Signed into law on September 29, 2024, Assembly Bill 2192 will increase the bidding thresholds for school districts and community college district who have adopted the California Uniform Public Construction Cost Accounting Act (CUPCCAA). The default bid threshold for construction services contracts for school district and community college district facilities is $15,000. School districts and community college districts that have adopted CUPCCAA are subject to higher bid thresholds for construction services contracts than under the default statute. Effective January 1, 2025, CUPCCAA bid thresholds for construction services contracts are as follows:

1. Public projects of $75,000 or less (increased from $60,000 or less) may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order without bidding;
2. Public projects of $220,000 or less (increased from $200,000 or less) may be awarded by informal bidding procedures*; and
3. Public projects of more than $220,000 must be awarded by formal bidding procedures.

* In the event all informal bids received are in excess of $220,000, a governing board may award the contract at $235,000 or less to the lowest responsible bidder by 4/5th vote if it determines the cost estimate was reasonable.

Any questions about limitations on change orders should be directed to your attorney.

In addition, the CUPCCAA Commission currently has authority to review whether work (1) after rejection of all bids, can be done less expensively by the public agency, (2) exceeded the force account limits, or (3) has been improperly classified as maintenance, as well as whether the public agency has complied with requirements to enact an informal bidding ordinance.  AB 2192 expands the CUPCCAA Commission’s authority to review whether work undertaken by a public agency violates (1) the bid splitting prohibition or (2) has exceeded the limits or otherwise does not comply with bidding procedures including publication or posted and electronic transmission of notice inviting bids.

For more information about the adjusted bid thresholds, front end construction documents, or whether adopting CUPCCAA makes sense for your district, please contact an attorney in DWK’s Business, Property and Construction practice group.