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HomeGovernment CodeDiv. 1Pt. 1Ch. 1Art. 3§ 50054 Public Works Cost Recovery

§ 50054 Public Works Cost Recovery

Government Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 50054 Public Works Cost Recovery

Key Takeaways

  • •If a city or county builds something for another local government, they must charge enough to cover all their costs.
  • •The price must include money for workers, materials, equipment, and extra costs like office expenses.
  • •They can add a fair amount for overhead, like admin and indirect labor costs.

Example

City A builds a new park for City B.

City A must charge City B enough money to pay for all the workers, materials like wood and paint, and even the cost of running their offices while they do the work.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 50054 Public Works Cost Recovery

Whenever any city or county or city and county renders construction services or constructs public works for any city, county, city and county or any other governmental agency below the level of the state government, the price charged for such services or construction shall be sufficient to reimburse the governmental body performing such services for the full cost thereof including labor, material, equipment costs or rentals and a reasonable allowance for overhead. In computing overhead, without limitation on other factors properly includable, there shall be allocated to the overhead cost its proportionate share of indirect labor and administrative costs. (Added by Stats. 1971, Ch. 558.)

Last verified: January 22, 2026

Key Terms

allowanceportequipmentconstructionlimitation

Related Statutes

  • § 14035 Rail Service Contracts Authority
  • § 15901 Governor'S Annual Economic Report
  • § 16315 Pre-Construction Cost Reimbursement
  • § 18571 Construction Of Part
  • § 22854.5 Health Plan Cost Disclosure

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 50054.
View Official Source