Amended IN Assembly March 19, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 971Introduced by Assembly Member SalasFebruary 21, 2019 An act to amend Section 10226 of, and to add Section 10111.1 to, the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTAB 971, as amended, Salas. Public contracts: General Services. contractor evaluations: incentive payments.Existing law, the State Contract Act, governs state contracts for public works projects and generally requires that a department, defined as the Department of General Services and other specified state government entities, award a contract to the lowest responsible bidder. The act authorizes a contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System to provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time. The act requires this provision to be included in the project specifications and to clearly set forth the basis for the payment. Existing law establishes various procedures for the procurement of state goods and services, including consulting services and personal services. Existing law requires each state agency to conduct a postevaluation, by completing the postevaluation form, of each consulting services contract totaling $5,000 or more that it executes. Existing law requires the state agency to evaluate the performance of the contractor in doing the work or delivering the services for which the contract was awarded, including evaluating any cost overruns or delayed completions.This bill would expand the authorization to provide payment for extra compensation to the contractor, as a bonus for completion prior to the specified time, to all projects and would authorize payment for extra compensation for completion within the contract price. The bill would require under the State Contract Act that a department, as defined, conduct a postevaluation similar to the one described above for each contract awarded under the act, and would require the Department of General Services to post on its internet website a list of contractors whose performance was found to be unsatisfactory and a list of contractors whose performance was satisfactory based on those postevaluations.Existing law creates within state government, in the Government Operations Agency, the Department of General Services to provide centralized services, including, but not limited to, planning, acquisition, construction, and maintenance of state buildings and property; purchasing; printing; architectural services; administrative hearings; government claims; and accounting services. This bill would state that it is the intent of the Legislature to enact legislation related to the entities that contract with the Department of General Services.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 10111.1 is added to the Public Contract Code, to read:10111.1. (a) The department shall conduct a postevaluation, by completing the postevaluation form, of each contract for a public work totaling five thousand dollars ($5,000) or more that it executes.(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall report on all of the following:(1) Whether the contracted work was completed as specified in the contract, and reasons for and amount of any cost overruns or delayed completions.(2) Whether the contracted work met the quality standards specified in the contract.(3) Whether the contractor fulfilled all the requirements of the contract and if not, in what ways the contractor did not fulfill the contract.(4) Factors outside the control of the contractor that caused difficulties in contractor performance.(5) Other information the department may require.(c) If the contractors performance was judged unsatisfactory on any of the factors specified in subdivision (b) and was not mitigated by circumstances specified in paragraph (4) of subdivision (b), the evaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).(d) The postevaluation shall be prepared within 60 days of the completion of the contract.(e) Postevaluations shall remain on file at the offices of the awarding department for a period of 36 months following contract completion. If the contractor did not satisfactorily perform the work specified in the contract, the department conducting the evaluation shall place one copy of the evaluation form in the departments contract file and, if the department is not the Department of General Services, send one copy of the form to the Department of General Services within five working days of the completion of the evaluation.(f) Upon filing an unsatisfactory evaluation or sending a copy to the Department of General Services, the department shall notify and send a copy of the evaluation to the contractor within 15 days. (g) The Department of General Services shall post on its internet website a list of contractors whose performance was found to be unsatisfactory and a list of contractors whose performance was satisfactory. The list of contractors with unsatisfactory performance shall provide the following for each contractor:(1) Whether the contractor delayed completion of a contract and by how many days the contract was delayed.(2) Whether the costs overran the contract price and by how much.SEC. 2. Section 10226 of the Public Contract Code is amended to read:10226. Every contract shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time, time or for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.SECTION 1.It is the intent of the Legislature to enact legislation related to the entities that contract with the Department of General Services.
