Presenters:
John Finney, Contract Services Manager
Tracy Soth, Senior Contract Services Officer

California Uniform Public
Construction Cost Accounting Act
(CUPCCAA)
Public Contract Code, Sections 22000 – 22050
These sections are known as the “Uniform
Public Construction Cost Accounting Act ”

California Uniform Public
Construction Cost Accounting Act
(CUPCCAA)
It allows local agencies to informally perform public works projects of up to $175,000, if the agencies elect to follow the cost accounting procedures set forth in the Cost Accounting
Policies and Procedures Manual of the California Uniform
Construction Cost Accounting Commission.

California Uniform Public
Construction Cost Accounting Act
(CUPCCAA)
• Public projects of $45,000 or less may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order.
• Public projects between $45,000 and $175,000 may be let to contract by informal procedures as set forth in the Act.
• Public projects of more than $175,000 shall, except as otherwise provided in the Act, be let to contract by formal bidding procedure.

• Why “public works”? Provides local public agencies an alternative to burdensome and time-consuming formal competitive bidding process on public projects
• Public Contract Code – erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind
• Labor Code – more extensive, includes above, plus demolition, installation, laying of carpet, and assembly and disassembly of modular office systems… paid for in whole or in part out of public funds; includes maintenance
• Bidding/Contracting Mechanism – Use Public Contract Code
• Prevailing Wages – Use Labor Code

– Routine, recurring and usual work for the preservation or protection of any publicly owned or publicly operated facility
– Minor repainting
– Resurfacing of streets & highways at less than 1”
– Landscape maintenance

• The governing board must elect by resolution to become subject to the California Uniform Public
Construction Cost Accounting Act.
• The agency must notify the State Controller in writing of its election to become subject to the uniform cost accounting procedures and forward a copy of the resolution.

• The agency must adopt a policy outlining informal bidding procedures.
• Once an agency has opted in, it must conform to the uniform cost accounting procedures until the district opts out of the Act by adopting a resolution opting out and forwarding said resolution to the State
Controller.

• When estimating for a project up to $45,000; keep in mind that all standard public contract and labor code requirements must be met including but not limited to the requirement to call for prevailing wages, payment bond for projects in excess of $25,000, fingerprinting, certifications, etc.
• Change orders are only permitted to a maximum contract total of $45,000.
– Note: Any non-emergency work done by force account in excess of
$45,000 is a violation of the Act.
• Best practices would include ensuring that you are getting the required scope of work for the best price; therefore, obtaining multiple quotes is desirable.
• When internal forces are also bidding on the work; the project cost must include labor, materials, supplies, equipment, and overhead.

Projects between $45,000 and $175,000. Project must be let by competitive bid utilizing informal, streamlined procedures utilizing one of two options:
– Advertisement by bidders list: All contractors on the list for the category of work being bid as specified in Section 22034
– Advertisement through trade journals and exchanges: All construction trade journals specified in Section 22036

– Advertisement by bidders list: All contractors on the list for the category of work being bid as specified in Section 22034 (a).
– There is NO exemption to maintaining a list of bidders.
To be in compliance with the Act, an Agency must follow PCC 22034 which outlines the requirements for the qualified Bidder’s List
– If an Agency chooses the list, they must maintain the list in accordance with the Manual which includes updating the bidders list at minimum annually by license type, and qualifications.

PCC 22034 - All contractors on the list for the category of work being bid OR all construction trade journals specified in Section 22036, or both, shall be mailed* a notice inviting informal bids unless the product or service is proprietary.
– The notice shall be sent at least 10 days prior to bid opening.
– All standard public contract and labor code requirements must be met including but not limited to prevailing wages, payment bond for projects in excess of $25,000, fingerprinting, escrow agreement, DVBE, labor compliance, etc.
– The authority to award informal contracts may be delegated.
– Contracts may be awarded up to $175,000. When all bids received are above $175,000, a contract may be awarded up to $187,500.

• Formal bids are let using the standard bid process as outlined in Public
Contract Code (for Counties – 20120)
• Notice to Contractors – Changes from 10-day to 15-day notice per
Government code 6062
• The notice shall be published pursuant to government code 6066 – changes from Bidders List to Trade Journals or a bidders list and trade journals.
• Governing Board must first approve plans and specifications, and must approve final contract award.

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In cases of emergency when repair or replacements are necessary
• The governing board may proceed at once to replace or repair any public facility without adopting plans, specifications, strain sheets, or working details, or giving notice for bids to let contracts.
• The governing board may direct the work to be done by day labor, by contractor, or by a combination of the two.

