Don't get caught off-guard. Beginning July 1, 2014, amendments to the California Subletting and Subcontracting Fair Practices Act go into effect. Last September, the California State Legislature passed AB 44, which amends Public Contract Code section 4104, and requires that prime contractors bidding on public works or improvement set forth in their bid the California Contractors State License Board number of all subcontractors listed in their bid. The license number must be included for all subcontractors who will be performing work in excess of 0.5% of the prime contractor’s total bid or, in the case of bids for the construction of streets, highways, or bridges, in excess of 0.5% of the prime contractor’s total bid or $10,000, whichever is greater.
As a palliative measure, AB 44 provides that “[a]n inadvertent error in listing the California contractor license number . . . shall not be grounds for filing a bid protest or grounds for considering the bid nonresponsive” as long as the correct information is submitted within 24 hours after the bid opening.
If your agency still has not updated your public works or improvement bidding documents, it is not too late to revise your bid documents before the July 1, 2014 deadline. KMTG attorneys are available to assist in the review and revision of your public works and improvement bidding packages.
Questions
If you have any questions concerning this Legal Alert, please contact the following from our office, or the attorney with whom you normally consult.
Constantine C. Baranoff, Garret D. Murai or Maggie W. Stern | 916.321.4500