After bid opening on a public works project, the prime contractor wants to substitute a different subcontractor for one listed in the bid. Under Public Contract Code §4107, the substitution is generally permitted only if:
Explanation
Public Contract Code §4107(a) permits substitution only on a listed ground — the sub refuses to execute the subcontract, becomes insolvent, fails to perform, is not properly licensed, and so on — and only after the awarding body gives the listed subcontractor written notice and at least five working days to object and request a hearing. A lower price from a replacement is bid shopping, which the Act exists to stop, and notice alone does not authorise it. The listed sub's agreement is not required when a ground exists, and a payment for stepping aside is not one of the grounds. Signing day changes nothing: listing binds from bid opening.
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