Bidding, Mistaken Bids, Withdrawal of Bids, Bid Bond Claims and Bid Disputes Archives

New Requirement that All Contractors and Subcontractors Bidding on Public Works Projects Be Register with the Department of Industrial Relations

As a result of the passage of Senate Bill (SB) 854, significant changes were made to Cal. Labor Code §1771.1 and §1725.5. All licensed contracts who work on or intend to work on public works projects must be registered with the California Department of Industrial Relations. Beginning March 1, 2015, all contractors were required to register with Department of Industrial Relations in order to bid on public works projects or be listed in a bid proposal. As of April 1, 2015, only contractors who have registered with the Department of Industrial Relations will be eligible to be awarded a public works contract, even if the project did not go out to bid.

Are you Prequalified to be Awarded Small Public Projects not Subject to Formal Bidding Requirements?

As contractors know, public works projects must be awarded via a public, competitive bidding process (excepting those where expenditures will be $5,000 or less). But in 1983 California legislators passed the California Uniform Public Construction Cost Accounting Act ("Act"), allowing some smaller projects to bypass the formal bidding process and be awarded either by negotiated contract, or via an informal bidding process. The Act also allows some particularly small projects to be self-performed by public agency forces.

Low bidder denied project after listed DVBE subcontractor found lacking a "commercially useful function"

General contractor C.C. Meyers, Inc. was awarded a Caltrans project to improve a highway in Glendale. Meyers was given a credit in its bid for listing a Disabled Veteran Business Enterprise ("DVBE"), Sam's Equipment and Supplies ("Sam's"). Sam's was to furnish concrete base material. Without the credit, Meyers would not have been the low bidder.

If proposed law passes successful bid protestors may be able to recovery attorney's fees

Today contractors who have bid on a public works project and are protesting its award to another bidder may not recover their attorney's fees even if they prevail in establishing a wrongful award.

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