Upon satisfactory completion of the contract, the securities shall be returned to the contractor. (c) Alternatively, the contractor may request and the owner shall make payment of retentions earned directly to the escrow agent at the expense of the contractor. At the expense of the contractor, 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. (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 these provisions in bid and contract documents shall void any provisions for performance retentions in a public agency contract. For purposes of this section, the term “public agency” shall include, but shall not be limited to, chartered cities. (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 five percent of the contractor’s total bid. (3) No contractor shall require any subcontractor to waive any provision of this section. (f) The Legislature hereby 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) The escrow agreement used hereunder 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 22300 of the Public Contract Code of the State of California, Contractor has the option to deposit securities with Escrow Agent as a substitute for retention earnings required to be withheld by Owner pursuant to the Construction Contract entered into between the Owner and Contractor for ____ in the amount of ____ dated ____ (hereinafter 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 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 ____, 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 provisions, 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 the time that 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) Contractor shall be responsible for paying all fees for the expenses incurred by Escrow Agent in administering the Escrow Account and all expenses of the Owner. These expenses and payment terms shall be determined by the Owner, Contractor, and Escrow Agent. (5) The interest earned on the securities or the money market accounts held in escrow and all interest earned on that 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) Contractor shall have the right to withdraw all or any part of the principal in the Escrow Account only by written notice to Escrow Agent accompanied by written authorization from the Owner to the Escrow Agent that 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, Escrow Agent shall release to 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) Escrow Agent shall rely on the written notifications from the Owner and the Contractor pursuant to Sections (5) to (8), inclusive, of this Agreement and the Owner and Contractor shall hold Escrow Agent harmless from Escrow Agent’s release 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 Contractor in connection with the foregoing, and exemplars of their respective signatures are as follows: On behalf of Owner: On behalf of Contractor: Title Title Name Name Signature Signature Address Address On behalf of 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 (Amended by Stats. 2022, Ch. 427, Sec. 21. (SB 1489) Effective January 1, 2023.)
  94. 22350.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 5.5. THE YEAR 2000 PROBLEM VENDOR COMPLIANCE AND INFORMATION PRACTICES POLICY [22350 - 22355] ( Part 5.5 added by Stats. 1999, Ch. 784, Sec. 21. )

    Verify source ↗

    This section says the part is known as the Year 2000 Problem Vendor Compliance and Information Practices Policy 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 5.5. THE YEAR 2000 PROBLEM VENDOR COMPLIANCE AND INFORMATION PRACTICES POLICY [22350 - 22355] ( Part 5.5 added by Stats. 1999, Ch. 784, Sec. 21. ) ## 22350. This part shall be known and may be cited as the Year 2000 Problem Vendor Compliance and Information Practices Policy. (Added by Stats. 1999, Ch. 784, Sec. 21. Effective October 10, 1999.)
  95. 22351.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 5.5. THE YEAR 2000 PROBLEM VENDOR COMPLIANCE AND INFORMATION PRACTICES POLICY [22350 - 22355] ( Part 5.5 added by Stats. 1999, Ch. 784, Sec. 21. )

    Verify source ↗

    This section defines “Contractor,” “Person,” and “Year 2000 Problem” for this part.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 5.5. THE YEAR 2000 PROBLEM VENDOR COMPLIANCE AND INFORMATION PRACTICES POLICY [22350 - 22355] ( Part 5.5 added by Stats. 1999, Ch. 784, Sec. 21. ) ## 22351. For purposes of this part, the following definitions apply: (a) “Contractor” means any individual, corporation, partnership, business entity, joint venture or association, or any other organization or any combination thereof, that has entered into a contractual relationship with any public entity. (b) “Person” means any individual, corporation, partnership, business entity, joint venture, or association, or any other organization or any combination thereof. (c) “Year 2000 Problem” has the same meaning as that set forth in subdivision (a) of Section 3269 of the Civil Code. (Added by Stats. 1999, Ch. 784, Sec. 21. Effective October 10, 1999.)
  96. 22352.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 5.5. THE YEAR 2000 PROBLEM VENDOR COMPLIANCE AND INFORMATION PRACTICES POLICY [22350 - 22355] ( Part 5.5 added by Stats. 1999, Ch. 784, Sec. 21. )

    Verify source ↗

    The state’s policy is to do business only with contractors and other persons who, after contracting with a public entity, acknowledge Year 2000 compliance concerns, answer public entity inquiries, and share compliance information.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 5.5. THE YEAR 2000 PROBLEM VENDOR COMPLIANCE AND INFORMATION PRACTICES POLICY [22350 - 22355] ( Part 5.5 added by Stats. 1999, Ch. 784, Sec. 21. ) ## 22352. It is the policy of this state to do business solely with those persons and contractors that, subsequent to entering into any contract with a public entity, recognize the importance and urgency of the Year 2000 Problem, respond to inquiries from public entities regarding Year 2000 Problem compliance for all goods or services provided to the state, and participate in the disclosure of information to public entities regarding Year 2000 Problem compliance for all goods and services provided to the state. (Added by Stats. 1999, Ch. 784, Sec. 21. Effective October 10, 1999.)
  97. 22353.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 5.5. THE YEAR 2000 PROBLEM VENDOR COMPLIANCE AND INFORMATION PRACTICES POLICY [22350 - 22355] ( Part 5.5 added by Stats. 1999, Ch. 784, Sec. 21. )

    Verify source ↗

    A public entity may ask a contractor for information about the Year 2000 Problem, and each such request must include specified citations and notices.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 5.5. THE YEAR 2000 PROBLEM VENDOR COMPLIANCE AND INFORMATION PRACTICES POLICY [22350 - 22355] ( Part 5.5 added by Stats. 1999, Ch. 784, Sec. 21. ) ## 22353. (a) Any public entity may submit a written request for information regarding the Year 2000 Problem to any contractor who is under contract to provide, or was at any time under contract to provide, any project, materials, supplies, equipment, services, or real property, as described in Part 2 (commencing with Section 10100). (b) Each request made pursuant to subdivision (a) shall include all of the following information: (1) A direct citation of the authority to make a request pursuant to this part. (2) Notification of the policy of the state regarding the Year 2000 Problem, as set forth in Section 22352. (3) Notification of the responsible bidder provisions that exist under the State Contract Act (Part 2 (commencing with Section 10100)). (Added by Stats. 1999, Ch. 784, Sec. 21. Effective October 10, 1999.)
  98. 22355.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 5.5. THE YEAR 2000 PROBLEM VENDOR COMPLIANCE AND INFORMATION PRACTICES POLICY [22350 - 22355] ( Part 5.5 added by Stats. 1999, Ch. 784, Sec. 21. )

    Verify source ↗

    This section says the part cannot be read to require any person or contractor to disclose trade secret information.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 5.5. THE YEAR 2000 PROBLEM VENDOR COMPLIANCE AND INFORMATION PRACTICES POLICY [22350 - 22355] ( Part 5.5 added by Stats. 1999, Ch. 784, Sec. 21. ) ## 22355. Nothing in this part shall be construed to require any person or contractor to disclose any information that qualifies for protection as a trade secret, as defined in subdivision (d) of Section 3426.1 of the Civil Code. (Added by Stats. 1999, Ch. 784, Sec. 21. Effective October 10, 1999.)
  99. 2500.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.8. Project Labor Agreements [2500 - 2503] ( Chapter 2.8 added by Stats. 2011, Ch. 431, Sec. 2. )

    Verify source ↗

    A public entity may use or require a project labor agreement for a construction project only if the agreement includes specified taxpayer protections.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.8. Project Labor Agreements [2500 - 2503] ( Chapter 2.8 added by Stats. 2011, Ch. 431, Sec. 2. ) ## 2500. (a) A public entity may use, enter into, or require contractors to enter into, a project labor agreement for a construction project only if the agreement includes all of the following taxpayer protection provisions: (1) The agreement prohibits discrimination based on race, national origin, religion, sex, sexual orientation, political affiliation, or membership in a labor organization in hiring and dispatching workers for the project. (2) The agreement permits all qualified contractors and subcontractors to bid for and be awarded work on the project without regard to whether they are otherwise parties to collective bargaining agreements. (3) The agreement contains an agreed-upon protocol concerning drug testing for workers who will be employed on the project. (4) The agreement contains guarantees against work stoppages, strikes, lockouts, and similar disruptions of the project. (5) The agreement provides that disputes arising from the agreement shall be resolved by a neutral arbitrator. (b) For purposes of this chapter, both of the following definitions apply: (1) “Project labor agreement” means a prehire collective bargaining agreement that establishes terms and conditions of employment for a specific construction project or projects and is an agreement described in Section 158(f) of Title 29 of the United States Code. (2) “Public entity” means a public entity as defined in Section 1100. (Added by Stats. 2011, Ch. 431, Sec. 2. (SB 922) Effective January 1, 2012.)
  100. 2500.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.8. Project Labor Agreements [2500 - 2503] ( Chapter 2.8 added by Stats. 2011, Ch. 431, Sec. 2. )

    Verify source ↗

    A state agency may use or require a project labor agreement for a project over $35 million only if the agreement includes community-benefit provisions.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.8. Project Labor Agreements [2500 - 2503] ( Chapter 2.8 added by Stats. 2011, Ch. 431, Sec. 2. ) ## 2500.5. (a) A state agency may use, enter into, or require contractors to enter into, a project labor agreement pursuant to this chapter that applies to a project or set of projects with aggregate construction costs in excess of thirty-five million dollars ($35,000,000) only if the agreement also includes provisions to address community benefits. Community benefits may include partnerships with high road construction careers programs, as defined in Section 14005 of the Unemployment Insurance Code, local hire goals, coordination with programs that assist veterans in transitioning to civilian employment, job fairs for construction apprenticeship or preapprenticeship programs, or other methods agreed upon by the parties to promote employment and training opportunities for veterans and individuals who reside in economically disadvantaged areas. (b) This section shall apply to project labor agreements entered into on or after January 1, 2026. (Added by Stats. 2023, Ch. 61, Sec. 2. (SB 150) Effective July 10, 2023.)
  101. 2501.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.8. Project Labor Agreements [2500 - 2503] ( Chapter 2.8 added by Stats. 2011, Ch. 431, Sec. 2. )

    Verify source ↗

    Local public entity governing boards may vote by majority to use, enter into, or require project labor agreements for specific projects, and may allocate funding for covered projects.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.8. Project Labor Agreements [2500 - 2503] ( Chapter 2.8 added by Stats. 2011, Ch. 431, Sec. 2. ) ## 2501. The members of the governing board of a local public entity may choose by majority vote whether to use, enter into, or require contractors to enter into a project labor agreement that includes all the taxpayer protection provisions of Section 2500 for a specific project or projects awarded by that entity and whether to allocate funding to a specific project covered by such an agreement. A charter provision, initiative, or ordinance shall not prevent the governing board of a local public entity, other than a charter city, from exercising this authority on a project-specific basis. (Added by Stats. 2011, Ch. 431, Sec. 2. (SB 922) Effective January 1, 2012.)
  102. 2502.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.8. Project Labor Agreements [2500 - 2503] ( Chapter 2.8 added by Stats. 2011, Ch. 431, Sec. 2. )

    Verify source ↗

    If a charter city blocks consideration of certain project labor agreements or related funding decisions, state funding or financial assistance may not be used for the project.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.8. Project Labor Agreements [2500 - 2503] ( Chapter 2.8 added by Stats. 2011, Ch. 431, Sec. 2. ) ## 2502. If a charter provision, initiative, or ordinance of a charter city prohibits the governing board’s consideration of a project labor agreement that includes all the taxpayer protection provisions of Section 2500 for a project to be awarded by the city, or prohibits the governing board from considering whether to allocate funds to a city-funded project covered by such an agreement, then state funding or financial assistance shall not be used to support that project. This section shall not be applicable until January 1, 2015, for charter cities in which a charter provision, initiative, or ordinance in effect prior to November 1, 2011, would disqualify a project from receiving state funding or financial assistance. (Added by Stats. 2011, Ch. 431, Sec. 2. (SB 922) Effective January 1, 2012.)
  103. 2503.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.8. Project Labor Agreements [2500 - 2503] ( Chapter 2.8 added by Stats. 2011, Ch. 431, Sec. 2. )

    Verify source ↗

    If a charter city limits its board’s authority over project labor agreements, state funding or financial assistance may not be used for the city’s construction projects.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.8. Project Labor Agreements [2500 - 2503] ( Chapter 2.8 added by Stats. 2011, Ch. 431, Sec. 2. ) ## 2503. If a charter provision, initiative, or ordinance of a charter city prohibits, limits, or constrains in any way the governing board’s authority or discretion to adopt, require, or utilize a project labor agreement that includes all the taxpayer protection provisions of Section 2500 for some or all of the construction projects to be awarded by the city, then state funding or financial assistance shall not be used to support any construction projects awarded by the city. This section shall not be applicable until January 1, 2015, for charter cities in which a charter provision, initiative, or ordinance in effect prior to November 1, 2011, would disqualify a construction project from receiving state funding or financial assistance. (Added by Stats. 2012, Ch. 11, Sec. 1. (SB 829) Effective January 1, 2013.)
  104. 2600.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.9. Skilled and Trained Workforce Requirements [2600 - 2604] ( Chapter 2.9 added by Stats. 2016, Ch. 774, Sec. 4. )

    Verify source ↗

    Public entities may require a skilled and trained workforce for a contract or project, and if that requirement applies they must put a notice in bid documents and construction contracts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.9. Skilled and Trained Workforce Requirements [2600 - 2604] ( Chapter 2.9 added by Stats. 2016, Ch. 774, Sec. 4. ) ## 2600. (a) This chapter applies when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. (b) A public entity may require a bidder, contractor, or other entity to use a skilled and trained workforce to complete a contract or project regardless of whether the public entity is required to do so by a statute or regulation. (c) When the use of a skilled and trained workforce to complete a contract or project is required pursuant to subdivision (a) or (b), the public entity shall include in all bid documents and construction contracts a notice that the project is subject to the skilled and trained workforce requirement. (Amended by Stats. 2020, Ch. 347, Sec. 1. (AB 2311) Effective January 1, 2021.)
  105. 2600.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.9. Skilled and Trained Workforce Requirements [2600 - 2604] ( Chapter 2.9 added by Stats. 2016, Ch. 774, Sec. 4. )

    Verify source ↗

    If a public entity fails to give the notice required by Section 2600(c), that failure does not excuse the public entity or a bidder, contractor, or other entity from the skilled-and-trained-workforce requirements described here.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.9. Skilled and Trained Workforce Requirements [2600 - 2604] ( Chapter 2.9 added by Stats. 2016, Ch. 774, Sec. 4. ) ## 2600.5. The failure of a public entity to provide a notice pursuant to subdivision (c) of Section 2600 shall not excuse either of the following: (a) The public entity from the requirement to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. (b) A bidder, contractor, or other entity from the obligation to use a skilled or trained workforce if such a requirement is imposed by a statute or regulation. (Added by Stats. 2020, Ch. 347, Sec. 2. (AB 2311) Effective January 1, 2021.)
  106. 2601.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.9. Skilled and Trained Workforce Requirements [2600 - 2604] ( Chapter 2.9 added by Stats. 2016, Ch. 774, Sec. 4. )

    Verify source ↗

    This section defines key apprenticeship terms and requires contractors and subcontractors on covered work to meet skilled workforce graduation percentages over time, with some exceptions.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.9. Skilled and Trained Workforce Requirements [2600 - 2604] ( Chapter 2.9 added by Stats. 2016, Ch. 774, Sec. 4. ) ## 2601. For purposes of this chapter: (a) “Apprenticeable occupation” means an occupation for which the Chief of the Division of Apprenticeship Standards of the Department of Industrial Relations had approved an apprenticeship program pursuant to Section 3075 of the Labor Code before January 1, 2014. (b) “Chief” means the Chief of the Division of Apprenticeship Standards of the Department of Industrial Relations. (c) “Graduate of an apprenticeship program” means either of the following: (1) An individual that has been issued a certificate of completion under the authority of the California Apprenticeship Council for completing an apprenticeship program approved by the chief pursuant to Section 3075 of the Labor Code. (2) An individual that has completed an apprenticeship program located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor. (d) “Skilled and trained workforce” means a workforce that meets all of the following conditions: (1) All the workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in an apprenticeship program approved by the chief. (2) (A) For work performed on or after January 1, 2017, at least 30 percent of the skilled journeypersons employed to perform work on the contract or project by every contractor and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation. This requirement shall not apply to work performed in the occupation of teamster. (B) For work performed on or after January 1, 2018, at least 40 percent of the skilled journeypersons employed to perform work on the contract or project by every contractor and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation, except that the requirements of subparagraph (A) shall continue to apply to work performed in the following occupations: acoustical installer, bricklayer, carpenter, cement mason, drywall installer or lather, marble mason, finisher, or setter, modular furniture or systems installer, operating engineer, pile driver, plasterer, roofer or waterproofer, stone mason, surveyor, teamster, terrazzo worker or finisher, and tile layer, setter, or finisher. (C) For work performed on or after January 1, 2019, at least 50 percent of the skilled journeypersons employed to perform work on the contract or project by every contractor and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation, except that the requirements of subparagraph (A) shall continue to apply to work performed in the following occupations: acoustical installer, bricklayer, carpenter, cement mason, drywall installer or lather, marble mason, finisher, or setter, modular furniture or systems installer, operating engineer, pile driver, plasterer, roofer or waterproofer, stone mason, surveyor, teamster, terrazzo worker or finisher, and tile layer, setter, or finisher. (D) For work performed on or after January 1, 2020, at least 60 percent of the skilled journeypersons employed to perform work on the contract or project by every contractor and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation, except that the requirements of subparagraph (A) shall continue to apply to work performed in the following occupations: acoustical installer, bricklayer, carpenter, cement mason, drywall installer or lather, marble mason, finisher, or setter, modular furniture or systems installer, operating engineer, pile driver, plasterer, roofer or waterproofer, stone mason, surveyor, teamster, terrazzo worker or finisher, and tile layer, setter, or finisher. (3) For an apprenticeable occupation in which no apprenticeship program had been approved by the chief before January 1, 1995, up to one-half of the graduation percentage requirements of paragraph (2) may be satisfied by skilled journeypersons who commenced working in the apprenticeable occupation before the chief’s approval of an apprenticeship program for that occupation in the county in which the project is located. (4) The apprenticeship graduation percentage requirements of paragraph (2) are satisfied if, in a particular calendar month, either of the following is true: (A) At least the required percentage of the skilled journeypersons employed by the contractor or subcontractor to perform work on the contract or project meet the graduation percentage requirement. (B) For the hours of work performed by skilled journeypersons employed by the contractor or subcontractor on the contract or project, the percentage of hours performed by skilled journeypersons who met the graduation requirement is at least equal to the required graduation percentage. (5) The contractor or subcontractor need not meet the apprenticeship graduation requirements of paragraph (2) if, during the calendar month, the contractor or subcontractor employs skilled journeypersons to perform fewer than 10 hours of work on the contract or project. (6) A subcontractor need not meet the apprenticeship graduation requirements of paragraph (2) if both of the following requirements are met: (A) The subcontractor was not a listed subcontractor under Section 4104 or a substitute for a listed subcontractor. (B) The subcontract does not exceed one-half of 1 percent of the price of the prime contract. (e) “Skilled journeyperson” means a worker who either: (1) Graduated from an apprenticeship program for the applicable occupation that was approved by the chief or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor. (2) Has at least as many hours of on-the-job experience in the applicable occupation as would be required to graduate from an apprenticeship program for the applicable occupation that is approved by the chief. (Amended by Stats. 2018, Ch. 882, Sec. 1. (AB 3018) Effective January 1, 2019.)
  107. 2602.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.9. Skilled and Trained Workforce Requirements [2600 - 2604] ( Chapter 2.9 added by Stats. 2016, Ch. 774, Sec. 4. )