Amended IN Assembly March 19, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 971Introduced by Assembly Member SalasFebruary 21, 2019 An act to amend Section 10226 of, and to add Section 10111.1 to, the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTAB 971, as amended, Salas. Public contracts: General Services. contractor evaluations: incentive payments.Existing law, the State Contract Act, governs state contracts for public works projects and generally requires that a department, defined as the Department of General Services and other specified state government entities, award a contract to the lowest responsible bidder. The act authorizes a contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System to provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time. The act requires this provision to be included in the project specifications and to clearly set forth the basis for the payment. Existing law establishes various procedures for the procurement of state goods and services, including consulting services and personal services. Existing law requires each state agency to conduct a postevaluation, by completing the postevaluation form, of each consulting services contract totaling $5,000 or more that it executes. Existing law requires the state agency to evaluate the performance of the contractor in doing the work or delivering the services for which the contract was awarded, including evaluating any cost overruns or delayed completions.This bill would expand the authorization to provide payment for extra compensation to the contractor, as a bonus for completion prior to the specified time, to all projects and would authorize payment for extra compensation for completion within the contract price. The bill would require under the State Contract Act that a department, as defined, conduct a postevaluation similar to the one described above for each contract awarded under the act, and would require the Department of General Services to post on its internet website a list of contractors whose performance was found to be unsatisfactory and a list of contractors whose performance was satisfactory based on those postevaluations.Existing law creates within state government, in the Government Operations Agency, the Department of General Services to provide centralized services, including, but not limited to, planning, acquisition, construction, and maintenance of state buildings and property; purchasing; printing; architectural services; administrative hearings; government claims; and accounting services. This bill would state that it is the intent of the Legislature to enact legislation related to the entities that contract with the Department of General Services.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Assembly March 19, 2019
Amended IN Assembly March 19, 2019
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Assembly Bill No. 971
Introduced by Assembly Member SalasFebruary 21, 2019
Introduced by Assembly Member Salas
February 21, 2019
An act to amend Section 10226 of, and to add Section 10111.1 to, the Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 971, as amended, Salas. Public contracts: General Services. contractor evaluations: incentive payments.
Existing law, the State Contract Act, governs state contracts for public works projects and generally requires that a department, defined as the Department of General Services and other specified state government entities, award a contract to the lowest responsible bidder. The act authorizes a contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System to provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time. The act requires this provision to be included in the project specifications and to clearly set forth the basis for the payment. Existing law establishes various procedures for the procurement of state goods and services, including consulting services and personal services. Existing law requires each state agency to conduct a postevaluation, by completing the postevaluation form, of each consulting services contract totaling $5,000 or more that it executes. Existing law requires the state agency to evaluate the performance of the contractor in doing the work or delivering the services for which the contract was awarded, including evaluating any cost overruns or delayed completions.This bill would expand the authorization to provide payment for extra compensation to the contractor, as a bonus for completion prior to the specified time, to all projects and would authorize payment for extra compensation for completion within the contract price. The bill would require under the State Contract Act that a department, as defined, conduct a postevaluation similar to the one described above for each contract awarded under the act, and would require the Department of General Services to post on its internet website a list of contractors whose performance was found to be unsatisfactory and a list of contractors whose performance was satisfactory based on those postevaluations.Existing law creates within state government, in the Government Operations Agency, the Department of General Services to provide centralized services, including, but not limited to, planning, acquisition, construction, and maintenance of state buildings and property; purchasing; printing; architectural services; administrative hearings; government claims; and accounting services. This bill would state that it is the intent of the Legislature to enact legislation related to the entities that contract with the Department of General Services.
Existing law, the State Contract Act, governs state contracts for public works projects and generally requires that a department, defined as the Department of General Services and other specified state government entities, award a contract to the lowest responsible bidder. The act authorizes a contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System to provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time. The act requires this provision to be included in the project specifications and to clearly set forth the basis for the payment. Existing law establishes various procedures for the procurement of state goods and services, including consulting services and personal services. Existing law requires each state agency to conduct a postevaluation, by completing the postevaluation form, of each consulting services contract totaling $5,000 or more that it executes. Existing law requires the state agency to evaluate the performance of the contractor in doing the work or delivering the services for which the contract was awarded, including evaluating any cost overruns or delayed completions.
