Section § 5100

Explanation

This law defines two key terms: 'Public entity' and 'Bid'. A 'Public entity' includes the state, universities, cities, counties, districts, and other government groups in California. A 'Bid' is any proposal made to these public entities for construction or improvement projects.

(a)CA Public Contract Code § 5100(a) “Public entity” means the state, Regents of the University of California, a county, city and county, city, district, public authority, public agency, and any other political subdivision or public corporation in the state.
(b)CA Public Contract Code § 5100(b) “Bid” means any proposal submitted to a public entity in competitive bidding for the construction, alteration, repair, or improvement of any structure, building, road or other improvement of any kind.

Section § 5101

Explanation

This law outlines what happens if a bidder wants to withdraw their bid due to a mistake. A bidder can only be let off the hook if the authority in charge agrees. If allowed, a detailed report must be prepared explaining the mistake, which becomes a public record. If no consent is given, the bidder can sue the public entity, but if they lose the case, they must cover the entity's legal costs, including attorney fees.

For state projects, the mistake report is public and specific to entities like the University of California or California State University, it's filed with specific bodies in those institutions.

(a)CA Public Contract Code § 5101(a) A bidder shall not be relieved of the bid unless by consent of the awarding authority nor shall any change be made in the bid because of mistake, but the bidder may bring an action against the public entity in a court of competent jurisdiction in the county in which the bids were opened for the recovery of the amount forfeited, without interest or costs. If the plaintiff fails to recover judgment, the plaintiff shall pay all costs incurred by the public entity in the suit, including a reasonable attorney’s fee to be fixed by the court.
(b)CA Public Contract Code § 5101(b) If an awarding authority for the state consents to relieve a bidder of a bid because of mistake, the authority shall prepare a report in writing to document the facts establishing the existence of each element required by Section 5103. The report shall be available for inspection as a public record. In the case of the University of California or a California State University, the report shall be filed with the regents and the trustees, respectively, and shall be available as a public record.

Section § 5102

Explanation

If you want to challenge a government contract bid in court, you need to file your complaint and notify the right public official within 90 days of when the bid was opened. If you miss this deadline, your case will be thrown out.

The complaint shall be filed, and summons served on the director of the department or the chief of the division or other head of the public entity under which the work is to be performed or an appearance made, within 90 days after the opening of the bid; otherwise, the action shall be dismissed.

Section § 5103

Explanation

This law states that a bidder must prove to the court's satisfaction that a mistake occurred with their bid. The bidder needs to show that: (a) there was an honest mistake, (b) they informed the public entity in writing within five working days after bids were opened, detailing how the mistake happened, (c) the mistake significantly altered the bid from what was intended, and (d) the mistake was about filling out the bid itself, not due to bad judgment or careless review of the site or documents.

The bidder shall establish to the satisfaction of the court that:
(a)CA Public Contract Code § 5103(a) A mistake was made.
(b)CA Public Contract Code § 5103(b) He or she gave the public entity written notice within five working days, excluding Saturdays, Sundays, and state holidays, after the opening of the bids of the mistake, specifying in the notice in detail how the mistake occurred.
(c)CA Public Contract Code § 5103(c) The mistake made the bid materially different than he or she intended it to be.
(d)CA Public Contract Code § 5103(d) The mistake was made in filling out the bid and not due to error in judgment or to carelessness in inspecting the site of the work, or in reading the plans or specifications.

Section § 5104

Explanation

Before you can bring a legal action against a public entity, the only thing you need to do is give them notice. You don't have to file any other kind of claim beforehand.

Other than the notice to the public entity, no claim is required to be filed before bringing the action.

Section § 5105

Explanation

If a bidder makes a mistake on a bid or loses their bid security, they cannot continue to bid on that same project.

A bidder who claims a mistake or who forfeits his or her bid security shall be prohibited from participating in further bidding on the project on which the mistake was claimed or security forfeited.

Section § 5106

Explanation

This law allows a public entity to offer a contract to the second lowest bidder if the initially selected bidder refuses or fails to sign the contract. If the second lowest bidder also fails to sign, the contract can be offered to the third lowest bidder. If either the second or third lowest bidder does not execute the contract when awarded, their financial security or deposit (known as 'bidder’s security') is taken away as a penalty.

If the public entity deems it is for its best interest, it may, on refusal or failure of the successful bidder to execute the contract, award it to the second lowest bidder.
If the second lowest bidder fails or refuses to execute the contract, the public entity may likewise award it to the third lowest bidder.
On the failure or refusal of the second or third lowest bidder to whom a contract is so awarded to execute it, his or her bidder’s security shall be likewise forfeited.

Section § 5107

Explanation

This law requires that any legal actions brought under this chapter be given priority over other civil cases. This means these cases should be scheduled and heard more quickly than other types of cases.

In all actions brought under the provisions of this chapter, all courts wherein such actions are or may hereafter be pending, shall give such actions preference over all other civil actions therein, in the matter of setting the same for hearing or trial, and in hearing the same, to the end that all such actions shall be quickly heard and determined.

Section § 5110

Explanation

This law deals with situations where a construction, alteration, or repair contract was awarded through competitive bidding, but the award is contested. If it's later found that only the public entity made a mistake in the bidding process, the contractor can still get paid for reasonable costs like labor and materials, excluding profit, if they believed the contract was valid, completed satisfactory work, didn't commit fraud, and the contract wasn't otherwise illegal.

However, payment can't exceed the costs stated in the contractor's bid, including approved changes, or the non-profit part of the contract amount at the time the contract becomes invalid. Importantly, this law does not interfere with any ongoing protests or legal actions regarding contract awards and bidding laws.

(a)CA Public Contract Code § 5110(a) When a project for the construction, alteration, repair, or improvement of any structure, building, or road, or other improvement of any kind is competitively bid and any intended or actual award of the contract is challenged, the contract may be entered into pending final decision of the challenge, subject to the requirements of this section. If the contract is later determined to be invalid due to a defect or defects in the competitive bidding process caused solely by the public entity, the contractor who entered into the contract with the public entity shall be entitled to be paid the reasonable cost, specifically excluding profit, of the labor, equipment, materials, and services furnished by the contractor prior to the date of the determination that the contract is invalid if all of the following conditions are met:
(1)CA Public Contract Code § 5110(a)(1) The contractor proceeded with construction, alteration, repair, or improvement based upon a good faith belief that the contract was valid.
(2)CA Public Contract Code § 5110(a)(2) The public entity has reasonably determined that the work performed is satisfactory.
(3)CA Public Contract Code § 5110(a)(3) Contractor fraud did not occur in the obtaining or performance of the contract.
(4)CA Public Contract Code § 5110(a)(4) The contract does not otherwise violate statutory or constitutional limitations.
(b)CA Public Contract Code § 5110(b) In no event shall payment to the contractor pursuant to this section exceed either of the following:
(1)CA Public Contract Code § 5110(b)(1) The contractor’s costs as included in its bid plus the cost of any approved change orders.
(2)CA Public Contract Code § 5110(b)(2) The amount of the contract less profit at the point in time the contract is determined to be invalid.
(c)CA Public Contract Code § 5110(c) Notwithstanding subdivision (a), this section shall not affect any protest and legal proceedings, whether contractual, administrative, or judicial, to challenge the award of the public works contract and enforce competitive bidding laws, nor affect any rights under Section 337.1 or 337.15 of the Code of Civil Procedure.