    Verify source ↗

    Contractors, bidders, or similar entities that must commit to using a skilled and trained workforce must put that commitment in an enforceable agreement, file monthly compliance reports, and may face payment withholding if reports are missing or incomplete.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.9. Skilled and Trained Workforce Requirements [2600 - 2604] ( Chapter 2.9 added by Stats. 2016, Ch. 774, Sec. 4. ) ## 2602. (a) When a contractor, bidder, or other entity is required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a contract or project, the commitment shall be made in an enforceable agreement with the public entity or other awarding body that provides both of the following: (1) The contractor, bidder, or other entity, and its contractors and subcontractors at every tier, will comply with this chapter. (2) The contractor, bidder, or other entity will provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with this chapter. The required monthly report demonstrating compliance with this chapter shall include the full name of, and identify the apprenticeship program name, location, and graduation date of, each worker relied upon to satisfy the apprenticeship graduation percentage requirements of paragraph (2) of subdivision (d) of Section 2601. (b) If the contractor, bidder, or other entity fails to provide the monthly report required by this section, or provides a report that is incomplete, the public agency or other awarding body shall withhold further payments until a complete report is provided. If a monthly report is incomplete due to the failure of a subcontractor to timely submit the required information to the contractor, bidder, or other entity, the public agency or awarding body shall only withhold an amount equal to 150 percent of the value of the monthly billing for the relevant subcontractor. If a public agency or other awarding body withholds amounts pursuant to this subdivision, the contractor, bidder, or other entity shall be entitled to withhold the same amount from the subcontractor until the subcontractor provides the contractor, bidder, or other entity a complete report, and the public agency or awarding body subsequently pays the contractor, bidder, or other entity the withheld payments. If the contractor, bidder, or other entity substitutes a subcontractor pursuant to Chapter 4 (commencing with Section 4100) for failure to provide a complete report, and the contractor, bidder, or other entity replaces the subcontractor with one that provides an enforceable commitment that a skilled and trained workforce will be used to complete the contract or project, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments. (c) If a monthly report does not demonstrate compliance with this chapter, the public agency or other awarding body shall do all of the following: (1) Withhold further payments until the contractor, bidder, or other entity provides a plan to achieve substantial compliance with this chapter, with respect to the relevant apprenticeable occupation, prior to completion of the contract or project. All of the following shall apply to the withholding of payments under this paragraph: (A) The public agency or awarding body shall withhold an amount equal to 150 percent of the value of the monthly billing for the entity that failed to comply with this chapter, or 150 percent of the value of the monthly billing for the subcontractor that failed to comply with this chapter. If a public agency or other awarding body withholds amounts pursuant to this paragraph, the contractor, bidder, or other entity shall be entitled to withhold the same amount from the subcontractor that did not demonstrate compliance with this chapter. (B) If the contractor, bidder, or other entity substitutes a subcontractor pursuant to Chapter 4 (commencing with Section 4100) for failure to demonstrate compliance, and the contractor, bidder, or other entity replaces the subcontractor with one that provides an enforceable commitment that a skilled and trained workforce will be used to complete the contract or project, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments. (C) If a contractor, bidder, or other entity submits to the public agency or awarding body a plan to achieve substantial compliance with this chapter, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments unless, within a reasonable time, the public agency or awarding body rejects the plan as insufficient and explains the reasons for the rejection. (2) Forward a copy of the monthly report to the Labor Commissioner for issuance of a civil wage and penalty assessment in accordance with Section 2603. (3) Forward to the Labor Commissioner a copy of the plan, if any, submitted by the contractor, bidder, or other entity to achieve substantial compliance with this chapter and the response to that plan, if any, by the public agency or awarding body. (d) A monthly report provided to the public agency or other awarding body shall be a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall be open to public inspection. (Amended by Stats. 2024, Ch. 882, Sec. 1. (SB 1162) Effective January 1, 2025.)
  108. 2603.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.9. Skilled and Trained Workforce Requirements [2600 - 2604] ( Chapter 2.9 added by Stats. 2016, Ch. 774, Sec. 4. )

    Verify source ↗

    This section sets civil penalties, debarment rules, and reporting duties when contractors or subcontractors fail to use a skilled and trained workforce.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.9. Skilled and Trained Workforce Requirements [2600 - 2604] ( Chapter 2.9 added by Stats. 2016, Ch. 774, Sec. 4. ) ## 2603. (a) If the Labor Commissioner or his or her designee determines after an investigation that a contractor or subcontractor failed to use a skilled and trained workforce in accordance with this chapter, the contractor or subcontractor responsible for the violation shall forfeit, as a civil penalty to the state, not more than five thousand dollars ($5,000) per month of work performed in violation of this chapter. A contractor or subcontractor that commits a second or subsequent violation within a three-year period shall forfeit as a civil penalty to the state the sum of not more than ten thousand dollars ($10,000) per month of work performed in violation of this chapter. (b) For the purposes of this section: (1) “Any interest” shall have the same meaning as in subdivision (h) of Section 1777.1 of the Labor Code. (2) “Contractor or subcontractor” shall have the same meaning as in subdivision (g) of Section 1777.1 of the Labor Code. (3) “Entity” shall have the same meaning as in subdivision (i) of Section 1777.1 of the Labor Code. (c) The amount of any monetary penalty may be reduced or waived by the Labor Commissioner if the amount of the penalty would be disproportionate to the severity of the violation. The Labor Commissioner shall consider, in setting the amount of a monetary penalty, all of the following circumstances: (1) Whether the violation was intentional. (2) Whether the contractor or subcontractor has committed other violations of this chapter or of the Labor Code. (3) Whether, upon notice of the violation, the contractor or subcontractor took steps to voluntarily remedy the violation. (4) The extent or severity of the violation. (5) Whether a contractor or subcontractor submitted and followed a plan to achieve substantial compliance with this chapter. (d) The Labor Commissioner or his or her designee shall issue a civil wage and penalty assessment, in accordance with the provisions of Section 1741 of the Labor Code, upon determination of penalties assessed under subdivision (a). Review of a civil wage and penalty assessment issued under this subdivision may be requested in accordance with the provisions of Section 1742 of the Labor Code. The regulations of the Director of Industrial Relations, which govern proceedings for review of civil wage and penalty assessments and the withholding of contract payments under Article 1 (commencing with Section 1720) and Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code, shall apply. (e) The determination of the Labor Commissioner as to the amount of the penalty imposed under subdivision (a) shall be reviewable by the Director of Industrial Relations only for an abuse of discretion. (f) If a subcontractor is found to have violated this chapter, the prime contractor of the project is not liable for any penalties under subdivision (a) unless the prime contractor had knowledge of the subcontractor’s failure to comply with this chapter or unless the prime contractor fails to comply with any of the following requirements: (1) For contracts entered into on or after January 1, 2019, the contract executed between the contractor and the subcontractor for the performance of work on the project shall include a copy of this chapter. (2) The contractor shall periodically monitor the subcontractor’s use of a skilled and trained workforce. (3) Upon becoming aware of a failure of the subcontractor to use a skilled and trained workforce, the contractor shall take corrective action, including, but not limited to, retaining 150 percent of the amount due to the subcontractor for work performed on the project until the failure is corrected. (4) Prior to making the final payment to the subcontractor for work performed on the project, the contractor shall obtain a declaration signed under penalty of perjury from the subcontractor that the subcontractor has met the requirements of this chapter. (g) The Labor Commissioner shall notify the prime contractor within 15 days of the receipt by the Labor Commissioner of a complaint that a subcontractor violated this chapter. (h) Whenever a contractor or subcontractor is found by the Labor Commissioner to be in violation of this chapter with intent to defraud, the contractor or subcontractor or a firm, corporation, partnership, or association in which the contractor or subcontractor has any interest is ineligible for a period of not less than one year or more than three years to do either of the following: (1) Bid on or be awarded a contract for a public works project. (2) Perform work as a subcontractor on a public works project. (i) Whenever a contractor or subcontractor is found by the Labor Commissioner to have committed two or more separate willful violations of this chapter within a three-year period, the contractor or subcontractor or a firm, corporation, partnership, or association in which the contractor or subcontractor has any interest is ineligible for a period of up to three years to do either of the following: (1) Bid on or be awarded a contract for a public works project. (2) Perform work as a subcontractor on a public works project. (j) The debarment procedures adopted by the Labor Commissioner pursuant to Section 1777.1 of the Labor Code shall apply to any finding made under subdivisions (h) or (i) of this section. (k) The Labor Commissioner shall publish on the commissioner’s Internet Web site a list of contractors who are ineligible to bid on or be awarded a public works contract, or to perform work as a subcontractor on a public works project pursuant to this section. The list shall contain the name of the contractor, the Contractors’ State License Board license number of the contractor, and the effective period of debarment of the contractor. Contractors shall be added to the list upon issuance of a debarment order and the commissioner shall also notify the Contractors’ State License Board when the list is updated. At least annually, the commissioner shall notify awarding bodies of the availability of the list of debarred contractors. (l) (1) If a public entity or awarding body that is required to obtain an enforceable commitment that a skilled and trained workforce will be used to complete a contract or project receives a monthly report which does not demonstrate compliance with the skilled and trained workforce requirements of subdivision (c) of Section 10506.6, Section 10506.8, Section 10506.9, or subdivision (c) of Section 20928.2 of this code, Article 9 (commencing with Section 388) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code, or subparagraph (B) of paragraph (8) of subdivision (a) of Section 65913.4 or subparagraph (B) of paragraph (4) of subdivision (f) of Section 66201 of the Government Code, the public entity or awarding body shall forward a copy of the monthly report to the Labor Commissioner for issuance of a civil wage and penalty assessment in accordance with this section. (2) The penalty and debarment procedures of this section shall apply to violations of subdivision (c) of Section 10506.6, Section 10506.8, Section 10506.9, or subdivision (c) of Section 20928.2 of this code, Article 9 (commencing with Section 388) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code, or subparagraph (B) of paragraph (8) of subdivision (a) of Section 65913.4 or subparagraph (B) of paragraph (4) of subdivision (f) of Section 66201 of the Government Code. (Added by Stats. 2018, Ch. 882, Sec. 3. (AB 3018) Effective January 1, 2019.)
  109. 2604.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.9. Skilled and Trained Workforce Requirements [2600 - 2604] ( Chapter 2.9 added by Stats. 2016, Ch. 774, Sec. 4. )

    Verify source ↗

    The Division of Apprenticeship Standards must create and maintain a public online database by July 1, 2025 to verify whether a worker graduated from a California apprenticeship program.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 2.9. Skilled and Trained Workforce Requirements [2600 - 2604] ( Chapter 2.9 added by Stats. 2016, Ch. 774, Sec. 4. ) ## 2604. On or before July 1, 2025, the Division of Apprenticeship Standards shall create and maintain a public online database to verify that a worker graduated from a California apprenticeship program. The database shall be searchable by using the first name, last name, and graduation date of the worker. (Added by Stats. 2024, Ch. 882, Sec. 2. (SB 1162) Effective January 1, 2025.)
  110. 3000.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 1. Roofing Projects [3000 - 3010] ( Article 1 added by Stats. 2010, Ch. 438, Sec. 1. )

    Verify source ↗

    This section defines key terms for roofing projects at public facilities.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 1. Roofing Projects [3000 - 3010] ( Article 1 added by Stats. 2010, Ch. 438, Sec. 1. ) ## 3000. For purposes of this article, the following terms have the following meanings: (a) “Architect” means an architect who has a current license issued by the state. (b) “District” means a school district with an average daily attendance greater than 2,500 or a community college district. (c) “Engineer” means an engineer who has a current license issued by the state. (d) “Public facility” means a public school or community college. (e) “Roofing consultant” means a consultant who is registered by RCI (formerly Roof Consultants Institute). (f) “Roof project” means a project for the replacement or repair of a roof of a public facility, except that “roof project” does not include a project for the repair of 25 percent or less of the roof or a repair project that has a total cost of twenty-one thousand dollars ($21,000) or less. (g) “Substitute” or “substitution” means a material, product, thing, or service proposed by a bidder to be an adequate substitute material, product, thing, or service that is equal to an item designated in specifications, pursuant to subdivision (b) of Section 3400 and subdivision (a) of Section 10129. (Added by Stats. 2010, Ch. 438, Sec. 1. (AB 635) Effective September 29, 2010.)
  111. 3002.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 1. Roofing Projects [3000 - 3010] ( Article 1 added by Stats. 2010, Ch. 438, Sec. 1. )

    Verify source ↗

    A roof project material, product, thing, or service counts as equal only if it matches the listed standards for quality, durability, design, appearance, function, and substantial conformity to specifications.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 1. Roofing Projects [3000 - 3010] ( Article 1 added by Stats. 2010, Ch. 438, Sec. 1. ) ## 3002. (a) For purposes of subdivision (b) of Section 3400 and subdivision (a) of Section 10129, for any roof project, a material, product, thing, or service shall be considered equal if it meets all of the following requirements: (1) The item is at least equal in quality, durability, design, and appearance but not necessarily of an identical color. (2) The item will perform the intended function at least equally well. (3) The item conforms substantially, even with deviations, to the detailed requirements contained in the specifications. (b) A substitute may be unequal if the resulting roof system would be substantially different than other equal or better systems in terms of performance and durability, but not merely different by virtue of the inclusion of proprietary products or a proprietary warranty. (Added by Stats. 2010, Ch. 438, Sec. 1. (AB 635) Effective September 29, 2010.)
  112. 3004.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 1. Roofing Projects [3000 - 3010] ( Article 1 added by Stats. 2010, Ch. 438, Sec. 1. )

    Verify source ↗

    Specifications for any roof project must be designed to promote competition.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 1. Roofing Projects [3000 - 3010] ( Article 1 added by Stats. 2010, Ch. 438, Sec. 1. ) ## 3004. Specifications for any roof project shall be designed to promote competition. (Added by Stats. 2010, Ch. 438, Sec. 1. (AB 635) Effective September 29, 2010.)
  113. 3006.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 1. Roofing Projects [3000 - 3010] ( Article 1 added by Stats. 2010, Ch. 438, Sec. 1. )

    Verify source ↗

    People involved in roof project contracts must disclose financial relationships and provide the signed certification, with limited stockholder-based exceptions; knowing false statements or nondisclosure can trigger liability and a civil penalty.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 1. Roofing Projects [3000 - 3010] ( Article 1 added by Stats. 2010, Ch. 438, Sec. 1. ) ## 3006. (a) (1) An architect, engineer, or roofing consultant who provides professional services related to a roof project shall disclose any financial relationships by completing and signing the certification set forth in subdivision (b) prior to the time professional services are engaged. A materials manufacturer, contractor, or vendor involved in a bid or proposal for a roof project shall disclose any financial relationships by completing and signing the certification set forth in subdivision (b) when the award is made. The architect, engineer, roofing consultant, materials manufacturer, contractor, or vendor shall provide the certification to the district. (2) An architect, engineer, roofing consultant, materials manufacturer, contractor, or vendor shall not disclose a financial relationship in which that person or entity is a stockholder of a corporation the stock of which is listed for sale to the general public on a national securities exchange and registered with the United States Securities and Exchange Commission, if the person or entity holds less than 10 percent of the outstanding stock entitled to vote at the annual meeting of the corporation. (3) An architect, contractor, engineer, materials manufacturer, roofing consultant, or vendor who knowingly provides false information or fails to disclose a financial relationship pursuant to this section shall be liable to the district for any costs to the district that are reasonably attributable to excess or unnecessary costs, when compared to competing bids, incurred by the district as a result of the undisclosed financial relationship. (b) I, Name, Name of Employer, certify that I have not offered, given, or agreed to give, received, accepted, or agreed to accept, any gift, contribution, or any financial incentive whatsoever to or from any person in connection with the roof project contract. As used in this certification, “person” means any natural person, business, partnership, corporation, union, committee, club, or other organization, entity, or group of individuals. Furthermore, I, Name, Name of Employer, certify that I do not have, and throughout the duration of the contract, I will not have, any financial relationship in connection with the performance of this contract with any architect, engineer, roofing consultant, materials manufacturer, distributor, or vendor that is not disclosed below. I, Name, Name of Employer, have the following financial relationships with an architect, engineer, roofing consultant, materials manufacturer, distributor, or vendor, or other person in connection with the following roof project contract: Name and Address of Building, Contract Date and Number I certify that to the best of my knowledge, the contents of this disclosure are true, or are believed to be true. SignatureDate Print Name Print Name of Employer (c) Any person who knowingly provides false information or fails to disclose a financial relationship in the disclosure set forth in subdivision (b) shall be subject to a civil penalty in an amount up to one thousand dollars ($1,000), in addition to any other available remedies. An action for a civil penalty under this provision may be brought by any public prosecutor in the name of the people of the State of California. (Added by Stats. 2010, Ch. 438, Sec. 1. (AB 635) Effective September 29, 2010.)
  114. 3008.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 1. Roofing Projects [3000 - 3010] ( Article 1 added by Stats. 2010, Ch. 438, Sec. 1. )

