California 2019-2020 Regular Session

California Assembly Bill AB3290 Compare Versions

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11 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 3290Introduced by Assembly Member Eduardo Garcia(Coauthor: Assembly Member Blanca Rubio)February 21, 2020 An act to amend Section 4107 of the Public Contracts Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTAB 3290, as introduced, Eduardo Garcia. The Subletting and Subcontracting Fair Practices Act.The Subletting and Subcontracting Fair Practices Act generally prohibits a prime contractor whose bid is accepted by an awarding authority from substituting a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority may consent to the substitution of another person as a subcontractor in specified situations.This bill would provide that only a prime contractor may request and initiate the substitution of a subcontractor listed in the original bid and that these provisions do not prevent an awarding authority from pursuing contractual remedies against a prime contractor.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 4107 of the Public Contract Code is amended to read:4107. (a) A prime contractor whose bid is accepted may not:(a)(1) Substitute a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority, or its duly authorized officer, may, except as otherwise provided in Section 4107.5, consent to the substitution of another person as a subcontractor in any of the following situations:(1)(A) When the subcontractor listed in the bid, after having had a reasonable opportunity to do so, fails or refuses to execute a written contract for the scope of work specified in the subcontractors bid and at the price specified in the subcontractors bid, when that written contract, based upon the general terms, conditions, plans, and specifications for the project involved or the terms of that subcontractors written bid, is presented to the subcontractor by the prime contractor.(2)(B) When the listed subcontractor becomes insolvent or the subject of an order for relief in bankruptcy.(3)(C) When the listed subcontractor fails or refuses to perform his or her their subcontract.(4)(D) When the listed subcontractor fails or refuses to meet the bond requirements of the prime contractor as set forth in Section 4108.(5)(E) When the prime contractor demonstrates to the awarding authority, or its duly authorized officer, subject to the further provisions set forth in Section 4107.5, that the name of the subcontractor was listed as the result of an inadvertent clerical error.(6)(F) When the listed subcontractor is not licensed pursuant to the Contractors License Law.(7)(G) When the awarding authority, or its duly authorized officer, determines that the work performed by the listed subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or that the subcontractor is substantially delaying or disrupting the progress of the work.(8)(H) When the listed subcontractor is ineligible to work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code.(9)(I) When the awarding authority determines that a listed subcontractor is not a responsible contractor.Prior to approval of the prime contractors request for the substitution, the awarding authority, or its duly authorized officer, shall give notice in writing to the listed subcontractor of the prime contractors request to substitute and of the reasons for the request. The notice shall be served by certified or registered mail to the last known address of the subcontractor. The listed subcontractor who has been so notified has five working days within which to submit written objections to the substitution to the awarding authority. Failure to file these written objections constitutes the listed subcontractors consent to the substitution.If written objections are filed, the awarding authority shall give notice in writing of at least five working days to the listed subcontractor of a hearing by the awarding authority on the prime contractors request for substitution.(b)(2) Permit a subcontract to be voluntarily assigned or transferred or allow it to be performed by anyone other than the original subcontractor listed in the original bid, without the consent of the awarding authority, or its duly authorized officer.(c)(3) Other than in the performance of change orders causing changes or deviations from the original contract, sublet or subcontract any portion of the work in excess of one-half of 1 percent of the prime contractors total bid as to which his or her the prime contractors original bid did not designate a subcontractor.(b) Only a prime contractor may request and initiate a substitution pursuant to subdivision (a).(c) This section shall not prevent an awarding authority from pursuing contractual remedies against a prime contractor.