This bill would expand the authorization to provide payment for extra compensation to the contractor, as a bonus for completion prior to the specified time, to all projects and would authorize payment for extra compensation for completion within the contract price. The bill would require under the State Contract Act that a department, as defined, conduct a postevaluation similar to the one described above for each contract awarded under the act, and would require the Department of General Services to post on its internet website a list of contractors whose performance was found to be unsatisfactory and a list of contractors whose performance was satisfactory based on those postevaluations.
Existing law creates within state government, in the Government Operations Agency, the Department of General Services to provide centralized services, including, but not limited to, planning, acquisition, construction, and maintenance of state buildings and property; purchasing; printing; architectural services; administrative hearings; government claims; and accounting services.
This bill would state that it is the intent of the Legislature to enact legislation related to the entities that contract with the Department of General Services.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 10111.1 is added to the Public Contract Code, to read:10111.1. (a) The department shall conduct a postevaluation, by completing the postevaluation form, of each contract for a public work totaling five thousand dollars ($5,000) or more that it executes.(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall report on all of the following:(1) Whether the contracted work was completed as specified in the contract, and reasons for and amount of any cost overruns or delayed completions.(2) Whether the contracted work met the quality standards specified in the contract.(3) Whether the contractor fulfilled all the requirements of the contract and if not, in what ways the contractor did not fulfill the contract.(4) Factors outside the control of the contractor that caused difficulties in contractor performance.(5) Other information the department may require.(c) If the contractors performance was judged unsatisfactory on any of the factors specified in subdivision (b) and was not mitigated by circumstances specified in paragraph (4) of subdivision (b), the evaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).(d) The postevaluation shall be prepared within 60 days of the completion of the contract.(e) Postevaluations shall remain on file at the offices of the awarding department for a period of 36 months following contract completion. If the contractor did not satisfactorily perform the work specified in the contract, the department conducting the evaluation shall place one copy of the evaluation form in the departments contract file and, if the department is not the Department of General Services, send one copy of the form to the Department of General Services within five working days of the completion of the evaluation.(f) Upon filing an unsatisfactory evaluation or sending a copy to the Department of General Services, the department shall notify and send a copy of the evaluation to the contractor within 15 days. (g) The Department of General Services shall post on its internet website a list of contractors whose performance was found to be unsatisfactory and a list of contractors whose performance was satisfactory. The list of contractors with unsatisfactory performance shall provide the following for each contractor:(1) Whether the contractor delayed completion of a contract and by how many days the contract was delayed.(2) Whether the costs overran the contract price and by how much.SEC. 2. Section 10226 of the Public Contract Code is amended to read:10226. Every contract shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time, time or for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.SECTION 1.It is the intent of the Legislature to enact legislation related to the entities that contract with the Department of General Services.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 10111.1 is added to the Public Contract Code, to read:10111.1. (a) The department shall conduct a postevaluation, by completing the postevaluation form, of each contract for a public work totaling five thousand dollars ($5,000) or more that it executes.(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall report on all of the following:(1) Whether the contracted work was completed as specified in the contract, and reasons for and amount of any cost overruns or delayed completions.(2) Whether the contracted work met the quality standards specified in the contract.(3) Whether the contractor fulfilled all the requirements of the contract and if not, in what ways the contractor did not fulfill the contract.(4) Factors outside the control of the contractor that caused difficulties in contractor performance.(5) Other information the department may require.(c) If the contractors performance was judged unsatisfactory on any of the factors specified in subdivision (b) and was not mitigated by circumstances specified in paragraph (4) of subdivision (b), the evaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).(d) The postevaluation shall be prepared within 60 days of the completion of the contract.(e) Postevaluations shall remain on file at the offices of the awarding department for a period of 36 months following contract completion. If the contractor did not satisfactorily perform the work specified in the contract, the department conducting the evaluation shall place one copy of the evaluation form in the departments contract file and, if the department is not the Department of General Services, send one copy of the form to the Department of General Services within five working days of the completion of the evaluation.(f) Upon filing an unsatisfactory evaluation or sending a copy to the Department of General Services, the department shall notify and send a copy of the evaluation to the contractor within 15 days. (g) The Department of General Services shall post on its internet website a list of contractors whose performance was found to be unsatisfactory and a list of contractors whose performance was satisfactory. The list of contractors with unsatisfactory performance shall provide the following for each contractor:(1) Whether the contractor delayed completion of a contract and by how many days the contract was delayed.(2) Whether the costs overran the contract price and by how much.
