Court clarifies public works contract claims procedures in relation to government tort claim procedures

On August 25, 2008, a California appellate court held that compliance with the claims procedures set forth in a public works contract relieves a contractor from the requirement to file a government tort claim prior to filing a lawsuit, unless the contract expressly mandates that a government tort claim also be filed. (Arntz Builders v. City of Berkeley (2008) 166 Cal.App.4th 276.)

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Court clarifies subcontractor substitution requirements

A California appellate court recently clarified the requirements for substitution of a subcontractor on a public works project under Public Contract Code sections 4100-4114. (Titan Electric Corp. v. Los Angeles Unified School District (2008), 160 Cal.App.4th 188.)  Public Contract Code section 4107 prohibits a contractor on a public works project from substituting a subcontractor unless the public agency consents to the substitution, and one of nine specific statutory circumstances has occurred.  Section 4107 also requires the public agency to provide notice to the subcontractor being removed and to conduct a hearing on the substitution if requested by that subcontractor.  However, the Titan court upheld the substitution of an electrical subcontractor even though a hearing was not conducted until after a new subcontractor had already been hired and completed the remaining work, concluding that the parties had substantially complied with the statutory requirements.

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