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33 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 3290Introduced by Assembly Member Eduardo Garcia(Coauthor: Assembly Member Blanca Rubio)February 21, 2020 An act to amend Section 4107 of the Public Contracts Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTAB 3290, as introduced, Eduardo Garcia. The Subletting and Subcontracting Fair Practices Act.The Subletting and Subcontracting Fair Practices Act generally prohibits a prime contractor whose bid is accepted by an awarding authority from substituting a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority may consent to the substitution of another person as a subcontractor in specified situations.This bill would provide that only a prime contractor may request and initiate the substitution of a subcontractor listed in the original bid and that these provisions do not prevent an awarding authority from pursuing contractual remedies against a prime contractor.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
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99 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
1010
1111 Assembly Bill
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1313 No. 3290
1414
1515 Introduced by Assembly Member Eduardo Garcia(Coauthor: Assembly Member Blanca Rubio)February 21, 2020
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1717 Introduced by Assembly Member Eduardo Garcia(Coauthor: Assembly Member Blanca Rubio)
1818 February 21, 2020
1919
2020 An act to amend Section 4107 of the Public Contracts Code, relating to public contracts.
2121
2222 LEGISLATIVE COUNSEL'S DIGEST
2323
2424 ## LEGISLATIVE COUNSEL'S DIGEST
2525
2626 AB 3290, as introduced, Eduardo Garcia. The Subletting and Subcontracting Fair Practices Act.
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2828 The Subletting and Subcontracting Fair Practices Act generally prohibits a prime contractor whose bid is accepted by an awarding authority from substituting a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority may consent to the substitution of another person as a subcontractor in specified situations.This bill would provide that only a prime contractor may request and initiate the substitution of a subcontractor listed in the original bid and that these provisions do not prevent an awarding authority from pursuing contractual remedies against a prime contractor.
2929
3030 The Subletting and Subcontracting Fair Practices Act generally prohibits a prime contractor whose bid is accepted by an awarding authority from substituting a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority may consent to the substitution of another person as a subcontractor in specified situations.
3131
3232 This bill would provide that only a prime contractor may request and initiate the substitution of a subcontractor listed in the original bid and that these provisions do not prevent an awarding authority from pursuing contractual remedies against a prime contractor.
3333
3434 ## Digest Key
3535
3636 ## Bill Text
3737
3838 The people of the State of California do enact as follows:SECTION 1. Section 4107 of the Public Contract Code is amended to read:4107. (a) A prime contractor whose bid is accepted may not:(a)(1) Substitute a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority, or its duly authorized officer, may, except as otherwise provided in Section 4107.5, consent to the substitution of another person as a subcontractor in any of the following situations:(1)(A) When the subcontractor listed in the bid, after having had a reasonable opportunity to do so, fails or refuses to execute a written contract for the scope of work specified in the subcontractors bid and at the price specified in the subcontractors bid, when that written contract, based upon the general terms, conditions, plans, and specifications for the project involved or the terms of that subcontractors written bid, is presented to the subcontractor by the prime contractor.(2)(B) When the listed subcontractor becomes insolvent or the subject of an order for relief in bankruptcy.(3)(C) When the listed subcontractor fails or refuses to perform his or her their subcontract.(4)(D) When the listed subcontractor fails or refuses to meet the bond requirements of the prime contractor as set forth in Section 4108.(5)(E) When the prime contractor demonstrates to the awarding authority, or its duly authorized officer, subject to the further provisions set forth in Section 4107.5, that the name of the subcontractor was listed as the result of an inadvertent clerical error.(6)(F) When the listed subcontractor is not licensed pursuant to the Contractors License Law.(7)(G) When the awarding authority, or its duly authorized officer, determines that the work performed by the listed subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or that the subcontractor is substantially delaying or disrupting the progress of the work.(8)(H) When the listed subcontractor is ineligible to work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code.(9)(I) When the awarding authority determines that a listed subcontractor is not a responsible contractor.Prior to approval of the prime contractors request for the substitution, the awarding authority, or its duly authorized officer, shall give notice in writing to the listed subcontractor of the prime contractors request to substitute and of the reasons for the request. The notice shall be served by certified or registered mail to the last known address of the subcontractor. The listed subcontractor who has been so notified has five working days within which to submit written objections to the substitution to the awarding authority. Failure to file these written objections constitutes the listed subcontractors consent to the substitution.If written objections are filed, the awarding authority shall give notice in writing of at least five working days to the listed subcontractor of a hearing by the awarding authority on the prime contractors request for substitution.(b)(2) Permit a subcontract to be voluntarily assigned or transferred or allow it to be performed by anyone other than the original subcontractor listed in the original bid, without the consent of the awarding authority, or its duly authorized officer.(c)(3) Other than in the performance of change orders causing changes or deviations from the original contract, sublet or subcontract any portion of the work in excess of one-half of 1 percent of the prime contractors total bid as to which his or her the prime contractors original bid did not designate a subcontractor.(b) Only a prime contractor may request and initiate a substitution pursuant to subdivision (a).(c) This section shall not prevent an awarding authority from pursuing contractual remedies against a prime contractor.
