BILL NUMBER: AB 1530	CHAPTERED  08/09/01

	CHAPTER  166
	FILED WITH SECRETARY OF STATE  AUGUST 9, 2001
	APPROVED BY GOVERNOR  AUGUST 8, 2001
	PASSED THE SENATE  JULY 21, 2001
	PASSED THE ASSEMBLY  MAY 17, 2001
	AMENDED IN ASSEMBLY  MAY 10, 2001

INTRODUCED BY   Assembly Member Longville

                        FEBRUARY 23, 2001

   An act to amend Section 7101 of the Public Contract Code, relating
to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1530, Longville.  Public works:  cost savings.
   Under existing law, the state or any other public entity in any
competitively bid public works contract may provide for the payment
of extra compensation to the contractor for cost reduction changes.
Existing law specifies that the extra compensation to the contractor
is 50% of the net savings in construction costs.
   This bill would increase the extra compensation to the contractor
to 60% for certain publicly supervised transportation projects if the
cost reduction changes significantly reduce or avoid traffic
congestion during construction of the project.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 7101 of the Public Contract Code is amended to
read:
   7101.  The state or any other public entity in any public works
contract awarded to the lowest bidder, may provide for the payment of
extra compensation to the contractor for the cost reduction changes
in the plans and specifications for the project made pursuant to a
proposal submitted by the contractor.  The extra compensation to the
contractor shall be 50 percent of the net savings in construction
costs as determined by the public entity.  For projects under the
supervision of the Department of Transportation or local or regional
transportation entities, the extra compensation to the contractor
shall be 60 percent of the net savings, if the cost reduction changes
significantly reduce or avoid traffic congestion during construction
of the project, in the opinion of the public entity.  The contractor
may not be required to perform the changes contained in an eligible
change proposal submitted in compliance with the provisions of the
contract unless the proposal was accepted by the public entity.