BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2036|
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THIRD READING
Bill No: AB 2036
Author: Bill Berryhill (R)
Amended: 8/20/10 in Senate
Vote: 27 - Urgency
SENATE GOVERNMENTAL ORG. COMMITTEE : 8-0, 8/10/10
AYES: Wright, Harman, Florez, Negrete McLeod, Padilla,
Price, Wyland, Yee
NO VOTE RECORDED: Calderon, Denham, Oropeza
SENATE APPROPRIATIONS COMMITTEE : 11-0, 8/12/10
AYES: Kehoe, Ashburn, Alquist, Corbett, Emmerson, Leno,
Price, Walters, Wolk, Wyland, Yee
ASSEMBLY FLOOR : Not relevant
SUBJECT : Public contracts: documents
SOURCE : Author
DIGEST : This bill requires a state department and a
local agency to provide an electronic copy of a projects
contract documents to contractor plan room service when
requested and also requires a local agency to reimburse a
design professional for the actual costs of preparation and
distribution of the contract documents.
Senate Floor Amendments of 8/20/10 narrow the bill by
requiring only that an electronic copy of contract plans
and documents be provided to contractor plan rooms, and to
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expand it by requiring state, as well as local agencies, to
make such plans available.
ANALYSIS : 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
of any public structure, building, road, or other public
improvement of any kind."
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.
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.
This bill:
1.Requires that state agencies furnish contract documents
and plans, but they also eliminate the requirement that a
paper copy of the contract documents or plans be
provided.
2.Provides that the local entity shall reimburse a
landscape architect, architect or professional engineer
for the actual costs of preparation and distribution of
the plans and specifications.
3.Defines "design professional" for the bill's purpose.
Comments
According to the author's office, "a number of public
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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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12
2012-13 Fund
Document charge prohibitionUnknown, potentially significant
loss of General/
of fee revenue, ongoing. Negligible
toSpecial/
significant increase in project
costs,Bond
potentially offset by more bidders on
small projects and potentially lower
bids
SUPPORT : (Unable to verify at time of writing)
American Fence Association, California Chapter
Associated General Contractors of America, California
Chapters
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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
ARGUMENTS IN SUPPORT : The Associated General Contractors
(AGC) states 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
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 state 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.
TSM:nl 8/22/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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