California · Public Contract Code - PCC

PCC §22192: (a) (1) Upon agreement of the pricing, including any guaranteed maximum price if applicable, for any relevant aspects of the project, the city, in its sole and absolute discretion, may do all of the f

What this law says, in plain English

A city may exercise discretion regarding pricing agreements for project aspects, including guaranteed maximum prices.

Read the full statutory text
(a) (1) Upon agreement of the pricing, including any guaranteed maximum price if applicable, for any relevant aspects of the project, the city, in its sole and absolute discretion, may do all of the following: (A) Amend its contract with the business entity. (B) Direct the business entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project or any part of the project. (C) Add funds to the contract for the activities pursuant to this subdivision. (2) Any amendment of the existing contract with the business entity shall not require any additional competitive process. (3) This section does not require the city to amend an existing contract or enter into a new contract for remaining design, preconstruction, or construction activities for the project. (b) (1) If the city and the business entity do not reach an agreement on pricing for any relevant aspect of the project, or if the city otherwise elects not to have the business entity complete some or all of the remaining work, the city may solicit proposals to complete some or all of the remaining work for the project from firms that previously submitted proposals. (2) (A) The city may, upon written determination that it is in the best interest of the city to do so, formally solicit proposals from other business entities to complete some or all of the remaining work for the project, or complete the project using other delivery methods. (B) If otherwise applicable to the city, any contract awarded for the project shall be made on a best value basis.

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