3939
4040 The people of the State of California do enact as follows:
4141
4242 ## The people of the State of California do enact as follows:
4343
4444 SECTION 1. Section 4107 of the Public Contract Code is amended to read:4107. (a) A prime contractor whose bid is accepted may not:(a)(1) Substitute a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority, or its duly authorized officer, may, except as otherwise provided in Section 4107.5, consent to the substitution of another person as a subcontractor in any of the following situations:(1)(A) When the subcontractor listed in the bid, after having had a reasonable opportunity to do so, fails or refuses to execute a written contract for the scope of work specified in the subcontractors bid and at the price specified in the subcontractors bid, when that written contract, based upon the general terms, conditions, plans, and specifications for the project involved or the terms of that subcontractors written bid, is presented to the subcontractor by the prime contractor.(2)(B) When the listed subcontractor becomes insolvent or the subject of an order for relief in bankruptcy.(3)(C) When the listed subcontractor fails or refuses to perform his or her their subcontract.(4)(D) When the listed subcontractor fails or refuses to meet the bond requirements of the prime contractor as set forth in Section 4108.(5)(E) When the prime contractor demonstrates to the awarding authority, or its duly authorized officer, subject to the further provisions set forth in Section 4107.5, that the name of the subcontractor was listed as the result of an inadvertent clerical error.(6)(F) When the listed subcontractor is not licensed pursuant to the Contractors License Law.(7)(G) When the awarding authority, or its duly authorized officer, determines that the work performed by the listed subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or that the subcontractor is substantially delaying or disrupting the progress of the work.(8)(H) When the listed subcontractor is ineligible to work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code.(9)(I) When the awarding authority determines that a listed subcontractor is not a responsible contractor.Prior to approval of the prime contractors request for the substitution, the awarding authority, or its duly authorized officer, shall give notice in writing to the listed subcontractor of the prime contractors request to substitute and of the reasons for the request. The notice shall be served by certified or registered mail to the last known address of the subcontractor. The listed subcontractor who has been so notified has five working days within which to submit written objections to the substitution to the awarding authority. Failure to file these written objections constitutes the listed subcontractors consent to the substitution.If written objections are filed, the awarding authority shall give notice in writing of at least five working days to the listed subcontractor of a hearing by the awarding authority on the prime contractors request for substitution.(b)(2) Permit a subcontract to be voluntarily assigned or transferred or allow it to be performed by anyone other than the original subcontractor listed in the original bid, without the consent of the awarding authority, or its duly authorized officer.(c)(3) Other than in the performance of change orders causing changes or deviations from the original contract, sublet or subcontract any portion of the work in excess of one-half of 1 percent of the prime contractors total bid as to which his or her the prime contractors original bid did not designate a subcontractor.(b) Only a prime contractor may request and initiate a substitution pursuant to subdivision (a).(c) This section shall not prevent an awarding authority from pursuing contractual remedies against a prime contractor.
