BILL ANALYSIS
Bill No: AB
2036
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
AB 2036 Author: Bill Berryhill
As Amended: July 15, 2010
Hearing Date: August 10, 2010
Consultant: Paul Donahue
SUBJECT
Public Works Contracts: Documents
DESCRIPTION
AB 2036 is an urgency bill requiring a state public entity
taking bids for a public work or improvement to distribute
a paper or electronic copy of the project's contract
documents to prospective bidders, subcontractor bidders and
suppliers when requested by a contractor plan room service.
The bill specifies that, if the public entity requires that
a deposit be paid as part of a paper contract documents
distribution policy, the deposit cannot exceed $250 per
set, and it shall be refunded upon return of the contract
documents within 14 days after the project is awarded.
The bill provides that the government entity shall
reimburse a landscape architect, architect or professional
engineer for the actual costs of preparation and
distribution of the plans and specifications.
EXISTING LAW
The State Contract Act enacts a comprehensive scheme
governing contracts between state departments and private
contractors for construction of public works contracts,
which are defined in existing law as agreements for the
"erection, construction, alteration, repair, or improvement
AB 2036 (Bill Berryhill) continued
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of any public structure, building, road, or other public
improvement of any kind" (Public Contract Code 1101).
Public entities advertise for bids on the State Contracts
Register by way of a notification to contractors, and
larger public works projects are also advertised in
additional publications. Before entering into any contract
for a project, the contracting entity must prepare full,
complete, and accurate plans and specifications and
estimates of cost, giving such directions as will enable
any competent mechanic or other builder to carry them out
(Public Contract Code 10120). The original draft or a
certified copy of the plans, specifications, and estimates
of cost is required to be filed in the department's offices
before further action is taken on the contract for the
project (Public Contract Code 10121).
BACKGROUND
Purpose of the bill . The author states that "a number of
public entities in California are requiring contractors,
subcontractors, and material suppliers to pay for the plans
and specification documents" on the particular bid
solicitation for the proposed public works project.
The author and supporters of the bill note that
historically, public entities authorized those seeking to
examine project plans for the purpose of determining
whether or not to bid on the proposed project to simply
take the plans and specifications after paying a deposit,
which was returned if the plans were returned to the entity
in good condition. This is in fact still the practice in
many jurisdictions in the state.
Many builders' exchanges and other contractor groups
operate "contractor plan room services," which allow their
members to view hard copy plans or download plans and
specifications for projects throughout the state. Many of
these services have become online plan services.
Arguments in support . The Associated General Contractors
(AGC) contend that charging for plans and specifications
leads to a reduction in the number of bidders competing on
a project, because subcontractors and material suppliers
avoid bidding on projects on which they must pay a
non-refundable fee just to view the plans and
AB 2036 (Bill Berryhill) continued
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specifications. In addition, AGC states that the practice
of charging fees to plans and specifications diminishes the
participation of small, minority-owned and women-owned
businesses because these firms are typically too small to
front payment of plans for project after project. AGC
contends that it often takes bidding on 8 to 10 projects to
be successful on one project.
The National Electrical Contractors Association (NECA),
Golden State Builders' Exchanges, Engineering Contractors
Association, and others argue that this emerging practice
on the part of public entities to charge for plans and
specifications is contrary to good public policy because it
limits the number of bidders by forcing them to absorb the
upfront costs before they have had a chance to review the
project details.
SUPPORT:
American Fence Association, California Chapter
Associated General Contractors of America, California
Chapters
California Fence Contractors' Association
California Legislative Conference of the Plumbing, Heating
and Piping Industry
Engineering Contractors' Association
Flasher/Barricade Association
Golden State Builders' Exchanges
Kern County Builders' Exchange
Marin Builders' Association
National Electrical Contractors Association, California
Chapters
OPPOSE:
None on file.
FISCAL COMMITTEE: Senate Appropriations Committee
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