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Project Thresholds Change Under Uniform Public Construction Cost Accounting Act

Public entities that utilize the UPCCAA should take note that the monetary thresholds for bidding on public projects has changed as follows:

(a) Public projects of thirty thousand dollars ($30,000) or less may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order.

(b) Public projects of one hundred seventy-five thousand dollars ($175,000) or less may be let to contract by informal procedures as set forth in this article.

(c) Public projects of more than one hundred seventy-five thousand dollars ($175,000) shall, except as otherwise provided in this article, be let to contract by formal bidding procedure.

This change was effective as of July 1, 2011, pursuant to notice letters sent to participating public entities by the California State Controller.  The change was made pursuant to Public Contract Code Section 22020, which provides that the California Uniform Construction Cost Accounting Act Commission may consider whether there have been material changes in public construction costs and make recommendations to the Controller regarding the monetary thresholds.  Furthermore, the adjustments “shall be effective beginning the fiscal year which commences not less than 60 days following the Controller’s notification to all public agencies of the adjustment.”

The Controller sent notification letters of the above changes on April 25, 2011.

If you have any questions regarding this change, or the UPCCAA, please contact Eric Casher.