    Verify source ↗

    An interested person may report bid rigging involving local government employees or officials to the Attorney General’s Antitrust Law Section, and may file complaints about improper bidding involving state funding with the Bureau of State Audits Whistleblower Hotline.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 1. Roofing Projects [3000 - 3010] ( Article 1 added by Stats. 2010, Ch. 438, Sec. 1. ) ## 3008. (a) To report bid rigging involving local government agencies and employees, including, but not limited to, county, city, and school district employees and officials, an interested person may contact the Antitrust Law Section of the Office of the Attorney General, 300 S. Spring St., Ste. 1702, Los Angeles, CA 90013, (800) 952-5225, or fill out the online complaint form on the Internet Web site of the Office of the Attorney General (Consumer Complaint Against a Business/Company) at ag.ca.gov/contact/complaint_form.php?cmplt=CL. (b) To file a complaint regarding improper bidding involving state funding, an interested person may contact the Bureau of State Audits Whistleblower Hotline for any state agency or institution, at 800-952-5665, or by mail at 555 Capitol Mall, Suite 300, Sacramento, CA 95814. (Added by Stats. 2010, Ch. 438, Sec. 1. (AB 635) Effective September 29, 2010.)
  115. 3010.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 1. Roofing Projects [3000 - 3010] ( Article 1 added by Stats. 2010, Ch. 438, Sec. 1. )

    Verify source ↗

    This article does not apply to certain school districts and community college districts when they are operating under the referenced sections.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 1. Roofing Projects [3000 - 3010] ( Article 1 added by Stats. 2010, Ch. 438, Sec. 1. ) ## 3010. This article shall not apply to a school district operating in accordance with Section 20113 or a community college district operating in accordance with Section 20654. (Added by Stats. 2010, Ch. 438, Sec. 1. (AB 635) Effective September 29, 2010.)
  116. 3300.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 3. Bidders [3300- 3300.] ( Article 3 added by Stats. 1985, Ch. 1073, Sec. 2. )

    Verify source ↗

    Certain public entities must state the contractor license classification required for award and include it in project plans and bid notices.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 3. Bidders [3300- 3300.] ( Article 3 added by Stats. 1985, Ch. 1073, Sec. 2. ) ## 3300. (a) Any public entity, as defined in Section 1100, the University of California, and the California State University shall specify the classification of the contractor’s license which a contractor shall possess at the time a contract is awarded. The specification shall be included in any plans prepared for a public project and in any notice inviting bids required pursuant to this code. This requirement shall apply only with respect to contractors who contract directly with the public entity. (b) A contractor who is not awarded a public contract because of the failure of an entity, as defined in subdivision (a), to comply with that subdivision shall not receive damages for the loss of the contract. (Added by Stats. 1985, Ch. 1073, Sec. 2.)
  117. 3400.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 4. Preference for Materials [3400 - 3410] ( Heading of Article 4 renumbered from Article 5 by Stats. 2017, Ch. 816, Sec. 2. )

    Verify source ↗

    Public works bid specifications generally may not limit bidding to one source or use a brand name unless followed by “or equal.”

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 4. Preference for Materials [3400 - 3410] ( Heading of Article 4 renumbered from Article 5 by Stats. 2017, Ch. 816, Sec. 2. ) ## 3400. (a) The Legislature finds and declares that it is the intent of this section to encourage contractors and manufacturers to develop and implement new and ingenious materials, products, and services that function as well, in all essential respects, as materials, products, and services that are required by a contract, but at a lower cost to taxpayers. (b) No agency of the state, nor any political subdivision, municipal corporation, or district, nor any public officer or person charged with the letting of contracts for the construction, alteration, or repair of public works, shall 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 specifying agency 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. (c) Subdivision (b) 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) (A) In order to respond to an emergency declared by a local agency, but only if the declaration is approved by a four-fifths vote of the governing board of the local agency issuing the invitation for bid or request for proposals. (B) 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. 2009, Ch. 132, Sec. 1. (AB 1086) Effective January 1, 2010.)
  118. 3410.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 4. Preference for Materials [3400 - 3410] ( Heading of Article 4 renumbered from Article 5 by Stats. 2017, Ch. 816, Sec. 2. )

    Verify source ↗

    When buying food, a public entity must prefer United States-grown produce and United States-processed foods if there is a choice and doing so is economically feasible.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 4. Preference for Materials [3400 - 3410] ( Heading of Article 4 renumbered from Article 5 by Stats. 2017, Ch. 816, Sec. 2. ) ## 3410. Any public entity, as defined in Section 1100, including any school district or community college district, when purchasing food, shall give preference to United States-grown produce and United States-processed foods when there is a choice and it is economically feasible to do so. For purposes of this section, the determination of “economically feasible” shall be made by the purchasing public entity, considering the total cost, quantity, and quality of the food and the budget and policies of the entity. (Added by Stats. 1987, Ch. 158, Sec. 2.)
  119. 3500.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 5. Buy Clean California Act [3500 - 3505] ( Article 5 added by Stats. 2017, Ch. 816, Sec. 3. )

    Verify source ↗

    This section says the article is known as, and may be cited as, the Buy Clean California Act.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 5. Buy Clean California Act [3500 - 3505] ( Article 5 added by Stats. 2017, Ch. 816, Sec. 3. ) ## 3500. This article shall be known, and may be cited, as the Buy Clean California Act. (Added by Stats. 2017, Ch. 816, Sec. 3. (AB 262) Effective January 1, 2018.)
  120. 3501.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 5. Buy Clean California Act [3500 - 3505] ( Article 5 added by Stats. 2017, Ch. 816, Sec. 3. )

    Verify source ↗

    This section defines key terms used in the Buy Clean California Act article, including “awarding authority,” “department,” “eligible materials,” and “eligible project.”

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 5. Buy Clean California Act [3500 - 3505] ( Article 5 added by Stats. 2017, Ch. 816, Sec. 3. ) ## 3501. For purposes of this article, the following definitions apply: (a) “Awarding authority” means any of the following: (1) A state agency for a contract for a public works project that is subject to the State Contract Act (Chapter 1 (commencing with Section 10100) of Part 2). (2) The Regents of the University of California for a contract for a public works project that is subject to Chapter 2.1 (commencing with Section 10500) of Part 2. (3) The Trustees of the California State University for a contract for a public works project that is subject to the California State University Contract Law (Chapter 2.5 (commencing with Section 10700) of Part 2). (b) “Department” means the Department of General Services. (c) “Eligible materials” means any of the following: (1) Carbon steel rebar. (2) Flat glass. (3) Insulation. (4) Structural steel. (d) “Eligible project” means a project that the awarding authority determines will require eligible materials. (Amended by Stats. 2024, Ch. 325, Sec. 1. (SB 1207) Effective January 1, 2025.)
  121. 3502.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 5. Buy Clean California Act [3500 - 3505] ( Article 5 added by Stats. 2017, Ch. 816, Sec. 3. )

    Verify source ↗

    The department must set and publish a maximum acceptable global warming potential for each eligible material category, report its method to the Legislature, and review the standard every three years.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 5. Buy Clean California Act [3500 - 3505] ( Article 5 added by Stats. 2017, Ch. 816, Sec. 3. ) ## 3502. (a) By January 1, 2022, the department, in consultation with the State Air Resources Board, shall establish, and publish in the State Contracting Manual or a department management memorandum, or make available on the department’s internet website, a maximum acceptable global warming potential for each category of eligible materials in accordance with both of the following requirements: (1) The department shall set the maximum acceptable global warming potential at the industry average of facility-specific global warming potential emissions for that material with a phase-in period of not more than two years. The department shall determine the industry average by consulting recognized databases of environmental product declarations. If the department determines that the facility-specific environmental product declarations available do not adequately represent the industry as a whole, it may use industrywide environmental product declarations based on domestic production data in its calculation of the industry average. When determining the industry averages pursuant to this paragraph, the department should include all stages of manufacturing required by the relevant product category rule. However, when setting the initial industry average, the department may exclude emissions that occur during fabrication stages, and make reasonable judgments aligned with the product category rule. (2) The department shall express the maximum acceptable global warming potential as a number that states the maximum acceptable facility-specific global warming potential for each category of eligible materials. The department may set different maximums for different products within each category and, when more than one set of product category rules exists for a category or set of products, may set a different maximum for each set of product category rules. The global warming potential shall be provided in a manner that is consistent with criteria in an Environmental Product Declaration. (b) The department, by January 1, 2022, shall submit a report to the Legislature that describes the method that the department used to develop the maximum global warming potential for each category of eligible materials pursuant to subdivision (a). The report required by this subdivision shall be submitted in compliance with Section 9795 of the Government Code. (c) By January 1, 2025, and every three years thereafter, the department shall review the maximum acceptable global warming potential for each category of eligible materials established pursuant to subdivision (a), and may adjust that number downward for any eligible material to reflect industry improvements if the department, based on the process described in paragraph (1) of subdivision (a), determines that the industry average has changed, but the department shall not adjust that number upward for any eligible material. At that time, the department shall update the State Contracting Manual, department management memorandum, or information available on the department’s internet website, to reflect that adjustment. (Amended by Stats. 2021, Ch. 77, Sec. 23. (AB 137) Effective July 16, 2021.)
  122. 3503.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 5. Buy Clean California Act [3500 - 3505] ( Article 5 added by Stats. 2017, Ch. 816, Sec. 3. )

    Verify source ↗

    Awarding authorities must require certain bidders to submit facility-specific environmental declarations for eligible materials and must set bid specifications to stay within maximum global warming potential limits, with limited exceptions.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 5. Buy Clean California Act [3500 - 3505] ( Article 5 added by Stats. 2017, Ch. 816, Sec. 3. ) ## 3503. (a) An awarding authority shall require the successful bidder for a contract described in subdivision (b) to submit a current facility-specific Environmental Product Declaration, Type III, as defined by the International Organization for Standardization (ISO) standard 14025, or similarly robust life cycle assessment methods that have uniform standards in data collection consistent with ISO standard 14025, industry acceptance, and integrity, for each eligible material proposed to be used. (b) An awarding authority shall include in a specification for bids for an eligible project that the facility-specific global warming potential for any eligible material does not exceed the maximum acceptable global warming potential for that material determined pursuant to Section 3502. An awarding authority may include in a specification for bids for an eligible project a facility-specific global warming potential for any eligible material that is lower than the maximum acceptable global warming potential for that material determined pursuant to Section 3502. (c) A successful bidder for a contract described in subdivision (b) shall not install any eligible materials on the project until that bidder submits a facility-specific Environmental Product Declaration for that material pursuant to subdivision (a). (d) This section shall only apply to a contract entered into on or after July 1, 2022. (e) This section shall not apply to an eligible material for a particular contract if the awarding authority determines, upon written justification published on its internet website, that requiring those eligible materials to comply would be technically infeasible, would result in a significant increase in the project cost or a significant delay in completion, or would result in only one source or manufacturer being able to provide the type of material needed by the state. (f) This section shall not apply if the awarding authority determines that an emergency exists, as defined in Section 1102, or that any of the circumstances described in subdivisions (a) to (d), inclusive, of Section 10122 exist. (Amended by Stats. 2021, Ch. 77, Sec. 24. (AB 137) Effective July 16, 2021.)
  123. 3504.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 5. Buy Clean California Act [3500 - 3505] ( Article 5 added by Stats. 2017, Ch. 816, Sec. 3. )

    Verify source ↗

    When carrying out duties under this article, an awarding authority should aim for a continuous reduction in emissions over time.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 5. Buy Clean California Act [3500 - 3505] ( Article 5 added by Stats. 2017, Ch. 816, Sec. 3. ) ## 3504. In carrying out its duties under this article, an awarding authority shall strive to achieve a continuous reduction of emissions over time. (Added by Stats. 2017, Ch. 816, Sec. 3. (AB 262) Effective January 1, 2018.)
  124. 3505.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 5. Buy Clean California Act [3500 - 3505] ( Article 5 added by Stats. 2017, Ch. 816, Sec. 3. )

    Verify source ↗

    The department must submit a report to the Legislature by July 1, 2023.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 3. Formation [3000 - 3505] ( Chapter 3 added by Stats. 1983, Ch. 256, Sec. 81. ) ## ARTICLE 5. Buy Clean California Act [3500 - 3505] ( Article 5 added by Stats. 2017, Ch. 816, Sec. 3. ) ## 3505. The department, by July 1, 2023, shall submit a report to the Legislature on any obstacles to the implementation of this article, and the effectiveness of this article to reduce global warming potential. The report required by this section shall be submitted in compliance with Section 9795 of the Government Code. (Amended by Stats. 2021, Ch. 77, Sec. 25. (AB 137) Effective July 16, 2021.)
  125. 4100.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    This chapter may be cited as the “Subletting and Subcontracting Fair Practices Act.”

