Article 7. Contract Requirements of California Public Contract Code >> Division 2. >> Part 2. >> Chapter 2.5. >> Article 7.
Every contract awarded under this chapter shall be submitted
to the Attorney General or the attorney appointed according to law
and authorized to represent the trustees. Such a contract is not
binding on the state until the appropriate attorney finds it to be in
accordance with the requirements of this chapter, and endorses such
A certified copy of each contract shall be filed with the
Controller, but the failure to so file does not invalidate it.
Every contract shall provide for the filing of separate
performance and payment bonds by the contractor executed by an
admitted surety insurer, subject to the approval of the trustees.
Each bond shall be in a sum equal to at least one-half of
the contract price, except as otherwise provided in Section 9554 of
the Civil Code.
The payment bond shall secure the payment of the claims of
laborers, mechanics, or materialmen employed on the work under the
contract and shall contain all other provisions required by law.
The performance bond shall guarantee the faithful
performance of the contract by the contractor.
No payment shall be made upon the contract to the contractor
or any assignee of the contractor until an order by the trustees
that a sufficient surety be substituted on the bond, or that a new,
additional, or supplemental bond be given, is satisfied.
Every contract shall contain a provision in regard to the
time when the whole or any specified portion of the work contemplated
shall be completed, and shall provide that for each day completion
is delayed beyond the specified time, the contractor shall forfeit
and pay to the state a specified sum of money, to be deducted from
any payments due or to become due to the contractor. The sum so
specified is valid as liquidated damages unless manifestly
unreasonable under the circumstances existing at the time the
contract was made. A contract for a road project may also provide for
the payment of extra compensation to the contractor, as a bonus for
completion prior to the specified time, such provision, if used, to
be included in the specifications and to clearly set forth the basis
for such payment.
Every contract shall provide that the trustees may make
changes in the plans and specifications pursuant to this chapter.