4545
4646 SECTION 1. Section 4107 of the Public Contract Code is amended to read:
4747
4848 ### SECTION 1.
4949
5050 4107. (a) A prime contractor whose bid is accepted may not:(a)(1) Substitute a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority, or its duly authorized officer, may, except as otherwise provided in Section 4107.5, consent to the substitution of another person as a subcontractor in any of the following situations:(1)(A) When the subcontractor listed in the bid, after having had a reasonable opportunity to do so, fails or refuses to execute a written contract for the scope of work specified in the subcontractors bid and at the price specified in the subcontractors bid, when that written contract, based upon the general terms, conditions, plans, and specifications for the project involved or the terms of that subcontractors written bid, is presented to the subcontractor by the prime contractor.(2)(B) When the listed subcontractor becomes insolvent or the subject of an order for relief in bankruptcy.(3)(C) When the listed subcontractor fails or refuses to perform his or her their subcontract.(4)(D) When the listed subcontractor fails or refuses to meet the bond requirements of the prime contractor as set forth in Section 4108.(5)(E) When the prime contractor demonstrates to the awarding authority, or its duly authorized officer, subject to the further provisions set forth in Section 4107.5, that the name of the subcontractor was listed as the result of an inadvertent clerical error.(6)(F) When the listed subcontractor is not licensed pursuant to the Contractors License Law.(7)(G) When the awarding authority, or its duly authorized officer, determines that the work performed by the listed subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or that the subcontractor is substantially delaying or disrupting the progress of the work.(8)(H) When the listed subcontractor is ineligible to work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code.(9)(I) When the awarding authority determines that a listed subcontractor is not a responsible contractor.Prior to approval of the prime contractors request for the substitution, the awarding authority, or its duly authorized officer, shall give notice in writing to the listed subcontractor of the prime contractors request to substitute and of the reasons for the request. The notice shall be served by certified or registered mail to the last known address of the subcontractor. The listed subcontractor who has been so notified has five working days within which to submit written objections to the substitution to the awarding authority. Failure to file these written objections constitutes the listed subcontractors consent to the substitution.If written objections are filed, the awarding authority shall give notice in writing of at least five working days to the listed subcontractor of a hearing by the awarding authority on the prime contractors request for substitution.(b)(2) Permit a subcontract to be voluntarily assigned or transferred or allow it to be performed by anyone other than the original subcontractor listed in the original bid, without the consent of the awarding authority, or its duly authorized officer.(c)(3) Other than in the performance of change orders causing changes or deviations from the original contract, sublet or subcontract any portion of the work in excess of one-half of 1 percent of the prime contractors total bid as to which his or her the prime contractors original bid did not designate a subcontractor.(b) Only a prime contractor may request and initiate a substitution pursuant to subdivision (a).(c) This section shall not prevent an awarding authority from pursuing contractual remedies against a prime contractor.