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4100. This chapter may be cited as the “Subletting and Subcontracting Fair Practices Act.” (Added by Stats. 1986, Ch. 195, Sec. 42.1.)
  126. 4101.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    The Legislature states that bid shopping and bid peddling in public improvement projects can harm quality, fair competition, workers, and the public.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4101. The Legislature finds that the practices of bid shopping and bid peddling in connection with the construction, alteration, and repair of public improvements often result in poor quality of material and workmanship to the detriment of the public, deprive the public of the full benefits of fair competition among prime contractors and subcontractors, and lead to insolvencies, loss of wages to employees, and other evils. (Added by Stats. 1986, Ch. 195, Sec. 42.1.)
  127. 4103.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    This section says subcontractors and certain public entities keep any legal or equitable rights or remedies they may have against the prime contractor.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4103. Nothing in this chapter limits or diminishes any rights or remedies, either legal or equitable, which: (a) An original or substituted subcontractor may have against the prime contractor, his or her successors or assigns. (b) The state or any county, city, body politic, or public agency may have against the prime contractor, his or her successors or assigns, including the right to take over and complete the contract. (Added by Stats. 1986, Ch. 195, Sec. 42.1.)
  128. 4104.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    For public works bids, the bid documents must require bidders to list specified subcontractor details and the share of work each subcontractor will do.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4104. Any officer, department, board, or commission taking bids for the construction of any public work or improvement shall provide in the specifications prepared for the work or improvement or in the general conditions under which bids will be received for the doing of the work incident to the public work or improvement that any person making a bid or offer to perform the work, shall, in his or her bid or offer, set forth: (a) (1) The name, the location of the place of business, the California contractor license number, and public works contractor registration number issued pursuant to Section 1725.5 of the Labor Code of each subcontractor who will perform work or labor or render service to the prime contractor in or about the construction of the work or improvement, or a subcontractor licensed by the State of California who, under subcontract to the prime contractor, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications, in an amount in excess of one-half of 1 percent of the prime contractor’s total bid or, in the case of bids or offers for the construction of streets or highways, including bridges, in excess of one-half of 1 percent of the prime contractor’s total bid or ten thousand dollars ($10,000), whichever is greater. (2) An inadvertent error in listing the California contractor license number or public works contractor registration number provided pursuant to paragraph (1) shall not be grounds for filing a bid protest or grounds for considering the bid nonresponsive if the corrected contractor’s license number is submitted to the public entity by the prime contractor within 24 hours after the bid opening and provided the corrected contractor’s license number corresponds to the submitted name and location for that subcontractor. (3) (A) Subject to subparagraph (B), any information requested by the officer, department, board, or commission concerning any subcontractor who the prime contractor is required to list under this subdivision, other than the subcontractor’s name, location of business, the California contractor license number, and the public works contractor registration number, may be submitted by the prime contractor up to 24 hours after the deadline established by the officer, department, board, or commission for receipt of bids by prime contractors. (B) A state or local agency may implement subparagraph (A) at its option. (b) The portion of the work that will be done by each subcontractor under this act. The prime contractor shall list only one subcontractor for each portion as is defined by the prime contractor in his or her bid. (Amended by Stats. 2017, Ch. 28, Sec. 90. (SB 96) Effective June 27, 2017.)
  129. 4104.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    An officer, department, board, or commission taking bids for a public work must state where and when prime contractor bids will be received, extend the deadline by at least 72 hours after late material changes, and return late bids unopened.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4104.5. (a) The officer, department, board, or commission taking bids for construction of any public work or improvement shall specify in the bid invitation and public notice the place the bids of the prime contractors are to be received and the time by which they shall be received. The date and time shall be extended by no less than 72 hours if the officer, department, board, or commission issues any material changes, additions, or deletions to the invitation later than 72 hours prior to the bid closing. Any bids received after the time specified in the notice or any extension due to material changes shall be returned unopened. (b) As used in this section, the term “material change” means a change with a substantial cost impact on the total bid as determined by the awarding agency. (c) As used in this section, the term “bid invitation” shall include any documents issued to prime contractors that contain descriptions of the work to be bid or the content, form, or manner of submission of bids by bidders. (Amended by Stats. 2002, Ch. 204, Sec. 1. Effective January 1, 2003.)
  130. 4105.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    A general contractor bidding as a prime contractor may not evade the subcontractor-listing rule by routing work through another contractor.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4105. Circumvention by a general contractor who bids as a prime contractor of the requirement under Section 4104 for him or her to list his or her subcontractors, by the device of listing another contractor who will in turn sublet portions constituting the majority of the work covered by the prime contract, shall be considered a violation of this chapter and shall subject that prime contractor to the penalties set forth in Sections 4110 and 4111. (Added by Stats. 1986, Ch. 195, Sec. 42.1.)
  131. 4106.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    A prime contractor must do the work personally if no subcontractor is specified or more than one subcontractor is named for the same work portion over 0.5% of the total bid, and may face penalties for unauthorized subcontracting after award.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4106. If a prime contractor fails to specify a subcontractor or if a prime contractor specifies more than one subcontractor for the same portion of work to be performed under the contract in excess of one-half of 1 percent of the prime contractor’s total bid, the prime contractor agrees that he or she is fully qualified to perform that portion himself or herself, and that the prime contractor shall perform that portion himself or herself. If after award of contract, the prime contractor subcontracts, except as provided for in Sections 4107 or 4109, any such portion of the work, the prime contractor shall be subject to the penalties named in Section 4111. (Added by Stats. 1986, Ch. 195, Sec. 42.1.)
  132. 4107.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    A prime contractor whose bid is accepted may not replace, transfer, or certain subcontract work without the awarding authority’s consent.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4107. A prime contractor whose bid is accepted may not: (a) Substitute a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority, or its duly authorized officer, may, except as otherwise provided in Section 4107.5, consent to the substitution of another person as a subcontractor in any of the following situations: (1) When the subcontractor listed in the bid, after having had a reasonable opportunity to do so, fails or refuses to execute a written contract for the scope of work specified in the subcontractor’s bid and at the price specified in the subcontractor’s bid, when that written contract, based upon the general terms, conditions, plans, and specifications for the project involved or the terms of that subcontractor’s written bid, is presented to the subcontractor by the prime contractor. (2) When the listed subcontractor becomes insolvent or the subject of an order for relief in bankruptcy. (3) When the listed subcontractor fails or refuses to perform his or her subcontract. (4) When the listed subcontractor fails or refuses to meet the bond requirements of the prime contractor as set forth in Section 4108. (5) When the prime contractor demonstrates to the awarding authority, or its duly authorized officer, subject to the further provisions set forth in Section 4107.5, that the name of the subcontractor was listed as the result of an inadvertent clerical error. (6) When the listed subcontractor is not licensed pursuant to the Contractors License Law. (7) When the awarding authority, or its duly authorized officer, determines that the work performed by the listed subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or that the subcontractor is substantially delaying or disrupting the progress of the work. (8) When the listed subcontractor is ineligible to work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code. (9) When the awarding authority determines that a listed subcontractor is not a responsible contractor. Prior to approval of the prime contractor’s request for the substitution, the awarding authority, or its duly authorized officer, shall give notice in writing to the listed subcontractor of the prime contractor’s request to substitute and of the reasons for the request. The notice shall be served by certified or registered mail to the last known address of the subcontractor. The listed subcontractor who has been so notified has five working days within which to submit written objections to the substitution to the awarding authority. Failure to file these written objections constitutes the listed subcontractor’s consent to the substitution. If written objections are filed, the awarding authority shall give notice in writing of at least five working days to the listed subcontractor of a hearing by the awarding authority on the prime contractor’s request for substitution. (b) Permit a subcontract to be voluntarily assigned or transferred or allow it to be performed by anyone other than the original subcontractor listed in the original bid, without the consent of the awarding authority, or its duly authorized officer. (c) Other than in the performance of “change orders” causing changes or deviations from the original contract, sublet or subcontract any portion of the work in excess of one-half of 1 percent of the prime contractor’s total bid as to which his or her original bid did not designate a subcontractor. (Amended by Stats. 2009, Ch. 500, Sec. 58. (AB 1059) Effective January 1, 2010.)
  133. 4107.2.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    A listed carpeting subcontractor may not voluntarily sublet the subcontract unless that subcontractor was identified in the bid to the prime contractor.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4107.2. No subcontractor listed by a prime contractor under Section 4104 as furnishing and installing carpeting, shall voluntarily sublet his or her subcontract with respect to any portion of the labor to be performed unless he or she specified the subcontractor in his or her bid for that subcontract to the prime contractor. (Added by Stats. 1986, Ch. 195, Sec. 42.1.)
  134. 4107.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    This section requires a prime contractor claiming a subcontractor was listed by clerical error to give written notice quickly, lets the listed subcontractor object within a short deadline, and directs the awarding authority how to handle substitution disputes.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4107.5. The prime contractor as a condition to assert a claim of inadvertent clerical error in the listing of a subcontractor shall within two working days after the time of the prime bid opening by the awarding authority give written notice to the awarding authority and copies of that notice to both the subcontractor he or she claims to have listed in error and the intended subcontractor who had bid to the prime contractor prior to bid opening. Any listed subcontractor who has been notified by the prime contractor in accordance with this section as to an inadvertent clerical error shall be allowed six working days from the time of the prime bid opening within which to submit to the awarding authority and to the prime contractor written objection to the prime contractor’s claim of inadvertent clerical error. Failure of the listed subcontractor to file the written notice within the six working days shall be primary evidence of his or her agreement that an inadvertent clerical error was made. The awarding authority shall, after a public hearing as provided in Section 4107 and in the absence of compelling reasons to the contrary, consent to the substitution of the intended subcontractor: (a) If (1) the prime contractor, (2) the subcontractor listed in error, and (3) the intended subcontractor each submit an affidavit to the awarding authority along with such additional evidence as the parties may wish to submit that an inadvertent clerical error was in fact made, provided that the affidavits from each of the three parties are filed within eight working days from the time of the prime bid opening, or (b) If the affidavits are filed by both the prime contractor and the intended subcontractor within the specified time but the subcontractor whom the prime contractor claims to have listed in error does not submit within six working days, to the awarding authority and to the prime contractor, written objection to the prime contractor’s claim of inadvertent clerical error as provided in this section. If the affidavits are filed by both the prime contractor and the intended subcontractor but the listed subcontractor has, within six working days from the time of the prime bid opening, submitted to the awarding authority and to the prime contractor written objection to the prime contractor’s claim of inadvertent clerical error, the awarding authority shall investigate the claims of the parties and shall hold a public hearing as provided in Section 4107 to determine the validity of those claims. Any determination made shall be based on the facts contained in the declarations submitted under penalty of perjury by all three parties and supported by testimony under oath and subject to cross-examination. The awarding authority may, on its own motion or that of any other party, admit testimony of other contractors, any bid registries or depositories, or any other party in possession of facts which may have a bearing on the decision of the awarding authority. (Added by Stats. 1986, Ch. 195, Sec. 42.1.)
  135. 4107.7.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    A contractor on certain hazardous material or hazardous waste public-entity contracts must pay a registered hazardous-waste-hauler subcontractor within 10 days after the work is completed; if not paid, the subcontractor may serve a stop notice on the public entity.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4107.7. If a contractor who enters into a contract with a public entity for investigation, removal or remedial action, or disposal relative to the release or presence of a hazardous material or hazardous waste fails to pay a subcontractor registered as a hazardous waste hauler pursuant to Section 25163 of the Health and Safety Code within 10 days after the investigation, removal or remedial action, or disposal is completed, the subcontractor may serve a stop notice upon the public entity in accordance with Chapter 4 (commencing with Section 9350) of Title 3 of Part 6 of Division 4 of the Civil Code. (Amended by Stats. 2010, Ch. 697, Sec. 43. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697.)
  136. 4108.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    Subcontractors bidding to a prime contractor must be ready to provide performance and payment bonds if requested, and the prime contractor can reject the bid if the required bond is not furnished.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4108. (a) It shall be the responsibility of each subcontractor submitting bids to a prime contractor to be prepared to submit a faithful performance and payment bond or bonds if so requested by the prime contractor. (b) In the event any subcontractor submitting a bid to a prime contractor does not, upon the request of the prime contractor and at the expense of the prime contractor at the established charge or premium therefor, furnish to the prime contractor a bond or bonds issued by an admitted surety wherein the prime contractor shall be named the obligee, guaranteeing prompt and faithful performance of the subcontract and the payment of all claims for labor and materials furnished or used in and about the work to be done and performed under the subcontract, the prime contractor may reject the bid and make a substitution of another subcontractor subject to Section 4107. (c) (1) The bond or bonds may be required under this section only if the prime contractor in his or her written or published request for subbids clearly specifies the amount and requirements of the bond or bonds. (2) If the expense of the bond or bonds required under this section is to be borne by the subcontractor, that requirement shall also be specified in the prime contractor’s written or published request for subbids. (3) The prime contractor’s failure to specify bond requirements, in accordance with this subdivision, in the written or published request for subbids shall preclude the prime contractor from imposing bond requirements under this section. (Amended by Stats. 1991, Ch. 754, Sec. 1.)
  137. 4109.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    Subletting or subcontracting above a small threshold is only allowed in a public emergency or necessity, and only after the awarding authority makes a written public finding stating the facts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4109. Subletting or subcontracting of any portion of the work in excess of one-half of 1 percent of the prime contractor’s total bid as to which no subcontractor was designated in the original bid shall only be permitted in cases of public emergency or necessity, and then only after a finding reduced to writing as a public record of the awarding authority setting forth the facts constituting the emergency or necessity. (Added by Stats. 1986, Ch. 195, Sec. 42.1.)
  138. 4110.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    If a prime contractor violates this chapter, the contract is violated and the awarding authority may cancel the contract or impose a penalty up to 10% of the subcontract amount. The prime contractor is entitled to a public hearing and five days’ notice in proceedings under this section.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4110. A prime contractor violating any of the provisions of this chapter violates his or her contract and the awarding authority may exercise the option, in its own discretion, of (1) canceling his or her contract or (2) assessing the prime contractor a penalty in an amount of not more than 10 percent of the amount of the subcontract involved, and this penalty shall be deposited in the fund out of which the prime contract is awarded. In any proceedings under this section the prime contractor shall be entitled to a public hearing and to five days’ notice of the time and place thereof. (Added by Stats. 1986, Ch. 195, Sec. 42.1.)
  139. 4111.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    If a licensee under Chapter 9 violates this chapter, the Contractors State License Board may take disciplinary action, on top of the penalties in Section 4110.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4111. Violation of this chapter by a licensee under Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code constitutes grounds for disciplinary action by the Contractors State License Board, in addition to the penalties prescribed in Section 4110. (Added by Stats. 1986, Ch. 195, Sec. 42.1.)
  140. 4112.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    A contractor cannot rely on its failure to comply with this chapter as a defense in an action brought by a subcontractor.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4112. The failure on the part of a contractor to comply with any provision of this chapter does not constitute a defense to the contractor in any action brought against the contractor by a subcontractor. (Added by Stats. 1986, Ch. 195, Sec. 42.1.)
  141. 4113.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    This section defines “subcontractor” and “prime contractor” for this chapter.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4113. As used in this chapter, the word “subcontractor” shall mean a contractor, within the meaning of the provisions of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, who contracts directly with the prime contractor. “Prime contractor” shall mean the contractor who contracts directly with the awarding authority. (Added by Stats. 1986, Ch. 195, Sec. 42.1.)
  142. 4114.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. )

    Verify source ↗

    If the county board of supervisors is the awarding authority, it may delegate certain functions to a designated officer, who must make a written recommendation.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 4. Subletting and Subcontracting [4100 - 4114] ( Chapter 4 added by Stats. 1986, Ch. 195, Sec. 42.1. ) ## 4114. The county board of supervisors, when it is the awarding authority, may delegate its functions under Sections 4107 and 4110 to any officer designated by the board. The authorized officer shall make a written recommendation to the board of supervisors. The board of supervisors may adopt the recommendation without further notice or hearing, or may set the matter for a de novo hearing before the board. (Amended by Stats. 1989, Ch. 43, Sec. 1.)
  143. 5100.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. )

    Verify source ↗

    This section defines “public entity” and “bid” for this chapter.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. ) ## 5100. (a) “Public entity” means the state, Regents of the University of California, a county, city and county, city, district, public authority, public agency, and any other political subdivision or public corporation in the state. (b) “Bid” means any proposal submitted to a public entity in competitive bidding for the construction, alteration, repair, or improvement of any structure, building, road or other improvement of any kind. (Added by Stats. 1982, Ch. 435, Sec. 2.)
  144. 5101.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. )

    Verify source ↗

    A bidder generally cannot be relieved of a bid without the awarding authority’s consent, but may sue the public entity to recover the forfeited amount. If the state’s awarding authority agrees to relief because of mistake, it must prepare and make public a written report; in UC or CSU cases, the report is filed with the regents or trustees.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. ) ## 5101. (a) A bidder shall not be relieved of the bid unless by consent of the awarding authority nor shall any change be made in the bid because of mistake, but the bidder may bring an action against the public entity in a court of competent jurisdiction in the county in which the bids were opened for the recovery of the amount forfeited, without interest or costs. If the plaintiff fails to recover judgment, the plaintiff shall pay all costs incurred by the public entity in the suit, including a reasonable attorney’s fee to be fixed by the court. (b) If an awarding authority for the state consents to relieve a bidder of a bid because of mistake, the authority shall prepare a report in writing to document the facts establishing the existence of each element required by Section 5103. The report shall be available for inspection as a public record. In the case of the University of California or a California State University, the report shall be filed with the regents and the trustees, respectively, and shall be available as a public record. (Amended by Stats. 1994, Ch. 726, Sec. 21. Effective September 22, 1994.)
  145. 5102.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. )

    Verify source ↗

    A complaint must be filed and summons served, or an appearance made, within 90 days after bid opening, or the action will be dismissed.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. ) ## 5102. The complaint shall be filed, and summons served on the director of the department or the chief of the division or other head of the public entity under which the work is to be performed or an appearance made, within 90 days after the opening of the bid; otherwise, the action shall be dismissed. (Added by Stats. 1982, Ch. 435, Sec. 2.)
  146. 5103.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. )

    Verify source ↗

    A bidder must prove to the court that a bid mistake was made and that written notice was given to the public entity within five working days after bid opening.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. ) ## 5103. The bidder shall establish to the satisfaction of the court that: (a) A mistake was made. (b) He or she gave the public entity written notice within five working days, excluding Saturdays, Sundays, and state holidays, after the opening of the bids of the mistake, specifying in the notice in detail how the mistake occurred. (c) The mistake made the bid materially different than he or she intended it to be. (d) The mistake was made in filling out the bid and not due to error in judgment or to carelessness in inspecting the site of the work, or in reading the plans or specifications. (Amended by Stats. 2005, Ch. 270, Sec. 2. Effective January 1, 2006.)
  147. 5104.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. )

    Verify source ↗

    Except for notice to the public entity, no claim has to be filed before bringing the action.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. ) ## 5104. Other than the notice to the public entity, no claim is required to be filed before bringing the action. (Added by Stats. 1982, Ch. 435, Sec. 2.)
  148. 5105.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. )

    Verify source ↗

    A bidder who claims a mistake or forfeits bid security must not take part in further bidding on that project.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. ) ## 5105. A bidder who claims a mistake or who forfeits his or her bid security shall be prohibited from participating in further bidding on the project on which the mistake was claimed or security forfeited. (Added by Stats. 1982, Ch. 435, Sec. 2.)
  149. 5106.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. )

    Verify source ↗

    A public entity may award a contract to the second lowest bidder, or then to the third lowest bidder, if higher-ranked bidders refuse or fail to sign.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. ) ## 5106. If the public entity deems it is for its best interest, it may, on refusal or failure of the successful bidder to execute the contract, award it to the second lowest bidder. If the second lowest bidder fails or refuses to execute the contract, the public entity may likewise award it to the third lowest bidder. On the failure or refusal of the second or third lowest bidder to whom a contract is so awarded to execute it, his or her bidder’s security shall be likewise forfeited. (Added by Stats. 1982, Ch. 435, Sec. 2.)
  150. 5107.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. )

    Verify source ↗

    Courts must give chapter 5 actions priority over other civil cases for hearing, trial, and decision.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. ) ## 5107. In all actions brought under the provisions of this chapter, all courts wherein such actions are or may hereafter be pending, shall give such actions preference over all other civil actions therein, in the matter of setting the same for hearing or trial, and in hearing the same, to the end that all such actions shall be quickly heard and determined. (Added by Stats. 1982, Ch. 435, Sec. 2.)
  151. 5110.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. )

