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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