SECTIONS 20480-20497 - California Statutes

PUBLIC CONTRACT CODE

SECTION 20480-20497

20480. The provisions of this article shall apply to contracts by
cities, cities and counties, or counties, or other entities, public
corporations, or agencies authorized to operate under the Municipal
Improvement Act of 1913, as provided for in Division 12 (commencing
with Section 10000) of the Streets and Highways Code.

20481. At any time after the preliminary approval of the report
provided for in Section 10300 of the Streets and Highways Code, the
legislative body may let the contract or contracts for all or any
part of the improvement and authorize such acts and proceedings as
are necessary to acquire works or appliances already installed, or
other property, as authorized by this division.

20482. Each contract shall be let to the lowest responsible bidder
after notice inviting sealed proposals is published pursuant to
Section 6066 of the Government Code in a newspaper published in the
municipality, and designated by the legislative body for that
purpose, or if there is no such newspaper by such posting as the
legislative body may provide. The time fixed for the opening of the
bids shall not be less than 14 days after the first publication or
posting of the notice.

20483. (a) All bids for construction work shall be presented under
sealed cover and shall be accompanied by one of the following forms
of bidder's security which amounts to 10 percent of the bid:
(1) Cash.
(2) A cashier's check made payable to the legislative body.
(3) A certified check made payable to the legislative body.
(4) A bidder's bond executed by an admitted surety insurer, made
payable to the legislative body.
The amount so posted shall be forfeited to the municipality if the
bidder does not, within 15 days after written notice that the
contract has been awarded to the bidder, enter into a contract with
the municipality for the work. Upon an award to the lowest bidder,
the security of an unsuccessful bidder shall be returned in a
reasonable period of time, but in no event shall that security be
held by the legislative body beyond 60 days from the time the award
is made.
(b) The faithful performance of the contract shall be secured by
an undertaking in that penal sum as the legislative body requires,
but not less than 25 percent of the contract price, satisfactory to
the legislative body. When the proceedings include the acquisition or
construction of works, appliances, or improvements to be owned,
managed or controlled by a public agency other than the municipality
making the acquisitions or ordering the work done, the legislative
body of the municipality may require that the undertaking also inure
to the benefit of the public agency to the extent of its interest in
the entire project. The contractor shall also furnish a labor and
material bond as required by law in a sum not less than 50 percent of
the contract price.

20484. Notice of award of the contract shall be published by the
clerk of the legislative body once in the newspaper in which the
notice of improvement was published.

20485. The owners of three-fourths of the area of lands assessed or
liable to be assessed, or their agents (who shall make oath that
they are such owners or agents), shall not be required to present
sealed proposals or bids, but may, within 10 days after the
publication of the notice of the award of the contract, elect to take
the work and enter into a written contract to do the whole work at
prices not exceeding the prices specified in the bid of the bidder to
whom the contract was awarded, and all work done under such contract
shall be subject to such regulations as may be prescribed by the
legislative body.

20486. If the owners fail to elect to take the work and to enter
into a written contract therefor within 10 days, or to commence the
work within 15 days after the date of the written contract, and to
prosecute the same with diligence to completion, a contract shall be
entered into with the original bidder to whom the contract was
awarded at the prices specified in his bid.

20487. If, in the opinion of the legislative body, the public
interest will not be served by allowing the property owners to take a
contract, it may so provide in the resolution of intention. In that
event, no notice of award of contract need be published pursuant to
Section 20484.

20488. The contract shall provide that the work shall be done
strictly in accordance with the plans and specifications contained in
the report provided for in Sections 10200, 10201, 10202, 10203,
10204, and 10300 of the Streets and Highways Code. The work shall be
done under the supervision of the board officer, or person by whom
the report was made, and no work or portion of the work shall be paid
for until it is approved for payment by that board officer, or
person, but this shall not prevent approval of and payment for
completed portions of the work as it progresses. Payment made for
completed portions of the work shall not constitute final acceptance
of these portions or of the completed project.

20489. The provisions of the Improvement Act of 1911 relating to
liquidated damages are incorporated in this division.

20490. If the contractor abandons the work, or fails to proceed
with the work as rapidly as required by his contract, the legislative
body may declare him in default and relet the work in the manner set
forth in this chapter for letting the original contract, or it may
complete the work by direct purchase of labor and materials, and
retain out of any funds due or to become due the contractor the
amount of the cost of the work and any expense incidental to
reletting the contract or performing the work, and also hold the
contractor and his sureties responsible for such cost and expense,
and for any damages resulting from the abandonment or failure upon
his bond.
Notice of the declaration of default shall be given by the clerk
of the legislative body by personal service or by mail. Upon receipt
of such notice, the contractor shall forthwith quit the work, and
shall receive no payment for any work performed thereafter unless
ordered to resume the work by the legislative body.

20491. At any time within 10 days after the award of any contract
pursuant to this chapter, or if no bids are received, at any time
within 10 days after the time fixed for the opening of bids by
resolution adopted by a vote of two-thirds of all its members, the
legislative body may order that the proposed contract be not made,
and that the municipality itself execute the work in accordance with
the plans and specifications adopted for the work.

20492. If the work is abandoned by the city before work is actually
started or before any materials, supplies or equipment have been
furnished or used, the incidental expenses incurred previous to such
abandonment, unless provision has otherwise been made therefor, shall
be paid out of the city treasury, but such expense for which the
city is liable and which shall have been paid by it may be charged as
incidental expenses against the district benefited in any new
proceeding had or taken for any work which includes substantially the
same work as that which was included in the abandoned proceedings.

20496. The provisions of Title 15 (commencing with Section 3082),
Part 4, Division 3, of the Civil Code are hereby expressly made
applicable to the construction of works and improvements under this
article.

20496. The provisions of Title 3 (commencing with Section 9000) of
Part 6 of Division 4 of the Civil Code are hereby expressly made
applicable to the construction of works and improvements under this
article.

20497. If in the opinion of the legislative body the public
interest will not be served by allowing the property owners to take
the contract it may so provide in the resolution of intention.