AB 44: New Law Requires Contractors to List Subcontractor License Numbers on Bids
Existing law under the Subletting and Subcontracting Fair Practices Act requires prime contractors bidding public construction projects to list the names and locations of each subcontractor performing work for a public works project. The statute calls for contractors to identify each subcontractor performing more than one-half of one percent of the contractor’s total bid, or $10,000, whichever is greater. (Public Contract Code Section 4104).
Governor Jerry Brown has approved AB 44, authored by Assemblymember Joan Buchanan, which amends Public Contract Code § 4104 to require prime contractors to list the license number of each subcontractor on bid forms submitted to a public agency. This requirement goes into effect on July 1, 2014. This bill also contains an interesting twist: a 24-hour grace period. A contractor will be able to correct an inadvertent omission or error in listing the subcontractor’s license number within 24 hours after bid opening. During that 24 hour grace period, a public agency cannot reject the contractor’s bid as non-responsive and the bid is not subject to a bid protest on the grounds that the license number is either missing or incorrect.
We suggest that public agencies review their bid forms and specifications to make the appropriate changes to implement AB 44. For more information about AB 44, please contact Ben Reyes at (510) 808-2000 or via e-mail at email@example.com.