California Public Contract Code

§ 10198.4

PCC § 10198.4 Effective Jul 16, 2021Div. 2 · Part 2 · Ch. 1 · Art. 6.5

Statute text

(a)After selecting a design-build entity based upon qualifications, the department may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project.

(b)(1) Subject to Section 13332.19 of the Government Code, upon agreement of the guaranteed maximum price for the project, the department, at its sole and absolute discretion, may amend its contract to direct the design-build entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities.

(2)If the cost for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the project exceed the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the cost for these activities are less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the cost and the guaranteed maximum price. These amounts shall revert to the fund from which the appropriation was made.

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Legislative history

Added by Stats. 2021, Ch. 77, Sec. 26. (AB 137) Effective July 16, 2021.