5151
5252 4107. (a) A prime contractor whose bid is accepted may not:(a)(1) Substitute a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority, or its duly authorized officer, may, except as otherwise provided in Section 4107.5, consent to the substitution of another person as a subcontractor in any of the following situations:(1)(A) When the subcontractor listed in the bid, after having had a reasonable opportunity to do so, fails or refuses to execute a written contract for the scope of work specified in the subcontractors bid and at the price specified in the subcontractors bid, when that written contract, based upon the general terms, conditions, plans, and specifications for the project involved or the terms of that subcontractors written bid, is presented to the subcontractor by the prime contractor.(2)(B) When the listed subcontractor becomes insolvent or the subject of an order for relief in bankruptcy.(3)(C) When the listed subcontractor fails or refuses to perform his or her their subcontract.(4)(D) When the listed subcontractor fails or refuses to meet the bond requirements of the prime contractor as set forth in Section 4108.(5)(E) When the prime contractor demonstrates to the awarding authority, or its duly authorized officer, subject to the further provisions set forth in Section 4107.5, that the name of the subcontractor was listed as the result of an inadvertent clerical error.(6)(F) When the listed subcontractor is not licensed pursuant to the Contractors License Law.(7)(G) When the awarding authority, or its duly authorized officer, determines that the work performed by the listed subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or that the subcontractor is substantially delaying or disrupting the progress of the work.(8)(H) When the listed subcontractor is ineligible to work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code.(9)(I) When the awarding authority determines that a listed subcontractor is not a responsible contractor.Prior to approval of the prime contractors request for the substitution, the awarding authority, or its duly authorized officer, shall give notice in writing to the listed subcontractor of the prime contractors request to substitute and of the reasons for the request. The notice shall be served by certified or registered mail to the last known address of the subcontractor. The listed subcontractor who has been so notified has five working days within which to submit written objections to the substitution to the awarding authority. Failure to file these written objections constitutes the listed subcontractors consent to the substitution.If written objections are filed, the awarding authority shall give notice in writing of at least five working days to the listed subcontractor of a hearing by the awarding authority on the prime contractors request for substitution.(b)(2) Permit a subcontract to be voluntarily assigned or transferred or allow it to be performed by anyone other than the original subcontractor listed in the original bid, without the consent of the awarding authority, or its duly authorized officer.(c)(3) Other than in the performance of change orders causing changes or deviations from the original contract, sublet or subcontract any portion of the work in excess of one-half of 1 percent of the prime contractors total bid as to which his or her the prime contractors original bid did not designate a subcontractor.(b) Only a prime contractor may request and initiate a substitution pursuant to subdivision (a).(c) This section shall not prevent an awarding authority from pursuing contractual remedies against a prime contractor.
5353
5454 4107. (a) A prime contractor whose bid is accepted may not:(a)(1) Substitute a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority, or its duly authorized officer, may, except as otherwise provided in Section 4107.5, consent to the substitution of another person as a subcontractor in any of the following situations:(1)(A) When the subcontractor listed in the bid, after having had a reasonable opportunity to do so, fails or refuses to execute a written contract for the scope of work specified in the subcontractors bid and at the price specified in the subcontractors bid, when that written contract, based upon the general terms, conditions, plans, and specifications for the project involved or the terms of that subcontractors written bid, is presented to the subcontractor by the prime contractor.(2)(B) When the listed subcontractor becomes insolvent or the subject of an order for relief in bankruptcy.(3)(C) When the listed subcontractor fails or refuses to perform his or her their subcontract.(4)(D) When the listed subcontractor fails or refuses to meet the bond requirements of the prime contractor as set forth in Section 4108.(5)(E) When the prime contractor demonstrates to the awarding authority, or its duly authorized officer, subject to the further provisions set forth in Section 4107.5, that the name of the subcontractor was listed as the result of an inadvertent clerical error.(6)(F) When the listed subcontractor is not licensed pursuant to the Contractors License Law.(7)(G) When the awarding authority, or its duly authorized officer, determines that the work performed by the listed subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or that the subcontractor is substantially delaying or disrupting the progress of the work.(8)(H) When the listed subcontractor is ineligible to work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code.(9)(I) When the awarding authority determines that a listed subcontractor is not a responsible contractor.Prior to approval of the prime contractors request for the substitution, the awarding authority, or its duly authorized officer, shall give notice in writing to the listed subcontractor of the prime contractors request to substitute and of the reasons for the request. The notice shall be served by certified or registered mail to the last known address of the subcontractor. The listed subcontractor who has been so notified has five working days within which to submit written objections to the substitution to the awarding authority. Failure to file these written objections constitutes the listed subcontractors consent to the substitution.If written objections are filed, the awarding authority shall give notice in writing of at least five working days to the listed subcontractor of a hearing by the awarding authority on the prime contractors request for substitution.(b)(2) Permit a subcontract to be voluntarily assigned or transferred or allow it to be performed by anyone other than the original subcontractor listed in the original bid, without the consent of the awarding authority, or its duly authorized officer.(c)(3) Other than in the performance of change orders causing changes or deviations from the original contract, sublet or subcontract any portion of the work in excess of one-half of 1 percent of the prime contractors total bid as to which his or her the prime contractors original bid did not designate a subcontractor.(b) Only a prime contractor may request and initiate a substitution pursuant to subdivision (a).(c) This section shall not prevent an awarding authority from pursuing contractual remedies against a prime contractor.