SECTION 1. Section 10111.1 is added to the Public Contract Code, to read:
### SECTION 1.
10111.1. (a) The department shall conduct a postevaluation, by completing the postevaluation form, of each contract for a public work totaling five thousand dollars ($5,000) or more that it executes.(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall report on all of the following:(1) Whether the contracted work was completed as specified in the contract, and reasons for and amount of any cost overruns or delayed completions.(2) Whether the contracted work met the quality standards specified in the contract.(3) Whether the contractor fulfilled all the requirements of the contract and if not, in what ways the contractor did not fulfill the contract.(4) Factors outside the control of the contractor that caused difficulties in contractor performance.(5) Other information the department may require.(c) If the contractors performance was judged unsatisfactory on any of the factors specified in subdivision (b) and was not mitigated by circumstances specified in paragraph (4) of subdivision (b), the evaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).(d) The postevaluation shall be prepared within 60 days of the completion of the contract.(e) Postevaluations shall remain on file at the offices of the awarding department for a period of 36 months following contract completion. If the contractor did not satisfactorily perform the work specified in the contract, the department conducting the evaluation shall place one copy of the evaluation form in the departments contract file and, if the department is not the Department of General Services, send one copy of the form to the Department of General Services within five working days of the completion of the evaluation.(f) Upon filing an unsatisfactory evaluation or sending a copy to the Department of General Services, the department shall notify and send a copy of the evaluation to the contractor within 15 days. (g) The Department of General Services shall post on its internet website a list of contractors whose performance was found to be unsatisfactory and a list of contractors whose performance was satisfactory. The list of contractors with unsatisfactory performance shall provide the following for each contractor:(1) Whether the contractor delayed completion of a contract and by how many days the contract was delayed.(2) Whether the costs overran the contract price and by how much.
10111.1. (a) The department shall conduct a postevaluation, by completing the postevaluation form, of each contract for a public work totaling five thousand dollars ($5,000) or more that it executes.(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall report on all of the following:(1) Whether the contracted work was completed as specified in the contract, and reasons for and amount of any cost overruns or delayed completions.(2) Whether the contracted work met the quality standards specified in the contract.(3) Whether the contractor fulfilled all the requirements of the contract and if not, in what ways the contractor did not fulfill the contract.(4) Factors outside the control of the contractor that caused difficulties in contractor performance.(5) Other information the department may require.(c) If the contractors performance was judged unsatisfactory on any of the factors specified in subdivision (b) and was not mitigated by circumstances specified in paragraph (4) of subdivision (b), the evaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).(d) The postevaluation shall be prepared within 60 days of the completion of the contract.(e) Postevaluations shall remain on file at the offices of the awarding department for a period of 36 months following contract completion. If the contractor did not satisfactorily perform the work specified in the contract, the department conducting the evaluation shall place one copy of the evaluation form in the departments contract file and, if the department is not the Department of General Services, send one copy of the form to the Department of General Services within five working days of the completion of the evaluation.(f) Upon filing an unsatisfactory evaluation or sending a copy to the Department of General Services, the department shall notify and send a copy of the evaluation to the contractor within 15 days. (g) The Department of General Services shall post on its internet website a list of contractors whose performance was found to be unsatisfactory and a list of contractors whose performance was satisfactory. The list of contractors with unsatisfactory performance shall provide the following for each contractor:(1) Whether the contractor delayed completion of a contract and by how many days the contract was delayed.(2) Whether the costs overran the contract price and by how much.
