Public WorksQuestion 1595 of 1632

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 to the listed subcontractors
b.The prime from self-performing any part of the work
c.Bid shopping and bid peddling after the award
d.Unlicensed subcontractors from working on public jobs

Explanation

The Subletting and Subcontracting Fair Practices Act makes the prime name, in its bid, every subcontractor whose work exceeds one-half of one percent of the total bid, so the prime cannot shop those prices down after award or let rivals peddle lower ones in. Prevailing wage duties come from Labor Code §1771 and apply whether or not a sub is listed. Self-performance is not restricted by the Act; listing is required only for work actually subcontracted. Licensing is policed by the CSLB and by §4104's licence-number requirement, which is a detail of listing rather than its purpose.

Law Reference: Public Contract Code §4104; §4107

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