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5656
5757
5858 4107. (a) A prime contractor whose bid is accepted may not:
5959
6060 (a)
6161
6262
6363
6464 (1) Substitute a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority, or its duly authorized officer, may, except as otherwise provided in Section 4107.5, consent to the substitution of another person as a subcontractor in any of the following situations:
6565
6666 (1)
6767
6868
6969
7070 (A) When the subcontractor listed in the bid, after having had a reasonable opportunity to do so, fails or refuses to execute a written contract for the scope of work specified in the subcontractors bid and at the price specified in the subcontractors bid, when that written contract, based upon the general terms, conditions, plans, and specifications for the project involved or the terms of that subcontractors written bid, is presented to the subcontractor by the prime contractor.
7171
7272 (2)
7373
7474
7575
7676 (B) When the listed subcontractor becomes insolvent or the subject of an order for relief in bankruptcy.
7777
7878 (3)
7979
8080
8181
8282 (C) When the listed subcontractor fails or refuses to perform his or her their subcontract.
8383
8484 (4)
8585
8686
8787
8888 (D) When the listed subcontractor fails or refuses to meet the bond requirements of the prime contractor as set forth in Section 4108.
8989
9090 (5)
9191
9292
9393
9494 (E) When the prime contractor demonstrates to the awarding authority, or its duly authorized officer, subject to the further provisions set forth in Section 4107.5, that the name of the subcontractor was listed as the result of an inadvertent clerical error.
9595
9696 (6)
9797
9898
9999
100100 (F) When the listed subcontractor is not licensed pursuant to the Contractors License Law.
101101
102102 (7)
103103
104104
105105
106106 (G) When the awarding authority, or its duly authorized officer, determines that the work performed by the listed subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or that the subcontractor is substantially delaying or disrupting the progress of the work.
107107
108108 (8)
109109
110110
111111
112112 (H) When the listed subcontractor is ineligible to work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code.
113113
114114 (9)
115115
116116
117117
118118 (I) When the awarding authority determines that a listed subcontractor is not a responsible contractor.
119119
120120 Prior to approval of the prime contractors request for the substitution, the awarding authority, or its duly authorized officer, shall give notice in writing to the listed subcontractor of the prime contractors request to substitute and of the reasons for the request. The notice shall be served by certified or registered mail to the last known address of the subcontractor. The listed subcontractor who has been so notified has five working days within which to submit written objections to the substitution to the awarding authority. Failure to file these written objections constitutes the listed subcontractors consent to the substitution.
121121
122122 If written objections are filed, the awarding authority shall give notice in writing of at least five working days to the listed subcontractor of a hearing by the awarding authority on the prime contractors request for substitution.
123123
124124 (b)
125125
126126
127127
128128 (2) Permit a subcontract to be voluntarily assigned or transferred or allow it to be performed by anyone other than the original subcontractor listed in the original bid, without the consent of the awarding authority, or its duly authorized officer.
129129
130130 (c)
131131
132132
133133
134134 (3) Other than in the performance of change orders causing changes or deviations from the original contract, sublet or subcontract any portion of the work in excess of one-half of 1 percent of the prime contractors total bid as to which his or her the prime contractors original bid did not designate a subcontractor.
135135
136136 (b) Only a prime contractor may request and initiate a substitution pursuant to subdivision (a).
137137
138138 (c) This section shall not prevent an awarding authority from pursuing contractual remedies against a prime contractor.