    Verify source ↗

    If a competitively bid contract is later found invalid because of bidding defects caused solely by the public entity, the contractor may be entitled to payment of reasonable costs, excluding profit, if the stated conditions are met.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 5. Relief of Bidders [5100 - 5110] ( Chapter 5 added by Stats. 1982, Ch. 435, Sec. 2. ) ## 5110. (a) When a project for the construction, alteration, repair, or improvement of any structure, building, or road, or other improvement of any kind is competitively bid and any intended or actual award of the contract is challenged, the contract may be entered into pending final decision of the challenge, subject to the requirements of this section. If the contract is later determined to be invalid due to a defect or defects in the competitive bidding process caused solely by the public entity, the contractor who entered into the contract with the public entity shall be entitled to be paid the reasonable cost, specifically excluding profit, of the labor, equipment, materials, and services furnished by the contractor prior to the date of the determination that the contract is invalid if all of the following conditions are met: (1) The contractor proceeded with construction, alteration, repair, or improvement based upon a good faith belief that the contract was valid. (2) The public entity has reasonably determined that the work performed is satisfactory. (3) Contractor fraud did not occur in the obtaining or performance of the contract. (4) The contract does not otherwise violate statutory or constitutional limitations. (b) In no event shall payment to the contractor pursuant to this section exceed either of the following: (1) The contractor’s costs as included in its bid plus the cost of any approved change orders. (2) The amount of the contract less profit at the point in time the contract is determined to be invalid. (c) Notwithstanding subdivision (a), this section shall not affect any protest and legal proceedings, whether contractual, administrative, or judicial, to challenge the award of the public works contract and enforce competitive bidding laws, nor affect any rights under Section 337.1 or 337.15 of the Code of Civil Procedure. (Added by Stats. 2003, Ch. 678, Sec. 2. Effective January 1, 2004.)
  152. 6100.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. )

    Verify source ↗

    Before awarding a contract, a state agency must verify that the contractor is properly licensed, or it may instead require a pocket license/certificate and a signed statement.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. ) ## 6100. (a) A state agency, as defined in Section 10335.7 that is subject to this code, shall, prior to awarding a contract for work to be performed by a contractor, as defined by Section 7026 of the Business and Professions Code, verify with the Contractors State License Board that the person seeking the contract is licensed in a classification appropriate to the work to be undertaken. Verification as required by this section need only be made once every two years with respect to the same contractor. (b) In lieu of the verification, the state entity may require the person seeking the contract to present his or her pocket license or certificate of licensure and provide a signed statement which swears, under penalty of perjury, that the pocket license or certificate of licensure presented is his or hers, is current and valid, and is in a classification appropriate to the work to be undertaken. (Amended by Stats. 2015, Ch. 303, Sec. 419. (AB 731) Effective January 1, 2016.)
  153. 6101.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. )

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    A state agency subject to this code may not award certain public works or purchase contracts to a bidder or contractor convicted within the last five years of violating laws on employing undocumented immigrants, and such a bidder or contractor is not eligible to bid for or receive those contracts.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. ) ## 6101. (a) A state agency, as defined in Section 10335.7, that is subject to this code, shall not award a public works or purchase contract to a bidder or contractor, nor shall a bidder or contractor be eligible to bid for or receive a public works or purchase contract, who has, in the preceding five years, been convicted of violating a state or federal law respecting the employment of undocumented immigrants. (b) For purposes of this section, “immigrant” means a person who is not a citizen or national of the United States. (Amended by Stats. 2021, Ch. 296, Sec. 55. (AB 1096) Effective January 1, 2022.)
  154. 6102.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. )

    Verify source ↗

    A contract entered because of bribery-related criminal conduct involving a public official may be voided. The section applies to contracts executed on or after January 1, 2023, including some negotiated earlier.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. ) ## 6102. (a) A contract that was entered into because of an act that would constitute a violation of a state or federal crime relating to bribery of a public official, including, but not limited to, a violation of Section 68 or 86 of the Penal Code is voidable. (b) This section applies to contracts executed on or after January 1, 2023, including contracts negotiated prior to January 1, 2023. (Added by Stats. 2022, Ch. 297, Sec. 1. (SB 34) Effective January 1, 2023.)
  155. 6106.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. )

    Verify source ↗

    State agencies and departments must follow this section when negotiating and executing certain professional consulting contracts, and they must give written negotiation instructions after selecting the successful firm.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. ) ## 6106. (a) Any state agency or department, which is subject to this code, shall follow this section in negotiating fees and executing a contract for professional consulting services of a private architectural, engineering, land surveying, environmental, or construction project management firm. (b) After providing notification to the successful firm of its selection, the state shall provide written instructions for the negotiations which are to follow. These instructions shall provide the private consulting firm with necessary information which shall allow the negotiations to proceed in an orderly fashion. Negotiations shall begin within 14 days after the successful firm has been notified of its selection or upon receipt of the cost proposal. The contractor should be notified if additional time is necessary to begin negotiations. (c) Upon the completion of negotiations, the state and the private firm shall proceed to execute a contract so that the contract may be completed by the state within 45 days. The contractor should be notified if additional time is necessary to complete the contract. The state and private firm shall work together to ensure the successful delivery of the requested services in a timely fashion. (d) In the event that an impasse is reached in negotiations, the state agency or department may terminate negotiations and enter into negotiations with the next most qualified firm as prescribed in Section 4528 of the Government Code. (Added by Stats. 1990, Ch. 1128, Sec. 2.)
  156. 6106.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. )

    Verify source ↗

    This section requires state agencies to include an escrow/retention provision in certain contracts, and it sets rules for how retention money, interest, and escrow fees are handled.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. ) ## 6106.5. (a) “State agency,” as used in this section, means those departments defined in Section 10106 of the Public Contract Code. (b) “Contractor,” as used in this section, means “firm,” “architectural, landscape architectural, engineering, environmental, and land surveying services,” “construction project management,” and “environmental services” as defined in Section 4525 of the Government Code. (c) State agencies shall include a provision in solicitations and in contracts, if the estimated amount to be retained exceeds ten thousand dollars ($10,000), and the retention continues for a period of 60 days beyond the completion of phased services, to permit, upon written request and the expense of the contractor, the payment of retentions earned directly to a state- or federally chartered bank in this state, as the escrow agent. The contractor may direct the investment of the payments into securities, pursuant to subdivision (d), and the contractor shall receive the interest earned on the investments. 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. State agencies, relative to contracts entered into prior to the enactment of this section, upon written request of the contractor, and subject to the approval of the state agency, may utilize the provisions of this section. (d) Securities eligible for investment under this section shall include those listed in Section 16430 of the Government Code, interest-bearing demand deposit accounts, or any other investment mutually agreed to by the contractor and the state agency. (e) (1) Any contractor who elects to receive interest on moneys withheld in retention by a state 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 state 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 fee. (3) No contractor shall require any subcontractor to waive any provision of this section. (f) 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 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.” (1) Pursuant to Section 6106.5 of the Public Contract Code of the State of California, upon written request of the contractor, the owner shall make payments of retention earnings required to be withheld by the owner pursuant to the professional consulting services agreement entered into between the owner and contractor for ____ in the amount of ____ dated ____ hereafter referred to as the “contract.” (2) 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 pursuant to Section 6106.5(d) of the Public Contract Code. 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. (3) 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. (4) The contractor shall have the right to withdraw all or any part of the principal or interest 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. (5) The owner shall have a right to draw upon the escrow account 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 distribute the cash as instructed by the owner. (6) 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 deposits and interest on deposits less escrow fees and charges of the escrow account. The escrow shall be closed immediately upon disbursement of all moneys on deposit and payments of fees and charges. (7) The escrow agent shall rely on the written notifications from the owner and the contractor pursuant to Sections (1) to (6), 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. (8) 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 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 (Amended by Stats. 2005, Ch. 22, Sec. 154. Effective January 1, 2006.)
  157. 6107.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. )

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    For construction contracts, state agencies must give qualifying California companies a reciprocal preference, and bidders and nonresident contractors must make specified certifications or disclosures.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. ) ## 6107. (a) As used in this section, “California company” means a sole proprietorship, partnership, joint venture, corporation, or other business entity that was a licensed California contractor on the date when bids for the public contract were opened and meets one of the following: (1) Has its principal place of business in California. (2) Has its principal place of business in a state in which there is no local contractor preference on construction contracts. (3) Has its principal place of business in a state in which there is a local contractor construction preference and the contractor has paid not less than five thousand dollars ($5,000) in sales or use taxes to California for construction related activity for each of the five years immediately preceding the submission of the bid. (b) (1) When awarding contracts for construction, a state agency shall grant a California company a reciprocal preference as against a nonresident contractor from any state that gives or requires a preference to be given contractors from that state on its public entity construction contracts. (2) The amount of the reciprocal preference shall be equal to the amount of the preference applied by the state of the nonresident contractor with the lowest responsive bid, except where the resident contractor is eligible for a California small business preference, in which case the preference applied shall be the greater of the two, but not both. (3) If the contractor submitting the lowest responsive bid is not a California company and has its principal place of business in any state that gives or requires the giving of a preference on its public entity construction contracts to contractors from that state, and if a California company has also submitted a responsive bid, and, with the benefit of the reciprocal preference, the California company’s bid is equal to or less than the original lowest responsive bid, the public entity shall award the contract to the California company at its submitted bid price. (c) (1) The bidder shall certify, under penalty of perjury, that the bidder qualifies as a California company. (2) A nonresident contractor shall, at the time of bidding, disclose to the awarding agency any and all bid preferences provided to the nonresident contractor by the state or country in which the nonresident contractor has its principal place of business. (d) The reciprocal preference is waived if the certification described in paragraph (1) of subdivision (c) does not appear on the bid. (e) This section does not apply if application of this section might jeopardize the receipt of federal funds or the nonresident contractor certifies, under penalty of perjury, in its bid that its state of residency does not give a preference for contractors from that state on its public entity construction contracts. (f) “Construction related activity” shall include, without limitation, any activity for which a California contractors’ license is required. (Amended by Stats. 1996, Ch. 279, Sec. 1. Effective January 1, 1997.)
  158. 6108.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. )

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    State agencies may only enter covered contracts if contractors certify goods were not produced with prohibited labor, and contractors must cooperate with compliance checks.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. ) ## 6108. (a) (1) Every contract entered into by any state agency for the procurement or laundering of apparel, garments, or corresponding accessories, or the procurement of equipment, materials, or supplies, other than procurement related to a public works contract, shall require that a contractor certify that no apparel, garments, corresponding accessories, equipment, materials, or supplies furnished to the state pursuant to the contract have been laundered or produced in whole or in part by sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor, or exploitation of children in sweatshop labor, or with the benefit of sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor, or exploitation of children in sweatshop labor. The contractor shall agree to comply with this provision of the contract. (2) The contract shall specify that the contractor is required to cooperate fully in providing reasonable access to the contractor’s records, documents, agents, employees, or premises if reasonably required by authorized officials of the contracting agency, the Department of Industrial Relations, or the Department of Justice determine the contractor’s compliance with the requirements under paragraph (1). (b) (1) Any contractor contracting with the state who knew or should have known that the apparel, garments, corresponding accessories, equipment, materials, or supplies furnished to the state were laundered or produced in violation of the conditions specified in subdivision (a) when entering into a contract pursuant to subdivision (a), may, subject to subdivision (c), have any or all of the following sanctions imposed: (A) The contract under which the prohibited apparel, garments, or corresponding accessories, equipment, materials, or supplies were laundered or provided may be voided at the option of the state agency to which the equipment, materials, or supplies were provided. (B) The contractor may be assessed a penalty that shall be the greater of one thousand dollars ($1,000) or an amount equaling 20 percent of the value of the apparel, garments, corresponding accessories, equipment, materials, or supplies that the state agency demonstrates were produced in violation of the conditions specified in paragraph (1) of subdivision (a) and that were supplied to the state agency under the contract. (C) The contractor may be removed from the bidder’s list for a period not to exceed 360 days. (2) Any moneys collected pursuant to this subdivision shall be deposited into the General Fund. (c) (1) When imposing the sanctions described in subdivision (b), the contracting agency shall notify the contractor of the right to a hearing, if requested, within 15 days of the date of the notice. The hearing shall be before an administrative law judge of the Office of Administrative Hearings in accordance with the procedures specified in Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. The administrative law judge shall take into consideration any measures the contractor has taken to ensure compliance with this section, and may waive any or all of the sanctions if it is determined that the contractor has acted in good faith. (2) The agency shall be assessed the cost of the administrative hearing, unless the agency has prevailed in the hearing, in which case the contractor shall be assessed the cost of the hearing. (d) (1) Any state agency that investigates a complaint against a contractor for violation of this section may limit its investigation to evaluating the information provided by the person or entity submitting the complaint and the information provided by the contractor. (2) Whenever a contracting officer of the contracting agency has reason to believe that the contractor failed to comply with paragraph (1) of subdivision (a), the agency shall refer the matter for investigation to the head of the agency and, as the head of the agency determines appropriate, to either the Director of Industrial Relations or the Department of Justice. (e) (1) For purposes of this section, “forced labor” shall have the same meaning as in Section 1307 of Title 19 of the United States Code. (2) “Abusive forms of child labor” means any of the following: (A) All forms of slavery or practices similar to slavery, such as the sale and trafficking of children, debt bondage, and serfdom and forced or compulsory labor, including forced or compulsory recruitment of children for use in armed conflict. (B) The use, procuring, or offering of a child for prostitution, for the production of pornography, or for pornographic performances. (C) The use, procuring, or offering of a child for illicit activities, in particular for the production and trafficking of illicit drugs. (D) All work or service exacted from or performed by any person under the age of 18 years either under the menace of any penalty for its nonperformance and for which the worker does not offer oneself voluntarily, or under a contract, the enforcement of which can be accomplished by process or penalties. (E) All work or service exacted from or performed by a child in violation of all applicable laws of the country of manufacture governing the minimum age of employment, compulsory education, and occupational health and safety. (3) “Exploitation of children in sweatshop labor” means all work or service exacted from or performed by any person under the age of 18 years in violation of more than one law of the country of manufacture governing wage and benefits, occupational health and safety, nondiscrimination, and freedom of association. (4) “Sweatshop labor” means all work or service exacted from or performed by any person in violation of more than one law of the country of manufacture governing wages, employee benefits, occupational health, occupational safety, nondiscrimination, or freedom of association. (5) “Apparel, garments, or corresponding accessories” includes, but is not limited to, uniforms. (6) Notwithstanding any other provision of this section, “forced labor” and “convict labor” do not include work or services performed by an inmate or a person employed by the California Correctional Training and Rehabilitation Authority. (7) “State agency” means any state agency in this state. (f) (1) On or before February 1, 2004, the Department of Industrial Relations shall establish a contractor responsibility program, including a Sweatfree Code of Conduct, to be signed by all bidders on state contracts and subcontracts. Any state agency responsible for procurement shall ensure that the Sweatfree Code of Conduct is available for public review at least 30 calendar days between the dates of receipt and the final award of the contract. The Sweatfree Code of Conduct shall list the requirements that contractors are required to meet, as set forth in subdivision (g). (2) Upon implementation in the manner described in paragraph (4), every contract entered into by any state agency for the procurement or laundering of apparel, garments, or corresponding accessories, or for the procurement of equipment or supplies, shall require that the contractor certify in accordance with the Sweatfree Code of Conduct that no apparel, garments, or corresponding accessories, or equipment, materials, or supplies, furnished to the state pursuant to the contract have been laundered or produced, in whole or in part, by sweatshop labor. (3) The appropriate procurement agency, in consultation with the Director of Industrial Relations, shall employ a phased and targeted approach to implementing the Sweatfree Code of Conduct. Sweatfree Code of Conduct procurement policies involving apparel, garments, and corresponding accessories may be permitted a phasein period of up to one year for purposes of feasibility and providing sufficient notice to contractors and the general public. The appropriate procurement agency, in consultation with the Director of Industrial Relations, shall target other procurement categories based on the magnitude of verified sweatshop conditions and the feasibility of implementation, and may set phasein goals and timetables of up to three years to achieve compliance with the principles of the Sweatfree Code of Conduct. (4) In order to facilitate compliance with the Sweatfree Code of Conduct, the Department of Industrial Relations shall explore mechanisms employed by other governmental entities, including, but not limited to, New Jersey Executive Order No. 20, of 2002, to ensure that businesses that contract with this state are in compliance with this section and any regulations or requirements promulgated in conformance with this section, as amended by Section 2 of Chapter 711 of the Statutes of 2003. The mechanisms explored may include, but not be limited to, authorization to contract with a competent nonprofit organization that is neither funded nor controlled, in whole or in part, by a corporation that is engaged in the procurement or laundering of apparel, garments, or corresponding accessories, or the procurement of equipment, materials, or supplies. The Department of Industrial Relations, in complying with this paragraph, shall also consider any feasible and cost-effective monitoring measures that will encourage compliance with the Sweatfree Code of Conduct. (5) To ensure public access and confidence, the Department of Industrial Relations shall ensure public awareness and access to proposed contracts by postings on the Internet and through communication to advocates for garment workers, unions, and other interested parties. The appropriate agencies shall establish a mechanism for soliciting and reviewing any information indicating violations of the Sweatfree Code of Conduct by prospective or current bidders, contractors, or subcontractors. The agencies shall make their findings public when they reject allegations against bidding or contracting parties. (6) Contractors shall ensure that their subcontractors comply in writing with the Sweatfree Code of Conduct, under penalty of perjury. Contractors shall attach a copy of the Sweatfree Code of Conduct to the certification required by subdivision (a). (g) No state agency may enter into a contract with any contractor unless the contractor meets the following requirements: (1) Contractors and subcontractors in California shall comply with all appropriate state laws concerning wages, workplace safety, rights to association and assembly, and nondiscrimination standards as well as appropriate federal laws. Contractors based in other states in the United States shall comply with all appropriate laws of their states and appropriate federal laws. For contractors whose locations for manufacture or assembly are outside the United States, those contractors shall ensure that their subcontractors comply with the appropriate laws of countries where the facilities are located. (2) Contractors and subcontractors shall maintain a policy of not terminating any employee except for just cause, and employees shall have access to a mediator or to a mediation process to resolve certain workplace disputes that are not regulated by the National Labor Relations Board. (3) Contractors and subcontractors shall ensure that workers are paid, at a minimum, wages and benefits in compliance with applicable local, state, and national laws of the jurisdiction in which the labor, on behalf of the contractor or subcontractor, is performed. Whenever a state agency expends funds for the procurement or laundering of apparel, garments, or corresponding accessories, or the procurement of equipment, materials, or supplies, other than procurement related to a public works contract, the applicable labor standards established by the local jurisdiction through the exercise of either local police powers or local spending powers in which the labor, in compliance with the contract or purchase order for which the expenditure is made, is performed shall apply with regard to the contract or purchase order for which the expenditure is made, unless the applicable local standards are in conflict with, or are explicitly preempted by, state law. A state agency may not require, as a condition for the receipt of state funds or assistance, that a local jurisdiction refrain from applying the labor standards that are otherwise applicable to that local jurisdiction. The Department of Industrial Relations may, without incurring additional expenses, access information from any nonprofit organization, including, but not limited to, the World Bank, that gathers and disseminates data with respect to wages paid throughout the world, to allow the Department of Industrial Relations to determine whether contractors and subcontractors are compensating their employees at a level that enables those employees to live above the applicable poverty level. (4) All contractors and subcontractors shall comply with the overtime laws and regulations of the country in which their employees are working. (5) All overtime hours shall be worked voluntarily. Workers shall be compensated for overtime at either (A) the rate of compensation for regular hours of work, or (B) as legally required in the country of manufacture, whichever is greater. (6) No person may be employed who is younger than the legal age for children to work in the country in which the facility is located. In no case may children under the age of 15 years be employed in the manufacturing process. Where the age for completing compulsory education is higher than the standard for the minimum age of employment, the age for completing education shall apply to this section. (7) There may be no form of forced labor of any kind, including slave labor, prison labor, indentured labor, or bonded labor, including forced overtime hours. (8) The work environment shall be safe and healthy and, at a minimum, be in compliance with relevant local, state, and national laws. If residential facilities are provided to workers, those facilities shall be safe and healthy as well. (9) There may be no discrimination in hiring, salary, benefits, performance evaluation, discipline, promotion, retirement, or dismissal on the basis of age, sex, pregnancy, maternity leave status, marital status, race, nationality, country of origin, ethnic origin, disability, sexual orientation, gender identity, religion, or political opinion. (10) No worker may be subjected to any physical, sexual, psychological, or verbal harassment or abuse, including corporal punishment, under any circumstances, including, but not limited to, retaliation for exercising their right to free speech and assembly. (11) No worker may be forced to use contraceptives or take pregnancy tests. No worker may be exposed to chemicals, including glues and solvents, that endanger reproductive health. (12) Contractors and bidders shall list the names and addresses of each subcontractor to be utilized in the performance of the contract, and list each manufacturing or other facility or operation of the contractor or subcontractor for performance of the contract. The list, which shall be maintained and updated to show any changes in subcontractors during the term of the contract, shall provide company names, owners or officers, addresses, telephone numbers, e-mail addresses, and the nature of the business association. (h) Any person who certifies as true any material matter pursuant to this section that they know to be false is guilty of a misdemeanor. (i) The provisions of this section, as amended by Section 2 of Chapter 711 of the Statutes of 2003, shall be in addition to any other provisions that authorize the prosecution and enforcement of local labor laws and may not be interpreted to prohibit a local prosecutor from bringing a criminal or civil action against an individual or business that violates the provisions of this section. (j) (1) The certification requirements set forth in subdivisions (a) and (f) do 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. 2025, Ch. 241, Sec. 63. (SB 857) Effective January 1, 2026.)
  159. 6109.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. )