10111.1. (a) The department shall conduct a postevaluation, by completing the postevaluation form, of each contract for a public work totaling five thousand dollars ($5,000) or more that it executes.(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall report on all of the following:(1) Whether the contracted work was completed as specified in the contract, and reasons for and amount of any cost overruns or delayed completions.(2) Whether the contracted work met the quality standards specified in the contract.(3) Whether the contractor fulfilled all the requirements of the contract and if not, in what ways the contractor did not fulfill the contract.(4) Factors outside the control of the contractor that caused difficulties in contractor performance.(5) Other information the department may require.(c) If the contractors performance was judged unsatisfactory on any of the factors specified in subdivision (b) and was not mitigated by circumstances specified in paragraph (4) of subdivision (b), the evaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).(d) The postevaluation shall be prepared within 60 days of the completion of the contract.(e) Postevaluations shall remain on file at the offices of the awarding department for a period of 36 months following contract completion. If the contractor did not satisfactorily perform the work specified in the contract, the department conducting the evaluation shall place one copy of the evaluation form in the departments contract file and, if the department is not the Department of General Services, send one copy of the form to the Department of General Services within five working days of the completion of the evaluation.(f) Upon filing an unsatisfactory evaluation or sending a copy to the Department of General Services, the department shall notify and send a copy of the evaluation to the contractor within 15 days. (g) The Department of General Services shall post on its internet website a list of contractors whose performance was found to be unsatisfactory and a list of contractors whose performance was satisfactory. The list of contractors with unsatisfactory performance shall provide the following for each contractor:(1) Whether the contractor delayed completion of a contract and by how many days the contract was delayed.(2) Whether the costs overran the contract price and by how much.
10111.1. (a) The department shall conduct a postevaluation, by completing the postevaluation form, of each contract for a public work totaling five thousand dollars ($5,000) or more that it executes.
(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall report on all of the following:
(1) Whether the contracted work was completed as specified in the contract, and reasons for and amount of any cost overruns or delayed completions.
(2) Whether the contracted work met the quality standards specified in the contract.
(3) Whether the contractor fulfilled all the requirements of the contract and if not, in what ways the contractor did not fulfill the contract.
(4) Factors outside the control of the contractor that caused difficulties in contractor performance.
(5) Other information the department may require.
(c) If the contractors performance was judged unsatisfactory on any of the factors specified in subdivision (b) and was not mitigated by circumstances specified in paragraph (4) of subdivision (b), the evaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).
(d) The postevaluation shall be prepared within 60 days of the completion of the contract.
(e) Postevaluations shall remain on file at the offices of the awarding department for a period of 36 months following contract completion. If the contractor did not satisfactorily perform the work specified in the contract, the department conducting the evaluation shall place one copy of the evaluation form in the departments contract file and, if the department is not the Department of General Services, send one copy of the form to the Department of General Services within five working days of the completion of the evaluation.
(f) Upon filing an unsatisfactory evaluation or sending a copy to the Department of General Services, the department shall notify and send a copy of the evaluation to the contractor within 15 days.
(g) The Department of General Services shall post on its internet website a list of contractors whose performance was found to be unsatisfactory and a list of contractors whose performance was satisfactory. The list of contractors with unsatisfactory performance shall provide the following for each contractor:
(1) Whether the contractor delayed completion of a contract and by how many days the contract was delayed.
(2) Whether the costs overran the contract price and by how much.
SEC. 2. Section 10226 of the Public Contract Code is amended to read:10226. Every contract shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time, time or for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.
SEC. 2. Section 10226 of the Public Contract Code is amended to read:
### SEC. 2.
10226. Every contract shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time, time or for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.
10226. Every contract shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time, time or for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.
10226. Every contract shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time, time or for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.
10226. Every contract shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time, time or for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.
It is the intent of the Legislature to enact legislation related to the entities that contract with the Department of General Services.