Public WorksQuestion 1595 of 1605

Under California's Subletting and Subcontracting Fair Practices Act, a prime bidder on public works must list in its bid each subcontractor who will perform work exceeding a threshold percentage. The main purpose is to prevent:

a.Payment of prevailing wages
b.The use of any subcontractors
c.'Bid shopping' and 'bid peddling' after the contract is awarded
d.DIR registration

Explanation

The Subletting and Subcontracting Fair Practices Act (Public Contract Code §4100 et seq.) requires listing subcontractors performing more than one-half of one percent of the bid, to curb bid shopping (the prime pressuring listed subs for lower prices after award) and bid peddling. Substituting a listed sub requires following statutory procedures.

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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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