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    Public entities may not let ineligible contractors or subcontractors bid, be awarded, or work on public works projects, and debarred subcontractors may not get public money for that work.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. ) ## 6109. (a) A public entity, as defined in Section 1100, may not permit a contractor or subcontractor who is ineligible to bid or work on, or be awarded, a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code to bid on, be awarded, or perform work as a subcontractor on, a public works project. Every public works project shall contain a provision prohibiting a contractor from performing work on a public works project with a subcontractor who is ineligible to perform work on the public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code. (b) Any contract on a public works project entered into between a contractor and a debarred subcontractor is void as a matter of law. A debarred subcontractor may not receive any public money for performing work as a subcontractor on a public works contract, and any public money that may have been paid to a debarred subcontractor by a contractor on the project shall be returned to the awarding body. The contractor shall be responsible for the payment of wages to workers of a debarred subcontractor who has been allowed to work on the project. (Added by Stats. 1998, Ch. 443, Sec. 3. Effective January 1, 1999.)
  160. 6610.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. )

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    Public agencies giving formal bid notices for projects with a mandatory prebid conference, site visit, or meeting must include the time, date, and location of that event and where project documents are available.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. ) ## 6610. Notice inviting formal bids for projects by a public agency that include a requirement for any type of mandatory prebid conference, site visit, or meeting shall include the time, date, and location of the mandatory prebid site visit, conference or meeting, and when and where project documents, including final plans and specifications are available. Any mandatory prebid site visit, conference or meeting shall not occur within a minimum of five calendar days of the publication of the initial notice. This provision shall not apply to the Regents of the University of California. (Added by Stats. 2000, Ch. 159, Sec. 1. Effective January 1, 2001.)
  161. 6611.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. )

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    The Department of General Services may use a negotiation process for certain contracts, must set procedures for it, and the Department of Technology must report annually on its use.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. ) ## 6611. (a) Notwithstanding any other law, the Department of General Services may, relative to contracts for goods, services, information technology, and telecommunications, use a negotiation process if the department finds that one or more of the following conditions exist: (1) The business need or purpose of a procurement or contract can be further defined as a result of a negotiation process. (2) The business need or purpose of a procurement or contract is known by the department, but a negotiation process may identify different types of solutions to fulfill this business need or purpose. (3) The complexity of the purpose or need suggests a bidder’s costs to prepare and develop a solicitation response are extremely high. (4) The business need or purpose of a procurement or contract is known by the department, but negotiation is necessary to ensure that the department is receiving the best value or the most cost-efficient goods, services, information technology, and telecommunications. (b) When it is in the best interests of the state, the department may negotiate amendments to the terms and conditions, including scope of work, of existing contracts for goods, services, information technology, and telecommunications, whether or not the original contract was the result of competition, on behalf of itself or another state agency. (c) (1) The department shall establish the procedures and guidelines for the negotiation process described in subdivision (a). Those procedures and guidelines shall include, but not be limited to, a clear description of the methodology that will be used by the department to evaluate a bid for the procurement of goods, services, information technology, and telecommunications. (2) The procedures and guidelines described in paragraph (1) may include provisions that authorize the department to receive supplemental bids after the initial bids are opened. If the procedures and guidelines include these provisions, the procedures and guidelines shall specify the conditions under which supplemental bids may be received by the department. (d) An unsuccessful bidder shall have no right to protest the results of the negotiating process undertaken pursuant to this section. As a remedy, an unsuccessful bidder may file a petition for a writ of mandate in accordance with Section 1085 of the Code of Civil Procedure. The venue for the petition for a writ of mandate shall be Sacramento, California. An action filed pursuant to this subdivision shall be given preference by the court. (e) (1) The Department of Technology may utilize the negotiation process described in subdivisions (a) and (b) for the purpose of procuring information technology and telecommunications goods and services on behalf of state departments and information technology projects. (2) Nothing in this section shall be interpreted to supersede the department’s existing statutory control over procurement processes as dictated in Section 12100. (f) On or before January 1, 2013, and annually thereafter, the Department of Technology shall report to the relevant budget subcommittees of each house of the Legislature on the use of subdivision (e) during budget hearings. (Amended by Stats. 2018, Ch. 335, Sec. 2. (SB 1505) Effective January 1, 2019.)
  162. 6615.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. )

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    State contracts, and federally funded contracts where feasible, must comply with Section 12205.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6. Awarding of Contracts [6100 - 6615] ( Chapter 6 added by Stats. 1986, Ch. 1230, Sec. 2. ) ## 6615. For all state contracts, and, to the extent feasible, all federally funded contracts awarded pursuant to Chapter 1 (commencing with Section 10100), Chapter 2 (commencing with Section 10290), Chapter 2.5 (commencing with Section 10700), Chapter 3 (commencing with Section 12100), Chapter 3.5 (commencing with Section 12120), and Chapter 3.6 (commencing with Section 12125) of Part 2 of Division 2 shall be in compliance with Section 12205. (Added by Stats. 2005, Ch. 590, Sec. 1. Effective January 1, 2006.)
  163. 6700.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. )

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    This section creates an alternative procurement procedure for certain transportation projects and lets the Department of Transportation engage a construction manager during design.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. ) ## 6700. (a) This chapter provides for an alternative procurement procedure for certain transportation projects performed by the Department of Transportation. (b) 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. (Amended by Stats. 2018, Ch. 465, Sec. 2. (SB 1262) Effective January 1, 2019.)
  164. 6701.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. )

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    The department may use the Construction Manager/General Contractor method in specified projects, but must advertise, award, and administer those contracts itself and generally may not delegate contracting authority.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. ) ## 6701. (a) The Construction Manager/General Contractor method provided by this chapter may be used by the department, but is not limited to, when it is anticipated that the Construction Manager/General Contractor 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 chapter, the department shall advertise, award, and administer the Construction Manager/General Contractor contract. The department shall not delegate the contracting authority, except for the two projects reserved for projects in the County of Riverside as provided for in paragraph (2) of subdivision (b). (b) (1) The department may use the Construction Manager/General Contractor method for projects that have construction costs greater than ten million dollars ($10,000,000). (2) Consistent with Provision 2 of Item 2660-110-0042 of Section 2.00 of the Budget Act of 2016, as amended by Chapter 7 of the Statutes of 2017, two projects shall be authorized for projects in the County of Riverside and the Riverside County Transportation Commission may use the Construction Manager/General Contractor method for these projects, with the first priority for the projects listed in that budget item. (c) On at least two-thirds of the projects delivered by the department utilizing the Construction Manager/General Contractor method provided by this chapter, 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. Department resources, including personnel requirements, necessary to perform all services described in this subdivision shall be included in the department’s capital outlay support program for workload purposes in the annual Budget Act. (d) (1) The department shall prepare and submit to the Legislature an interim report no later than July 1, 2021, that describes each Construction Manager/General Contractor project approved under this chapter as of January 1, 2021, and that provides relevant data, including, but not limited to, district, cost, the stage of completion, and estimated time to completion. The department shall also prepare and submit to the Legislature a final report, no later than July 1, 2025, that provides the same relevant data for projects that were approved under this chapter as of January 1, 2025. Both the interim and final reports shall also provide a comprehensive assessment on the effectiveness of the Construction Manager/General Contractor project delivery method relative to project cost and time savings. (2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code. (Amended by Stats. 2018, Ch. 465, Sec. 3. (SB 1262) Effective January 1, 2019.)
  165. 6702.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. )

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    This section defines key terms used in the chapter about Construction Manager/General Contractor authority for the Department of Transportation.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. ) ## 6702. As used in this chapter, the following terms have the following meanings: (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, or that contracts with entities that are able to provide, appropriately licensed contracting or engineering services, or both 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 Transportation as established under Part 5 (commencing with Section 14000) of Division 3 of Title 2 of the Government Code. (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 the construction of a highway, bridge, or tunnel. (Amended by Stats. 2019, Ch. 289, Sec. 1. (AB 1475) Effective January 1, 2020.)
  166. 6703.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. )

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    The department must use an RFQ process to evaluate and select construction managers, and construction services may proceed only after required negotiations and written price/schedule agreements are in place.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. ) ## 6703. 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 entity 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 bid submission who will participate in the Construction Manager/General Contractor method contract, including, but not limited to, subcontractors. (B) Evidence that the members of the entity 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 entity 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 entity 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, contained in 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 entity, and information concerning workers’ compensation experience history and a 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 an entity, 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 entity, 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 entity. (I) Information concerning the bankruptcy or receivership of any member of the entity, 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 entity 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 the manager’s experience modification rate for the most recent three-year period is an average of 1.00 or less, and the manager’s 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 or if the manager is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code. (2) The information required pursuant to this subdivision shall be verified under oath by the entity 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 chapter 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 services contract. A preconstruction services contract 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. In the event that 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 6705. (Amended by Stats. 2021, Ch. 615, Sec. 354. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
  167. 6704.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. )

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    Construction managers selected under this chapter must have enough bonding and insurance, and payment or performance bonds must use a department-developed bond form.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. ) ## 6704. (a) Any construction manager that is selected to construct a project pursuant to this chapter 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 chapter shall be written using a bond form developed by the department. (Added by Stats. 2012, Ch. 752, Sec. 1. (AB 2498) Effective January 1, 2013.)
  168. 6705.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. )

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    Construction managers must give subcontractors required protections, public notice of subcontracted work, a fixed award date and time, and follow department subcontracting procedures; they may also use 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 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. ) ## 6705. All subcontractors bidding on contracts pursuant to this chapter 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. 2012, Ch. 752, Sec. 1. (AB 2498) Effective January 1, 2013.)
  169. 6706.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. )

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    The department may hire a design professional, a construction project manager, or both, for the project.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. ) ## 6706. 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 chapter. (Added by Stats. 2012, Ch. 752, Sec. 1. (AB 2498) Effective January 1, 2013.)
  170. 6707.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. )

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    Contracts awarded under this chapter remain valid until the project is completed.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. ) ## 6707. Contracts awarded pursuant to this chapter shall be valid until the project is completed. (Added by Stats. 2012, Ch. 752, Sec. 1. (AB 2498) Effective January 1, 2013.)
  171. 6708.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. )

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    This chapter is not intended to change 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 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.3. Construction Manager/General Contractor Authority: Department of Transportation [6700 - 6708] ( Chapter 6.3 added by Stats. 2012, Ch. 752, Sec. 1. ) ## 6708. Nothing in this chapter is intended to affect, expand, alter, or limit any rights or remedies otherwise available at law. (Added by Stats. 2012, Ch. 752, Sec. 1. (AB 2498) Effective January 1, 2013.)
  172. 6820.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. )

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    This section defines key terms used in the Transportation Design-Build Program chapter.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. ) ## 6820. For purposes of this chapter, the following definitions apply: (a) “Best value” means a value determined by objective criteria, including, but not limited to, price, features, functions, life-cycle costs, and other criteria deemed appropriate by the transportation entity. (b) “Commission” means the California Transportation Commission. (c) “Design-build” means a procurement process in which both the design and construction of a project are procured from a single entity. (d) “Design-build entity” means a partnership, corporation, 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 team” means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. (f) “Department” means the Department of Transportation as established under Part 5 (commencing with Section 14000) of Division 3 of Title 2 of the Government Code. (g) “Expressway” means expressway as defined in Section 257 of the Streets and Highways Code. (h) “Interfacing with the state highway system” means work performed within the state highway right-of-way, including airspace over or under that property, or work performed upon property acquired by the department for construction of a state highway, including airspace over or under that property. (i) “Regional transportation agency” means any of the following: (1) A transportation planning agency described in Section 29532 or 29532.1 of the Government Code. (2) A county transportation commission established under Section 130050, 130050.1, or 130050.2 of the Public Utilities Code. (3) Any other local or regional transportation entity that is designated by statute as a regional transportation agency. (4) A joint exercise of powers authority established pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code, with the consent of a transportation planning agency or a county transportation commission for the jurisdiction in which the transportation project will be developed. (5) A local transportation authority designated pursuant to Division 12.5 (commencing with Section 131000) or Division 19 (commencing with Section 180000) of the Public Utilities Code. (6) The Santa Clara Valley Transportation Authority established pursuant to Part 12 (commencing with Section 100000) of Division 10 of the Public Utilities Code. (j) “Transportation entity” means the department or a regional transportation agency. (Added by Stats. 2013, Ch. 586, Sec. 3. (AB 401) Effective January 1, 2014. Repealed conditionally on or before January 1, 2034, pursuant to Section 6829.)
  173. 6821.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. )

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    This section lets the department and certain regional transportation agencies use design-build procurement for specified transportation projects, while barring cities and counties from using it under this chapter.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. ) ## 6821. (a) The department may utilize the design-build method of procurement for up to 10 projects, and an additional 6 projects per fiscal year in the 2022–23 and 2023–24 fiscal years, on the state highway system, based on either best value or lowest responsible bid. (b) A regional transportation agency may utilize the design-build method of procurement to design and construct projects on or adjacent to the state highway system, including related nonhighway portions of the project, based on either best value or lowest responsible bid. A regional transportation agency and the department shall enter into a cooperative agreement reflecting the roles and responsibilities assigned by law for a project on or interfacing with the state highway system authorized under this subdivision. The cooperative agreement shall also include the requirement to develop a mutually agreed upon issue resolution process with a primary objective to ensure the project stays on schedule and issues between the parties are resolved in a timely manner. (c) (1) A regional transportation agency may utilize the design-build method of procurement, based on either best value or lowest responsible bid, to design and construct projects on expressways that are not on the state highway system if the projects are developed in accordance with an expenditure plan approved by voters as of January 1, 2014. (2) The entity responsible for the maintenance of the local streets and roads within the jurisdiction of the expressway shall be responsible for the maintenance of the expressway. (d) A city, county, or city and county shall not utilize the design-build method of procurement under this chapter. A regional transportation agency shall not utilize the design-build method of procurement on behalf of a city, county, or city and county. (e) The design-build authorization in subdivisions (a) and (b) 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 consistent with Section 91.2 of the Streets and Highway Code. (f) (1) Not later than the first day of July that occurs two years after a design-build contract is awarded, and each July 1 thereafter until a project is completed, the department or the regional transportation agency shall submit a report on the progress of the project and compliance with this section to the legislative policy committees having jurisdiction over transportation matters. (2) The requirement of submitting a report imposed under paragraph (1) is inoperative on the first day of July four years after the first report was submitted, pursuant to Section 10231.5 of the Government Code. (3) A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code. (Amended by Stats. 2022, Ch. 71, Sec. 7. (SB 198) Effective June 30, 2022. Repealed conditionally on or before January 1, 2034, pursuant to Section 6829.)
  174. 6822.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. )