In cases of emergency when repair or replacements are necessary
• The governing board, By a four-fifths vote may:
– repair or replace a public facility
– take any directly related and immediate action required by that emergency
– procure the necessary equipment, services, and supplies for those purposes

In cases of emergency when repair or replacements are necessary
• The authority to enter emergency contracts may be delegated by a four-fifths vote of the governing board
– as long as the designee takes the action to the governing board within 7 days
– or at its next regularly scheduled meeting which shall be no more than 14 days after the action was taken
– The designee must report at each following meeting until the action is terminated (contract completed)
 Code is in conflict with boards that meet on a monthly basis.

• Increased force account limits
• Informal bidding procedures for projects within
$45,000 -$175,000
• Reduce number of formal bids
• Expedited contracting for small projects

Type of Project
Materials and Supplies
Summary Table of Public Works Contracting Methods and Authority
Project Cost Contracting Options Awarding Authority
<=$3,500 Purchase Order (no bids required) Purchasing Agent
New Construction
<=$6,500
<=$45,000
>$45,000 and <=$175,000
>$175,000
>=$2,500,000
Roadwork (SacDOT only)
Maintenance, Repair, Remodeling, Minor
Alterations (including Roadways and Bridges)
<30% of force account work as of January 1
$ Limits Above
<=$3,000,000 adjusted annually since 1998 to reflect % change in California CPI
(now +/-$4,464,000)
<=$25,000
Roadways/Bridges – Maintenance and Repair
(SacDOT only)
<=$50,000
Emergency
>$45,000
$ Limits Above
Any $ limit
Purchase Order (no bids required)
Formal Bid
Informal Bid (CUPCCAA)
Force Account
Purchase Order (CUPCCAA)
Negotiated Contract
Formal Bid
Informal Bid (CUPCCAA)
Formal Bid
Formal Bid
Design-Build
Force Account subject to prior notice
Same Options as Above
JOC
Negotiated Contract
48-Hour Informal Bid
Force Account subject to prior notice
Same Options as Above
Emergency Contract
Purchasing Agent
Board*
Chief Deputy CE / Designee
Performed by County Staff
Purchasing Agent
Varies
Board*
Chief Deputy CE / Designee
Board*
Board*
Road Commissioner / Board
Same as Above
Board for Initial Award; Tasks:
<=$50,000 Director, DGS <=$100,000 Chief
Deputy CE, ISA
>$100,000 CEO / designee
Chief Deputy CE / Designee
Purchasing Agent
Chief Deputy CE / Designee
Purchasing Agent
Road Commissioner / Board
Same as Above
Board**
Statute
PCC 20131
SCC 2.56
PCC 20131
SCC 2.56
PCC 22000 et seq
SCC 2.56, 2.61.058
PCC 22000 et seq
SCC 2.61.058, 2.155
PCC 22000 et seq
PCC 22000 et seq
PCC 20133
PCC 20395, 22031
Same as Above
PCC 20128.5
RSO# 2013-0296
PCC 20394
SCC 2.61.053, 2.61.054
PCC 20394.5
SCC 2.61.055
PCC 20395, 22031
PCC 22035, 22050
SCC 2.61.056

1. Contracting Method
2. Plans and
Specifications
3. Risk Assessment and
Insurance
4. Payment and
Performance Bonds
5. Prevailing Wages
6. Notice to Contractors
7. Bid Form and Bidding
8. Protests/Requests for
Relief/Substitutions
9. Award of Contract
10. Contract
Administration and
Management
11. Change Orders
12. Compensation
13. Project Completion
14. Records Retention

• Payment bonds are required for projects exceeding $25,000 (Civil
Code Sections 9550, 9552).
• Performance bonds are required for construction projects (PCC
Section 20129(b)).
• Contracting via Purchase Order does not cancel the requirement for payment and performance bonds. (Note: stop payment notices apply to purchase orders, so payment bonds are needed with purchase orders.)
• Performance bonds are the leverage to get work completed if the contractor defaults and to get warranty work done.

• Prevailing wages are required for all public works projects exceeding $1,000…
• With our (Sac County) Labor Compliance Program, the threshold increases to $15,000 for maintenance and repair projects and to $25,000 for construction projects.
• For federally funded projects, notwithstanding our LCP, the threshold is $2,000.
• How to determine if prevailing wages are required?

IMMEDIATE CHANGES
• Duty to notify DIR when awarding a contract for a public works project, using the online PWC-100 form .
– This requirement, found in Labor Code Section
1773.3, now applies to all public works projects.
Previously it applied to projects costing greater than $30,000.

