The Public Contract Code establishes a statutory claim resolution process for contractor claims arising from public works projects. The law applies to a broad range of public entities, including state agencies, cities, counties, districts, special districts, public authorities, many state agencies, and other public entities. Among other requirements, a public entity receiving a qualifying contractor claim must conduct a reasonable review and generally provide a written response within 45 days identifying the disputed and undisputed portions of the claim. Undisputed amounts generally must be paid within 60 days after the public entity issues its written statement. The law was scheduled to expire on January 1, 2027.
SB 33 eliminates the January 1, 2027 sunset date and makes the public works claim resolution requirements permanent. The law does not create an entirely new claims process. Instead, it continues indefinitely the procedures with which covered public agencies are already required to comply. The Legislature also declared the requirements a matter of statewide concern applicable to charter cities.
Public agencies should therefore continue their existing procedures for timely reviewing and responding to contractor claims, paying undisputed amounts, and complying with the statute’s meet and confer and nonbinding mediation procedures and dispute-resolution requirements. Agencies should also ensure that public works plans or specifications include the provisions of Public Code section 9204 or a summary of those provisions, as required by statute.
SB 33 amends Public Contract Code section 9204 by removing the January 1, 2027 sunset date, thereby making the statutory public works claim resolution process permanent.