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    The commission must use specified guidelines to create a standard conflict-of-interest policy for design-build work, and that policy applies to transportation entities entering design-build contracts under this chapter.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. ) ## 6822. The commission shall use the guidelines developed pursuant to subdivision (e) of Section 6803, as it read on December 31, 2013, to provide a standard organizational conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity, that performs services for the transportation entity 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 the transportation entity entering into design-build contracts authorized under this chapter. (Added by Stats. 2013, Ch. 586, Sec. 3. (AB 401) Effective January 1, 2014. Repealed conditionally on or before January 1, 2034, pursuant to Section 6829.)
  175. 6823.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. )

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    Some public works design-build contracts require a transportation entity to set up and enforce a labor compliance program, or hire a third party to run one; later-awarded projects are subject to Section 1771.4.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. ) ## 6823. (a) For contracts for public works projects awarded prior January 1, 2012, a transportation entity authorized to use the design-build method of procurement shall establish and enforce a labor compliance program containing the requirements outlined in Section 1771.5 of the Labor Code or shall contract with a third party to operate a labor compliance program containing the requirements outlined in Section 1771.5 of the Labor Code. This requirement shall not apply to projects where the transportation entity or design-build entity has entered into any collective bargaining agreement that binds all of the contractors performing work on the projects. (b) For contracts for public works projects awarded on or after January 1, 2012, the project shall be subject to the requirements of Section 1771.4 of the Labor Code. (Repealed and added by Stats. 2014, Ch. 28, Sec. 76. (SB 854) Effective June 20, 2014. Repealed conditionally on or before January 1, 2034, pursuant to Section 6829.)
  176. 6824.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. )

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    This section sets the steps a transportation entity must follow for design-build procurement, including preparing project documents, issuing a request for proposals, and issuing a request for qualifications.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. ) ## 6824. The procurement process for the design-build project shall progress as follows: (a) A transportation entity shall prepare a set of documents setting forth the scope and estimated price of a 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, and any other information deemed necessary to describe adequately the transportation entity’s needs. The performance specifications and any plans shall be prepared by a design professional who is duly licensed and registered in California. (b) Based on the documents prepared as described in subdivision (a), the transportation entity shall prepare a request for proposals that invites interested parties to submit competitive sealed proposals in the manner prescribed by the transportation entity. 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 transportation entity to evaluate proposals, whether the contract will be awarded on the basis of the lowest responsible bid or on best value, and any other information deemed necessary by the transportation entity to inform interested parties of the contracting opportunity. (2) Significant factors that the transportation entity 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) For transportation entities authorized to utilize best value as a selection method, the transportation entity reserves the right to request proposal revisions and hold discussions and negotiations with responsive bidders and shall so specify in the request for proposals and shall publish separately or incorporate into the request for proposals applicable rules and procedures to be observed by the transportation entity to ensure that any discussions or negotiations are conducted in good faith. (c) Based on the documents prepared under subdivision (a), the transportation entity 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 transportation entity to evaluate proposals, the procedure for final selection of the design-build entity, and any other information deemed necessary by the transportation entity to inform interested parties of the contracting opportunity. (2) (A) Significant factors that the transportation entity reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, skilled labor force availability, and all other nonprice-related factors. (B) For purposes of subparagraph (A), skilled labor force availability shall be determined by the existence of an agreement with a registered apprenticeship program, approved by the California Apprenticeship Council, that has graduated at least one apprentice in each of the preceding five years. This graduation requirement shall not apply to programs providing apprenticeship training for any craft that was first deemed by the Department of Labor and the Department of Industrial Relations to be an apprenticeable craft within the five years prior to the effective date of this article. (3) A standard form request for statements of qualifications prepared by the transportation entity. In preparing the standard form, the transportation entity may consult with the construction industry, the building trades and surety industry, and other public agencies interested in using the authorization provided by this chapter. The standard form shall require information including, but not limited to, all of the following: (A) If the design-build entity is a partnership, limited partnership, joint venture, or other association, a listing of all of the partners, general partners, or association members known at the time of statement of qualification submission who will participate in the design-build contract. (B) Evidence that the members of the design-build entity 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 assures the transportation entity 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) A full disclosure regarding all of the following that are 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 where 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 where 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 Contribution Act (FICA) 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 exceeds fifty thousand dollars ($50,000). Information shall also be provided concerning any work completed by a surety during this five-year period. (G) If the proposed design-build entity is a partnership, limited partnership, joint-venture, or other association, a copy of the organizational documents or agreement committing to form the organization, and a statement that all general partners, joint venture members, or other association members agree to be fully liable for the performance under the design-build contract. (H) An acceptable safety record. A bidder’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/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 bidder is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code. (4) The information required under this subdivision shall be verified under oath by the design-build entity and its members in the manner in which civil pleadings in civil actions are verified. Information required under this subdivision that is not a public record under the California Public Records Act, as described in Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code, shall not be open to public inspection. (d) 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. Awards shall be made to the lowest responsible bidder. (e) 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. However, the following minimum factors shall be weighted as deemed appropriate by the contracting transportation entity: (A) Price. (B) Technical design and construction expertise. (C) Life-cycle costs over 15 years or more. (2) Pursuant to subdivision (b), the transportation entity may hold discussions or negotiations with responsive bidders using the process articulated in the transportation entity’s request for proposals. (3) When the evaluation is complete, the top three responsive bidders shall be ranked sequentially based on a determination of value provided. (4) The award of the contract shall be made to the responsible bidder whose proposal is determined by the transportation entity to have offered the best value to the public. (5) Notwithstanding any other provision of this code, upon issuance of a contract award, the transportation entity shall publicly announce its award, identifying the contractor to whom the award is made, along with a written decision supporting its contract award and stating the basis of the award. The notice of award shall also include the transportation entity’s second- and third-ranked design-build entities. (6) The written decision supporting the transportation entity’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. 355. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615. Repealed conditionally on or before January 1, 2034, pursuant to Section 6829.)
  177. 6825.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. )

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

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. ) ## 6825. (a) The design-build entity shall provide payment and performance bonds for the project in the form and in the amount required by the transportation entity, and issued by a California admitted surety. In no case shall the amount of the payment bond 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. (Added by Stats. 2013, Ch. 586, Sec. 3. (AB 401) Effective January 1, 2014. Repealed conditionally on or before January 1, 2034, pursuant to Section 6829.)
  178. 6826.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. )

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    In design-build requests, the transportation entity may specify subcontractor types, and design-build entities must follow notice, timing, qualification, and award rules for subcontracts not listed in the request for proposals.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. ) ## 6826. (a) The transportation entity, 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 of Division 2. (b) In awarding subcontracts not listed in the request for proposals, the design-build entity shall do all of the following: (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 transportation entity. (2) Provide a fixed date and time on which the subcontracted work will be awarded. (3) Establish reasonable qualification criteria and standards. (4) Provide that the subcontracted construction work shall be awarded either on a best value basis or to the lowest responsible bidder. For construction work awarded on a best value basis, the design-build entity shall evaluate all bids utilizing the factors described in paragraph (1) of subdivision (e) of Section 6824, and shall award the contract to the bidder determined by the design-build entity to have offered the best value. (c) Subcontractors awarded subcontracts under this chapter shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1 of Division 2. (Added by Stats. 2013, Ch. 586, Sec. 3. (AB 401) Effective January 1, 2014. Repealed conditionally on or before January 1, 2034, pursuant to Section 6829.)
  179. 6826.5.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. )

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    The department must submit a report to legislative transportation and fiscal committees by January 1, 2033 about its experience using the design-build procurement method.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. ) ## 6826.5. The department shall submit a report to the transportation and fiscal committees of the Legislature on or before January 1, 2033, on its experience with use of the design-build method of procurement pursuant to this chapter, in terms of the relative costs and value of, and time to complete, projects that used the design-build method of procurement. (Added by Stats. 2021, Ch. 212, Sec. 1. (AB 1499) Effective January 1, 2022. Repealed conditionally on or before January 1, 2034, pursuant to Section 6829.)
  180. 6827.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. )

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    This section says the chapter 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 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. ) ## 6827. Nothing in this chapter affects, expands, alters, or limits any rights or remedies otherwise available at law. (Added by Stats. 2013, Ch. 586, Sec. 3. (AB 401) Effective January 1, 2014. Repealed conditionally on or before January 1, 2034, pursuant to Section 6829.)
  181. 6828.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. )

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    This chapter is severable, so if one part is invalid, the rest can still operate when possible.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. ) ## 6828. The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (Added by Stats. 2013, Ch. 586, Sec. 3. (AB 401) Effective January 1, 2014. Repealed conditionally on or before January 1, 2034, pursuant to Section 6829.)
  182. 6829.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. )

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    This chapter ends on January 1, 2034, or earlier if the stated court-invalidity condition happens; existing executed design-build contracts and cooperative agreements are not affected by the repeal.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.5. Transportation Design-Build Program [6820 - 6829] ( Chapter 6.5 added by Stats. 2013, Ch. 586, Sec. 3. ) ## 6829. (a) This chapter shall remain in effect only until January 1, 2034, and as of that date is repealed. (b) Notwithstanding subdivision (a), if any provision or application of Section 91.2 of the Streets and Highways Code is held invalid by a court of competent jurisdiction, this chapter shall be repealed one year from the date in which the department posts on its internet website that Section 91.2 of the Streets and Highways Code has been held invalid. (c) The repeal of this chapter shall not affect an executed design-build contract or cooperative agreement entered into pursuant to this chapter prior to the date of its repeal, regardless of the stage of the project at the time of repeal. (Amended by Stats. 2021, Ch. 212, Sec. 2. (AB 1499) Effective January 1, 2022. Repealed conditionally on or before January 1, 2034, by its own provisions. Note: Repeal affects Chapter 6.5, commencing with Section 6820.)
  183. 6950.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. )

    Verify source ↗

    The Legislature states that alternative public works delivery methods should be evaluated, and that this chapter is not a preference for those methods over others.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. ) ## 6950. The Legislature finds and declares all of the following: (a) The alternative public works project delivery methods authorized under this chapter should be evaluated for the purposes of exploring whether the potential exists for reduced project costs, expedited project completion, or design features that are not achievable through the traditional project delivery methods. (b) The design sequencing and Construction Manager/General Contractor project delivery methods rely on existing design-bid-build and design-build procurement methods respectively and have been successfully used by both public and private sector entities in California and other states for over a decade on projects that require a quick startup as they allow construction to begin before the design plans are complete for the entire project. (c) Both methods also have the benefit of allowing for earlier collaboration between the project owner and construction contractor. (d) This chapter shall not be deemed to provide a preference for these project delivery methods over other delivery methodologies. (Added by Stats. 2012, Ch. 767, Sec. 1. (SB 1549) Effective January 1, 2013.)
  184. 6951.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. )

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    This section defines key terms used in the chapter, including CMGC, design sequencing, construction manager, the Department, and the San Diego Association of Governments.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. ) ## 6951. For purposes of this chapter, the following definitions apply: (a) “Alternative project delivery method” means either Construction Manager/General Contractor method or design sequencing. (b) “Construction Manager/General Contractor method” or “CMGC” means a project delivery method using a best value procurement process 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 execution of the design and the construction of the project may be in sequential phases or concurrent phases. (c) “Construction manager” means a partnership, corporation, or other legal entity that is able to provide appropriately licensed contracting and engineering services as needed pursuant to a CMGC contract. (d) “Design sequencing” means a method of project delivery that enables the sequencing of design activities to permit each construction phase to commence when the design for that phase is complete, instead of requiring design for the entire project to be completed before commencing construction. (e) “Department” means the Department of Transportation as established under Part 5 (commencing with Section 14000) of Division 3 of the Government Code. (f) “San Diego Association of Governments” means the consolidated agency created pursuant to Chapter 3 (commencing with Section 132350) of Division 12.7 of the Public Utilities Code. (Added by Stats. 2012, Ch. 767, Sec. 1. (SB 1549) Effective January 1, 2013.)
  185. 6952.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. )

    Verify source ↗

    The San Diego Association of Governments may use alternative project delivery methods for public transit projects and may enter into contracts under this chapter if it first evaluates the methods in a public meeting and makes a written finding supporting the choice.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. ) ## 6952. (a) Subject to the limitations of this chapter, the San Diego Association of Governments may utilize the alternative project delivery methods for public transit projects within the jurisdiction of the San Diego Association of Governments. (b) The San Diego Association of Governments may enter into an alternative project delivery method contract pursuant to this chapter if, after evaluation of the traditional design-bid-build process of construction and of the alternative project delivery method in a public meeting, the San Diego Association of Governments makes a written finding that use of the alternative project delivery method on the specific project under consideration will accomplish one or more of the following objectives: reduce project costs, expedite the project’s completion, or provide features not achievable through the design-bid-build method. This finding must be made prior to the San Diego Association of Governments entering into an alternative project delivery method contract. In the alternative project delivery method proposal, the written findings shall be included as part of any application for state funds pursuant to this chapter. (Added by Stats. 2012, Ch. 767, Sec. 1. (SB 1549) Effective January 1, 2013.)
  186. 6953.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. )

    Verify source ↗

    Public works projects contracted under this chapter must comply with Section 1771.4 of the Labor Code.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. ) ## 6953. Any public works project that is contracted for pursuant to this chapter shall be subject to the requirements of Section 1771.4 of the Labor Code. (Repealed and added by Stats. 2014, Ch. 28, Sec. 77. (SB 854) Effective June 20, 2014.)
  187. 6954.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. )

    Verify source ↗

    For CMGC contracts with preconstruction services, the San Diego Association of Governments must sign a written preconstruction contract, pay an agreed fee, and wait until that services contract is in place before seeking a fixed or guaranteed maximum price or entering a construction contract.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. ) ## 6954. (a) If a contract for CMGC services is entered into pursuant to this chapter and includes preconstruction services by the construction manager, the San Diego Association of Governments shall enter into a written contract with the construction manager for preconstruction services, under which the San Diego Association of Governments shall pay the construction manager a fee for preconstruction services in an amount agreed upon by the San Diego Association of Governments and the construction manager. The preconstruction services contract may include fees for services to be performed during the contract period; provided, however, the San Diego Association of Governments 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 San Diego Association of Governments has entered into a services contract. A preconstruction services contract shall provide for the subsequent negotiation for construction of all or any discrete phase or phases of the project and shall provide for the San Diego Association of Governments to own the design plans and other preconstruction services work product. (b) A contract for construction services will be awarded after the plans have been sufficiently developed and either a fixed price or a guaranteed maximum price has been successfully negotiated. In the event that a fixed price or a guaranteed maximum price is not negotiated, the San Diego Association of Governments may award the contract for construction services utilizing any other procurement method authorized by law. (c) 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 6955. (Added by Stats. 2012, Ch. 767, Sec. 1. (SB 1549) Effective January 1, 2013.)
  188. 6955.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. )

    Verify source ↗

    Subcontractors bidding on contracts under this chapter must be given the protections in Chapter 4, starting with Section 4100.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. ) ## 6955. All subcontractors bidding on contracts pursuant to this chapter shall be afforded the protections contained in Chapter 4 (commencing with Section 4100). (Added by Stats. 2012, Ch. 767, Sec. 1. (SB 1549) Effective January 1, 2013.)
  189. 6956.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. )

    Verify source ↗

    This chapter does not affect, expand, alter, or limit 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 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. ) ## 6956. Nothing in this chapter affects, expands, alters, or limits any rights or remedies otherwise available at law. (Added by Stats. 2012, Ch. 767, Sec. 1. (SB 1549) Effective January 1, 2013.)
  190. 6957.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. )

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    After a project using an alternative project delivery method is completed, the San Diego Association of Governments must prepare a progress report for its governing body and post it on its website.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. ) ## 6957. (a) Upon completion of a project using an alternative project delivery method, the San Diego Association of Governments shall prepare a progress report to its governing body. The progress report shall include, but shall not be limited to, all of the following information: (1) A description of the project. (2) The entity that was awarded the project. (3) The estimated and actual costs of the project. (4) The estimated and actual schedule for project completion. (5) A description of any written protests concerning any aspect of the solicitation, bid, proposal, or award of the project, including, but not limited to, the resolution of the protests. (6) An assessment of the prequalification process and criteria utilized under this chapter if the CMGC procurement method is used. (7) A description of the method used to evaluate the bid or proposal, including the weighting of each factor and an assessment of the impact of this requirement on a project. (8) A description of any challenges or unexpected problems that arose during the construction of the project and a description of the solutions that were considered and ultimately implemented to address those challenges and problems. (9) Recommendations to improve the alternative project delivery methods authorized under this chapter. (b) The progress report shall be made available on the San Diego Association of Governments’ Internet Web site. (Added by Stats. 2012, Ch. 767, Sec. 1. (SB 1549) Effective January 1, 2013.)
  191. 6958.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. )

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    This section says the chapter is severable, and contracts awarded under it remain valid until the project is completed.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.6. Alternative Project Delivery Program: Construction Manager/General Contractor Authority [6950 - 6958] ( Chapter 6.6 added by Stats. 2012, Ch. 767, Sec. 1. ) ## 6958. (a) The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (b) Contracts awarded pursuant to this section shall be valid until the project is completed. (Added by Stats. 2012, Ch. 767, Sec. 1. (SB 1549) Effective January 1, 2013.)
  192. 6970.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.7. Construction Manager/General Contractor Method: Regional Projects on Expressways [6970 - 6974] ( Chapter 6.7 added by Stats. 2015, Ch. 413, Sec. 1. )

