SECTIONS 20530-20541 - California Statutes

PUBLIC CONTRACT CODE

SECTION 20530-20541

20530. The provisions of this article shall apply to contracts by a
joint highway district, as provided in the Joint Highway District
Act, Part 1 (commencing with Section 25000) of Division 16 of the
Streets and Highways Code.

20531. All construction work shall be done by contract awarded to
the lowest responsible bidder after advertising for bids in a
newspaper of general circulation published and circulated within the
district which has been designated by the secretary or the board of
directors for that purpose. The advertising shall be done by means of
two publications of the notice inviting bids the first of which
shall be not less than 10 days prior to the time fixed for receiving
the bids.

20532. 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:
(a) Cash.
(b) A cashier's check made payable to the district.
(c) A certified check made payable to the district.
(d) A bidder's bond executed by an admitted surety insurer, made
payable to the district.
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 district beyond
60 days from the time the award is made.

20533. All bids shall be delivered to the secretary of the board of
directors not later than the hour fixed for receiving bids and shall
thereafter be publicly opened by the secretary in the presence of
the board of directors assembled in public session.

20534. The board of directors shall award the contract to the
lowest responsible bidder. However, before awarding the contract the
board may:
(a) Reject all bids should it deem this necessary for the good of
the district.
(b) Reject the bid of any bidder who has been delinquent or
unfaithful in any former contract with either the district, or any
county composing the district, or with the state.
(c) Reject the bid of any bidder who is unable to satisfy the
board of directors of his ability, financially or otherwise, to
perform the contract for the proposed work.

20535. If all bids have been rejected because it appears that they
are too high and that the work can be done more cheaply by day labor,
the board may, in lieu of readvertising for bids, order the work
done by day labor under the supervision of the district engineer.

20536. The bidder to whom any contract is awarded shall, within 20
days after the date of the award by the board of directors, execute a
contract to perform the work. The contract shall be in a form
approved by an attorney employed by the board of directors.

20537. Before the contract is executed, the person to whom it is
awarded shall execute bonds for the faithful performance of the
contract and for the payment of all claims for labor and material
thereunder in the manner provided by law and in the form approved by
an attorney employed by the board of directors.

20538. All of the bonds shall be executed by the bidder and by a
corporate surety duly authorized to do business as such under the
laws of the State of California. Each bond shall be in an amount not
less than 50 percent of the aggregate contract price. The contract
shall not be executed on behalf of the district until all the
contract bonds are approved by the president of the board of
directors and the district engineer.

20539. The president or vice president and secretary or assistant
secretary shall sign and attest all construction contracts on behalf
of the district.

20540. All construction contracts shall provide that a maximum of
eight hours shall constitute a day's labor and that three dollars
($3) shall be the minimum amount paid for a day's labor performed
upon any construction work covered by the contract.

20541. If any bidder to whom a contract is awarded fails to enter
into the contract and execute the required bonds, the board of
directors shall declare the check accompanying the bid of such bidder
to be forfeited. Upon cashing the check the proceeds shall be placed
to the credit of the construction fund of the district. The board of
directors may thereupon award the contract to the next lowest
responsible and acceptable bidder, or may call for new bids.