Public WorksQuestion 620 of 690
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:
a.The prime gives the awarding body written notice and the new sub bids lower
b.The listed sub agrees in writing to be removed and accepts a kill fee
c.The substitution occurs before the contract is signed, with no consent required
d.One of the statutory grounds applies (e.g., listed sub fails to execute the subcontract, refuses to perform, is unlicensed, becomes insolvent) AND the listed sub receives notice and an opportunity to object
Explanation
Public Contract Code §4107 lists specific grounds for substituting a listed subcontractor (refusal to execute the subcontract, bankruptcy, failure to be properly licensed, failure to perform, etc.) and requires the awarding body to give the listed sub written notice of the proposed substitution and at least 5 working days to object and request a hearing. Bid shopping for a lower price is not a permissible ground. The 'kill fee' option misstates the rule; consent of the listed sub is not required if statutory grounds exist, but due process is. Pre-execution substitution without consent or grounds is also prohibited.
Law Reference: Public Contract Code §4107Practice all 690 questions free — no signup required.
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