BILL NUMBER: SB 1605	CHAPTERED
	BILL TEXT

	CHAPTER  183
	FILED WITH SECRETARY OF STATE  AUGUST 28, 2006
	APPROVED BY GOVERNOR  AUGUST 28, 2006
	PASSED THE ASSEMBLY  AUGUST 10, 2006
	PASSED THE SENATE  MAY 4, 2006
	AMENDED IN SENATE  MARCH 27, 2006

INTRODUCED BY   Senator Margett

                        FEBRUARY 24, 2006

   An act to amend Section 7104 of the Public Contract Code, relating
to public works.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1605, Margett  Public contracts: public works.
   Exiting law requires any public works contract of a local public
entity that involves digging trenches or other excavations that
extend deeper than 4 feet below the surface contain a clause that
provides: (1) that the contractor is required to notify the public
entity of specified conditions concerning hazardous waste, subsurface
or latent conditions, or unknown physical conditions, (2) that the
public entity is required to promptly investigate the conditions and
if it makes certain findings regarding the conditions, a change order
shall be issued under the procedures described in the contract, and
(3) that, as specified, in the event a dispute arises between the
public entity and the contractor, the contractor shall not be excused
from performance.
   This bill would specify that the contractor notify in writing the
local public entity of any subsurface or latent physical conditions
that differ from the conditions indicated by information about the
site made available to bidders prior to the deadline for submitting
bids.


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


  SECTION 1.  Section 7104 of the Public Contract Code is amended to
read:
   7104.  Any public works contract of a local public entity which
involves digging trenches or other excavations that extend deeper
than four feet below the surface shall contain a clause which
provides the following:
   (a) That the contractor shall promptly, and before the following
conditions are disturbed, notify the local public entity, in writing,
of any:
   (1) Material that the contractor believes may be material that is
hazardous waste, as defined in Section 25117 of the Health and Safety
Code, that is required to be removed to a Class I, Class II, or
Class III disposal site in accordance with provisions of existing
law.
   (2) Subsurface or latent physical conditions at the site differing
from those indicated by information about the site made available to
bidders prior to the deadline for submitting bids.
   (3) Unknown physical conditions at the site of any unusual nature,
different materially from those ordinarily encountered and generally
recognized as inherent in work of the character provided for in the
contract.
   (b) That the local public entity shall promptly investigate the
conditions, and if it finds that the conditions do materially so
differ, or do involve hazardous waste, and cause a decrease or
increase in the contractor's cost of, or the time required for,
performance of any part of the work shall issue a change order under
the procedures described in the contract.
   (c) That, in the event that a dispute arises between the local
public entity and the contractor whether the conditions materially
differ, or involve hazardous waste, or cause a decrease or increase
in the contractor's cost of, or time required for, performance of any
part of the work, the contractor shall not be excused from any
scheduled completion date provided for by the contract, but shall
proceed with all work to be performed under the contract. The
contractor shall retain any and all rights provided either by
contract or by law which pertain to the resolution of disputes and
protests between the contracting parties.