Section 81704 Of Chapter 3.5. Design-build Contracts From California Education Code >> Division 7. >> Title 3. >> Part 49. >> Chapter 3.5.
81704
. (a) Any design-build entity that is selected to design and
build a project pursuant to this chapter shall possess or obtain
sufficient bonding to cover the contract amount for nondesign
services, and errors and omission insurance coverage sufficient to
cover all design and architectural services provided in the contract.
This chapter does not prohibit a general or engineering contractor
from being designated the lead entity on a design-build entity for
the purposes of purchasing necessary bonding to cover the activities
of the design-build entity.
(b) Any payment or performance bond written for the purposes of
this chapter shall use a bond form developed by the Department of
General Services pursuant to subdivision (g) of Section 14661 of the
Government Code. The purpose of this subdivision is to promote
uniformity of bond forms to be used on community college district
design-build projects throughout the state.
(c) (1) All subcontracts that were not listed by the design-build
entity in accordance with Section 81703 shall be awarded by the
design-build entity in accordance with the design-build process set
forth by the community college district in the design-build package.
(2) The design-build entity shall do all of the following:
(A) Provide public notice of the availability of work to be
subcontracted.
(B) Provide a fixed date and time on which the subcontracted work
will be awarded.
(3) Subcontractors bidding on contracts pursuant to this
subdivision shall be afforded the protections contained in Chapter 4
(commencing with Section 4100) of Part 1 of Division 2 of the Public
Contract Code.
(4) (A) If the community college district elects to award a
project pursuant to this section, retention proceeds withheld by the
community college district from the design-build entity shall not
exceed 5 percent if a performance and payment bond, issued by an
admitted surety insurer, is required in the solicitation of bids.
(B) In a contract between the design-build entity and a
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld shall not exceed the percentage specified in the contract
between the community college district and the design-build entity.
If the design-build entity provides written notice to any
subcontractor who is not a member of the design-build entity, prior
to or at the time the bid is requested, that a bond may be required
and the subcontractor subsequently is unable or refuses to furnish a
bond to the design-build entity, then the design-build entity may
withhold retention proceeds in excess of the percentage specified in
the contract between the community college district and the
design-build entity from any payment made by the design-build entity
to the subcontractor.
(5) In accordance with the provisions of applicable state law, the
design-build entity may be permitted to substitute securities in
lieu of the withholding from progress payments. Substitutions shall
be made in accordance with Section 22300 of the Public Contract Code.
(d) (1) For contracts for public works projects awarded prior to
January 1, 2012, the community college district shall establish and
enforce a labor compliance program containing the requirements
outlined in Section 1771.5 of the Labor Code or shall contract with a
third party to operate a labor compliance program containing the
requirements outlined in Section 1771.5 of the Labor Code. This
requirement shall not apply to projects where the community college
district or the design-build entity has entered into a collective
bargaining agreement that binds all of the contractors performing
work on the project.
(2) For contracts for public works projects awarded on or after
January 1, 2012, the project shall be subject to the requirements of
Section 1771.4 of the Labor Code.