IMMEDIATE CHANGES
• Elimination of the obligation to pay DIR for compliance monitoring on state bond-funded projects and other projects that required use of DIR's Compliance
Monitoring Unit (CMU).
– DIR will continue to monitor compliance on these projects but will not charge awarding bodies for any services provided on or after June 20, 2014 [the effective date of SB 854].
– The alternative of using a DIR-approved Labor Compliance
Program (LCP) or a project labor agreement in lieu of the CMU on one of these projects has also been eliminated. However, for ongoing projects that were using one of the alternatives, monitoring should continue until the project is completed.

PHASED-IN CHANGES
I. Public Works Contractor Registration Program o All contractors and subcontractors who bid or work on a public works project must register and pay an annual fee
to DIR.
o July 1, 2014: Registration program became effective and first contractors registered. Initial registrations will be valid through June
30, 2015. o March 1, 2015: No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with DIR.
o April 1, 2015: No contractor or subcontractor may work on a public works project unless registered with DIR.

PHASED-IN CHANGES
I. Public Works Contractor Registration Program
• Once the registration requirement becomes mandatory
(March 1, 2015 for bids and April 1, 2015 for work), an awarding body may not accept a bid or enter into a contract for public work with an unregistered contractor.
o DIR maintains an up-to-date listing of registered contractors .
o There are exceptions to the registration requirement for bidders in circumstances where a CSLB license would not be required at the time of bidding.
o Additional exceptions and protections are included in the registration laws to limit bid challenges, allow some violations to be cured through payment of penalty fees, and allow unregistered contractors to be replaced with registered ones.

PHASED-IN CHANGES
II. NOTICE REQUIREMENTS
• January 1, 2015: The call for bids and contract documents must include the following information:
– No contractor or subcontractor may be listed on a bid proposal for a public works project (submitted on or after March 1, 2015) unless registered with the
Department of Industrial Relations pursuant to Labor Code section 1725.5
[with limited exceptions from this requirement for bid purposes only under
Labor Code section 1771.1(a)].
– No contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section
1725.5.
– This project is subject to compliance monitoring and enforcement by the
Department of Industrial Relations.

PHASED-IN CHANGES
III. FURNISHING OF ELECTRONIC CERTIFIED PAYROLL RECORDS TO LABOR
COMMISSIONER
• All contractors and subcontractors must furnish electronic certified payroll records directly to the Labor Commissioner (aka Division of Labor
Standards Enforcement). The phase-in timetable for this requirement is as follows:
June 20, 2014 [immediate]: Any project that was being monitored by the
CMU/Labor Commissioner prior to the adoption of SB 854 will continue to be monitored by the Labor Commissioner afterward; and the contractors on those projects must continue to furnish certified payroll records to the Labor
Commissioner until the project is complete.
April 1, 2015: For all new projects awarded on or after this date, the contractors and subcontractors must furnish electronic certified payroll records to the Labor Commissioner.
Anytime: For projects besides those listed above, the Labor Commissioner may at any time require the contractors and subcontractors to furnish electronic certified payroll records. The Labor Commissioner anticipates requiring this for green energy school projects that receive Proposition 39 funding.

PHASED-IN CHANGES
III. FURNISHING OF ELECTRONIC CERTIFIED PAYROLL RECORDS TO LABOR
COMMISSIONER
• All contractors and subcontractors must furnish electronic certified payroll records directly to the Labor Commissioner (aka Division of Labor
Standards Enforcement). The phase-in timetable for this requirement is as follows (continued):
January 1, 2016: The requirement to furnish electronic certified payroll records to the Labor Commissioner will apply to all public works projects, whether new or ongoing.
Exceptions: The Labor Commissioner may (but is not required to) excuse contractors and subcontractors from furnishing electronic certified payroll records to the Labor Commissioner on a project that is under the jurisdiction of one of the four legacy DIR-approved labor compliance programs (Caltrans, City of Los Angeles, Los Angeles Unified School District, and County of Sacramento) or that is covered by a qualifying project labor agreement.
• These new requirements will apply to all public works that are subject to the prevailing wage requirements of the Labor Code, without regard to funding source.

Contact information:
• John Finney, Contract Services Manager
916-876-6368 finneyj@saccounty.net
• Tracy Soth, Senior Contract Services Officer
916-876-6285 sotht@saccounty.net

Contact information:
• Public Contract Code www.leginfo.ca.gov/cgi-bin/calawquery?codesection=pcc
• California State Controller http://www.sco.ca.gov/ard_cuccac.html
• Local Government Policies – Lilian Apgar (State Controllers office) 3301 C Street, Suite 740 Sacramento lapgar@sco.ca.gov