California Public Contract Code Section 5110
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California Laws > Public Contract Code > California Public Contract Code Section 5110
5110. (a) When a project for the construction, alteration, repair,
or improvement of any structure, building, or road, or other
improvement of any kind is competitively bid and any intended or
actual award of the contract is challenged, the contract may be
entered into pending final decision of the challenge, subject to the
requirements of this section. If the contract is later determined to
be invalid due to a defect or defects in the competitive bidding
process caused solely by the public entity, the contractor who
entered into the contract with the public entity shall be entitled to
be paid the reasonable cost, specifically excluding profit, of the
labor, equipment, materials, and services furnished by the contractor
prior to the date of the determination that the contract is invalid
if all of the following conditions are met:
(1) The contractor proceeded with construction, alteration,
repair, or improvement based upon a good faith belief that the
contract was valid.
(2) The public entity has reasonably determined that the work
performed is satisfactory.
(3) Contractor fraud did not occur in the obtaining or performance
of the contract.
(4) The contract does not otherwise violate statutory or
(b) In no event shall payment to the contractor pursuant to this
section exceed either of the following:
(1) The contractor's costs as included in its bid plus the cost of
any approved change orders.
(2) The amount of the contract less profit at the point in time
the contract is determined to be invalid.
(c) Notwithstanding subdivision (a), this section shall not affect
any protest and legal proceedings, whether contractual,
administrative, or judicial, to challenge the award of the public
works contract and enforce competitive bidding laws, nor affect any
rights under Section 337.1 or 337.15 of the Code of Civil Procedure.
Last modified: February 22, 2013