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HomePublic Contract CodeDiv. 2Pt. 2Ch. 1Art. 1§ 10108 State Agency Project Exemption

§ 10108 State Agency Project Exemption

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

§ 10108 State Agency Project Exemption

This law lets a state agency do a project itself if it will cost $600,000 or less, and says when they have to get bids or can use day labor.

Key Takeaways

  • •Projects costing $600,000 or less can be done directly by the agency.
  • •If a project costs more than $25,000, written bids must be requested unless the director allows day labor.
  • •Day‑labor work is limited to $35,000 (or $50,000 for district agricultural projects).

Example

A county wants to build a new community garden shed that will cost $120,000.

Because the cost is under $600,000, the agency can do the project itself. Since the cost is over $25,000, they normally have to ask for written bids and pick the cheapest one, unless the director says they can use day labor.

How to Calculate

If EstimatedCost ≤ $600,000 → project may be done directly by the agency. If EstimatedCost > $25,000 → must solicit written bids unless director allows day labor. DayLaborCap = $50,000 for district agricultural projects, otherwise $35,000.

  1. Look at the total estimated cost of the project.
  2. Check if the cost is $600,000 or less. If yes, the agency can do it itself.
  3. If the cost is more than $25,000, decide whether to get bids or use day labor.
  4. If using day labor, make sure the amount of work does not exceed $35,000 (or $50,000 for a district agricultural project).

A state lands commission wants to build a small parking lot that will cost $40,000.

Result: The cost is under $600,000, so the commission can do the project itself. Because $40,000 is above $25,000, they normally need to get bids. If the director decides day labor is better, they can use day labor up to $35,000, but the remaining $5,000 would still need to be covered by a contract or other means.

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

Official Source
View on CA.gov

§ 10108 State Agency Project Exemption

Where the nature of the work in the opinion of the department is such that its services in connection therewith are not required, it may authorize the carrying out of the project directly by the state agency concerned therewith if the estimated cost does not exceed six hundred thousand dollars ($600,000), except that the six hundred thousand dollar ($600,000) limitation shall not apply to a project of a district agricultural association or a project of the State Lands Commission. Any capital outlay project with a total value that does not exceed six hundred thousand dollars ($600,000) may be budgeted as a minor capital outlay project. This limit shall be adjusted pursuant to subdivision (b) of Section 10105. If the estimated total cost of any construction project or work carried out under this section exceeds twenty-five thousand dollars ($25,000), the district or agency shall solicit bids in writing and shall award the work to the lowest responsible bidder or reject all bids. However, the director may authorize the district or agency to carry out work in excess of twenty-five thousand dollars ($25,000) under the provisions of this section by day labor if he or she deems that the award of a contract, the acceptance of bids, or the acceptance of further bids is not in the best interests of the state. In no event shall the amount of work performed by day labor under this section exceed the sum of fifty thousand dollars ($50,000) in the case of district agricultural association fair projects, or thirty-five thousand dollars ($35,000) in other cases. (Amended by Stats. 2010, Ch. 252, Sec. 3. (AB 2181) Effective January 1, 2011.)

Last verified: January 11, 2026

Key Terms

six hundred thousand dollars ($600,000)

Related Statutes

  • § 20103.6 Architect Indemnity Disclosure Requirement
  • § 10100 State Contract Act
  • § 10101 Contracts Excluded From Chapter
  • § 10102 San Francisco Port Exemption
  • § 10103 Public Utility Work Exemption

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Contract Code. Section 10108.
View Official Source