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    This section creates an alternative procurement procedure for certain transportation projects performed by a regional transportation agency.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.7. Construction Manager/General Contractor Method: Regional Projects on Expressways [6970 - 6974] ( Chapter 6.7 added by Stats. 2015, Ch. 413, Sec. 1. ) ## 6970. (a) This chapter provides for an alternative procurement procedure for certain transportation projects performed by a regional transportation agency. (b) The Construction Manager/General Contractor method allows the regional transportation agency 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 agency 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. 2015, Ch. 413, Sec. 1. (AB 1171) Effective January 1, 2016.)
  193. 6971.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.7. Construction Manager/General Contractor Method: Regional Projects on Expressways [6970 - 6974] ( Chapter 6.7 added by Stats. 2015, Ch. 413, Sec. 1. )

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    This section defines several terms for a Construction Manager/General Contractor transportation-project chapter and says it does not give additional transportation-planning authority to Riverside County or the Golden Gate Bridge, Highway and Transportation District under other laws.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.7. Construction Manager/General Contractor Method: Regional Projects on Expressways [6970 - 6974] ( Chapter 6.7 added by Stats. 2015, Ch. 413, Sec. 1. ) ## 6971. (a) The Legislature finds and declares that the County of Riverside should be considered a transportation planning agency for the purposes of this chapter in order to effectuate the construction of the railroad grade separations and bridge rehabilitations and replacements specified in subparagraph (C) of paragraph (4) of subdivision (b) using Construction Manager/General Contractor authority. The passage of the Road Repair and Accountability Act of 2017 (Chapter 5 of the Statutes of 2017) provides additional transportation revenue to help close the significant funding shortfalls and address the substantial backlog of infrastructure projects that are in need of repair. The geography, topography, and location of these railroad grade separations and bridge rehabilitations and replacements projects present many potential complex challenges, and the Construction Manager/General Contractor method could reduce delays and ensure that those challenges are fully understood at the outset of construction. (b) For purposes of this chapter, the following definitions apply: (1) “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, or that contracts with entities that are able to provide, appropriately licensed contracting or engineering services, or both appropriately licensed contracting and engineering services, as needed pursuant to a Construction Manager/General Contractor method contract. (2) “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. (3) “Preconstruction services” means advice during the design phase, including, but not limited to, scheduling, pricing, and phasing to assist the regional transportation agency to design a more constructible project. (4) “Project” means any of the following: (A) The construction of an expressway that is not on the state highway system. (B) The construction of the following bridges that are not on the state highway system: (i) Yerba Buena Island (YBI) West Side Bridges Seismic Retrofit Project. (ii) Yankee Jims Road Bridge Project in the County of Placer (Replacement/Rehabilitation). (C) The construction of railroad grade separations and bridge rehabilitations and replacements in the County of Riverside, as specified in Item 2660-110-0042 of Section 2.00 of the Budget Act of 2016, as amended by Chapter 7 of the Statutes of 2017. (D) The construction, alteration, repair, rehabilitation, or improvement of the Golden Gate Bridge, as defined in Section 27502 of the Streets and Highways Code. (E) A Metrolink commuter rail project. (F) Any transportation project that is not on the state highway system. (5) “Regional transportation agency” means any of the following: (A) A transportation planning agency described in Section 29532 or 29532.1 of the Government Code. (B) A county transportation commission established under Section 130050, 130050.1, or 130050.2 of the Public Utilities Code. (C) Any other local or regional transportation entity that is designated by statute as a regional transportation agency. (D) A joint exercise of powers authority established pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code, with the consent of a transportation planning agency or a county transportation commission for the jurisdiction in which the transportation project will be developed. (E) A local transportation authority created or designated pursuant to Division 12.5 (commencing with Section 131000) or Division 19 (commencing with Section 180000) of the Public Utilities Code. (F) The Santa Clara Valley Transportation Authority established pursuant to Part 12 (commencing with Section 100000) of Division 10 of the Public Utilities Code. (G) The County of Placer. (H) The County of Riverside. (I) The Golden Gate Bridge, Highway and Transportation District established pursuant to Chapter 18 (commencing with Section 27500) of Part 3 of Division 16 of the Streets and Highways Code. (c) This section does not extend any other authority to the County of Riverside or the Golden Gate Bridge, Highway and Transportation District as a transportation planning agency under any other law. (Amended by Stats. 2019, Ch. 289, Sec. 2. (AB 1475) Effective January 1, 2020.)
  194. 6972.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.7. Construction Manager/General Contractor Method: Regional Projects on Expressways [6970 - 6974] ( Chapter 6.7 added by Stats. 2015, Ch. 413, Sec. 1. )

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    A regional transportation agency may use the Construction Manager/General Contractor procurement method and may enter into such a contract if it first evaluates traditional design-bid-build and the CM/GC method and the agency board approves the strategy in a public meeting. The local streets-and-roads maintenance entity is responsible for maintaining the expressway.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.7. Construction Manager/General Contractor Method: Regional Projects on Expressways [6970 - 6974] ( Chapter 6.7 added by Stats. 2015, Ch. 413, Sec. 1. ) ## 6972. (a) A regional transportation agency may utilize the Construction Manager/General Contractor method of procurement to design and construct projects pursuant to this section. (b) A regional transportation agency may enter into a Construction Manager/General Contractor contract pursuant to this chapter after evaluation of the traditional design-bid-build method of construction and of the Construction Manager/General Contractor method and the board of the regional transportation agency affirmatively adopts the procurement strategy in a public meeting. (c) The entity responsible for the maintenance of the local streets and roads within the jurisdiction of the expressway shall be responsible for the maintenance of the expressway. (Amended by Stats. 2016, Ch. 753, Sec. 3. (AB 2374) Effective January 1, 2017.)
  195. 6973.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.7. Construction Manager/General Contractor Method: Regional Projects on Expressways [6970 - 6974] ( Chapter 6.7 added by Stats. 2015, Ch. 413, Sec. 1. )

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    Projects authorized under Section 6972 must follow the same process, procedures, and requirements as the cited sections, and “department” means the regional transportation agency.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.7. Construction Manager/General Contractor Method: Regional Projects on Expressways [6970 - 6974] ( Chapter 6.7 added by Stats. 2015, Ch. 413, Sec. 1. ) ## 6973. Construction Manager/General Contractor method projects authorized pursuant to Section 6972 shall be governed by the same process, procedures, and requirements as set forth in Section 6703, subdivision (a) of Section 6704, and Sections 6705 to 6708, inclusive, except that any reference to “department” shall mean the regional transportation agency. (Added by Stats. 2015, Ch. 413, Sec. 1. (AB 1171) Effective January 1, 2016.)
  196. 6974.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.7. Construction Manager/General Contractor Method: Regional Projects on Expressways [6970 - 6974] ( Chapter 6.7 added by Stats. 2015, Ch. 413, Sec. 1. )

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    After a project using the Construction Manager/General Contractor method is completed, the regional transportation agency must prepare a progress report for its governing body and post it on the agency’s website.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.7. Construction Manager/General Contractor Method: Regional Projects on Expressways [6970 - 6974] ( Chapter 6.7 added by Stats. 2015, Ch. 413, Sec. 1. ) ## 6974. (a) Upon completion of a project using the Construction Manager/General Contractor method, the regional transportation agency shall prepare a progress report to its governing body. The progress report shall include, but not be limited to, all of the following information: (1) A description of the project. (2) The name of the entity that was awarded the project. (3) The estimated and actual costs of the project. (4) The estimated and actual schedule for project completion. (5) A description of any written protests concerning any aspect of the solicitation, bid, proposal, or award of the project, including, but not limited to, the resolution of the protests. (6) An assessment of the prequalification process and criteria required by this chapter. (7) A description of the method used to evaluate the bid or proposal, including the weighting of each factor and an assessment of the impact of this requirement on a project. (8) A description of any challenges or unexpected problems that arose during the construction of the project and a description of the solutions that were considered and ultimately implemented to address those challenges and problems. (9) Recommendations to improve the Construction Manager/General Contractor method authorized by this chapter. (b) The progress report shall be made available on the regional transportation agency’s Internet Web site. (Added by Stats. 2015, Ch. 413, Sec. 1. (AB 1171) Effective January 1, 2016.)
  197. 6980.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.8. High Road Jobs in Transportation-Related Public Contracts and Grants Pilot Program [6980 - 6986] ( Chapter 6.8 added by Stats. 2022, Ch. 875, Sec. 1. )

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    This section names the chapter as the High Road Jobs in Transportation-Related Public Contracts and Grants Pilot Program and says it may be cited that way.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.8. High Road Jobs in Transportation-Related Public Contracts and Grants Pilot Program [6980 - 6986] ( Chapter 6.8 added by Stats. 2022, Ch. 875, Sec. 1. ) ## 6980. This chapter shall be known, and may be cited, as the High Road Jobs in Transportation-Related Public Contracts and Grants Pilot Program. (Added by Stats. 2022, Ch. 875, Sec. 1. (SB 674) Effective January 1, 2023. Repealed as of January 1, 2028, pursuant to Section 6986.)
  198. 6981.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.8. High Road Jobs in Transportation-Related Public Contracts and Grants Pilot Program [6980 - 6986] ( Chapter 6.8 added by Stats. 2022, Ch. 875, Sec. 1. )

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    This section states legislative findings and the intent to support equitable, high-quality transportation and related manufacturing and infrastructure jobs in California.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.8. High Road Jobs in Transportation-Related Public Contracts and Grants Pilot Program [6980 - 6986] ( Chapter 6.8 added by Stats. 2022, Ch. 875, Sec. 1. ) ## 6981. (a) The Legislature finds and declares all of the following: (1) In a time of uncertainty with so many Americans out of work, employment stability and equity are a primary concern. (2) Spending on green investments creates more jobs per dollar than other infrastructure investments and these jobs are accessible and well paying. Every one million dollars ($1,000,000) in spending on renewable energy creates 7.5 full-time jobs. (3) Historically vulnerable groups have been disproportionately impacted by economic downturns. For example, for every one percentage point increase in the overall unemployment rate, there is a 1.8-percent increase in African American unemployment. (4) It is essential that the state, in cooperation with the federal government, use all practical and commercially feasible means to promote the prompt and efficient development of energy sources that are renewable or that more efficiently use and conserve scarce energy resources. (5) It is in the public interest to do all of the following: (A) Prioritize reversing factors that have resulted in disproportionate health impacts and economic suffering due to the coronavirus (COVID-19) pandemic among California’s low-income communities, communities of color, and immigrant communities that have historically faced underinvestment and discriminatory policies. (B) Promote sustainable and renewable energy sources, implement measures that increase efficient energy use, advance transportation technologies that reduce the degradation of the environment, lessen the state’s dependence of fossil fuels, and protect the health, welfare, and safety of the people of this state. (C) Spend resources to avoid recreating historical patterns of injustice by allocating resources in a manner that will create a just transition to a green, regenerative economy, founded on climate, racial, and economic justice, that puts an end to extreme inequality and systemic racial injustice, and ensures all Californians have a clean and safe environment in which to live, work, and play. (D) Support a just recovery where workers from all sectors who have lost wages or jobs as a direct result of the pandemic will be prioritized for new employment opportunities that guarantee family-sustaining incomes, pensions, benefit training, retraining, and early retirement assistance. (E) Require recovery spending to include a mandate for a robust, fully funded public sector that includes significant investments in job creation and community development with a particular focus on a just transition for affected workers. (F) Expend resources in a broadly inclusive economic and democratic process that ensures robust, accessible opportunities for all Californians to determine the future of our government and economy. (G) Allocate state funds to programs, businesses, organizations, agencies, and institutions that provide the greatest opportunities for good green jobs, strong labor provisions, and climate-based solutions in a manner that is consistent with the urgency of the climate crisis and the need to make rapid and sustained reductions in greenhouse gases and statewide emissions reduction targets and recommendations from the Intergovernmental Panel on Climate Change. (H) Ensure that recovery funds reach communities most impacted by the coronavirus (COVID-19) pandemic and prioritize high road employers, as identified by the Labor and Workforce Development Agency, to enhance labor standards, workers’ rights, career pathways, and community benefits. (I) Restore frontline communities and rapidly accelerate achievements in environmental justice and climate goals, including, but not limited to, climate, environmental, and biodiversity protection and stimulating growth. (b) It is therefore the intent of the Legislature to support the creation of equitable high-quality transportation and related manufacturing and infrastructure jobs in California through the enactment and implementation of this chapter. (Added by Stats. 2022, Ch. 875, Sec. 1. (SB 674) Effective January 1, 2023. Repealed as of January 1, 2028, pursuant to Section 6986.)
  199. 6982.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.8. High Road Jobs in Transportation-Related Public Contracts and Grants Pilot Program [6980 - 6986] ( Chapter 6.8 added by Stats. 2022, Ch. 875, Sec. 1. )

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    This section defines key terms used in the chapter, including bidder, contractor, covered public contract, high road job standards, relevant public agency, subcontractor, and zero-emission transit vehicle.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.8. High Road Jobs in Transportation-Related Public Contracts and Grants Pilot Program [6980 - 6986] ( Chapter 6.8 added by Stats. 2022, Ch. 875, Sec. 1. ) ## 6982. Unless the context requires otherwise, for the purposes of this chapter, the following terms shall have the following meanings: (a) (1) “Bidder” means a private entity that applies, bids, or seeks qualification for a covered public contract. “Bidder” may be more than a single entity. (2) “Bidder” shall not include a firm, as defined in Section 4525 of the Government Code. (b) “Contractor” means a private entity that has been awarded a covered public contract. (c) (1) Except as provided in paragraph (2), “covered public contract” means, to the extent otherwise permitted by law, a public contract awarded by a relevant public agency for the acquisition of zero-emission transit vehicles or electric vehicle supply equipment valued at ten million dollars ($10,000,000) or more. (2) (A) “Covered public contract” does not mean contracts for the construction or design of infrastructure, including, but not limited to, roads, bridges, or highways. (B) “Covered public contract” does not mean a local agreement approved by the Labor and Workforce Development Agency that creates high road jobs. (C) “Covered public contract” does not mean a contract relating to architecture, landscape architecture, engineering, environmental services, land surveying, or construction project management. (D) “Covered public contract” does not include any of the following: (i) A contract awarded before January 1, 2023. (ii) A contract awarded based on a solicitation issued before January 1, 2023. (iii) A grant or contract related to a grant award announced pursuant to a call for projects that occurred before January 1, 2023. (d) “High road job standards” means a set of contract terms developed pursuant to Section 6983 that is a material part of the final contract between the bidder and the relevant public agency. Noncompliance with these commitments would violate the terms of the covered public contract. (e) “Relevant public agency” means the Department of General Services or the Department of Transportation. (f) “Subcontractor” means a private entity performing a portion of the work of the covered public contract through a subcontract or subgrant. (g) “Zero-emission transit vehicle” means a vehicle, including, but not limited to, one operated on rails or tracks, which is used for public transportation service and which carries more than 20 persons, including the driver, that produces no emissions of criteria pollutants, toxic air contaminants, and greenhouse gases when stationary or operating. (Added by Stats. 2022, Ch. 875, Sec. 1. (SB 674) Effective January 1, 2023. Repealed as of January 1, 2028, pursuant to Section 6986.)
  200. 6983.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.8. High Road Jobs in Transportation-Related Public Contracts and Grants Pilot Program [6980 - 6986] ( Chapter 6.8 added by Stats. 2022, Ch. 875, Sec. 1. )

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    Covered public contracts must include high road job standards, and contractors and subcontractors must follow the listed labor, safety, and disability-compliance requirements.

    ## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.8. High Road Jobs in Transportation-Related Public Contracts and Grants Pilot Program [6980 - 6986] ( Chapter 6.8 added by Stats. 2022, Ch. 875, Sec. 1. ) ## 6983. (a) It is the intent of the Legislature that a relevant public agency maximize economic cobenefits by conditioning eligibility to be awarded a covered public contract on a commitment to comply with the labor standards established in this section. (b) A covered public contract shall incorporate high road job standards designed to achieve the following goals: (1) Support the creation and retention of quality, nontemporary and full-time jobs that provide high wages, including benefits and access to training. (2) Support the hiring of displaced workers and individuals facing barriers to employment. (3) Encourage the development of the state’s long-term, climate-sustainable transportation and related infrastructure and manufacturing sectors. (4) Protect public health by supporting the adoption of specific protections for worker health and safety. (c) At a minimum, the high road jobs standards shall warrant that the contractor, and any subcontractors that it may use to fulfill the covered public contract, shall satisfy the following requirements: (1) Individuals performing work to fulfill the covered public contract shall not be misclassified as independent contractors. (2) The contractor and any subcontractors performing work to fulfill the covered public contract shall comply with all applicable federal, state, and local laws pertaining to paid sick leave, including any antiretaliation provisions contained in those laws. (3) The contractor and any subcontractors performing work to fulfill the covered public contract shall comply with all applicable safety and health laws and regulations, and shall comply with the employee protections set forth in Sections 6310 and 6311 of the Labor Code. (4) The contractor shall warrant that it complies, and will continue to comply, with the federal Americans with Disabilities Act of 1990 (Public Law 101-336; 42 U.S.C. Sec. 12101 et seq.) and all regulations thereunder. (d) A relevant public agency may incorporate additional high road factors, as defined in subdivision (r) of Section 14005 of the Unemployment Insurance Code, into its scoring criteria for covered public contracts, including, but not limited to, a consideration of job creation, wages, and benefits. (e) The Department of General Services, in consultation with the Labor and Workforce Development Agency and the Department of Transportation, shall develop and publish policies, procedures, and requirements applicable to covered public contracts in the State Contracting Manual for the purpose of implementing this chapter. The exemption established in Section 14615.1 of the Government Code shall apply to these policies, procedures, and requirements. (f) The programs created pursuant to this chapter shall not apply to solicitations or covered public contracts issued before January 1, 2023. (Added by Stats. 2022, Ch. 875, Sec. 1. (SB 674) Effective January 1, 2023. Repealed as of January 1, 2028, pursuant to Section 6986.)

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