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HomePublic Contract CodeDiv. 2Pt. 2Ch. 2.5Art. 1§ 10710 Annual Contracts Repair Work

§ 10710 Annual Contracts Repair Work

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

§ 10710 Annual Contracts Repair Work

This law lets the trustees give out yearly contracts worth up to $3 million for repeatable repair or renovation jobs, using set prices per unit, and they must pick the cheapest qualified bidder.

Key Takeaways

  • •Contracts can be up to $3 million per year.
  • •Only for repeatable or typical work, not big capital projects.
  • •Awarded to the lowest responsible bidder.
  • •Prices are set per unit and multiplied by the number of units needed.

Example

A city needs to replace broken streetlights on many streets each year.

The trustees can award a single contract worth, say, $2.8 million to the lowest qualified company, using a set price for each streetlight, instead of writing separate contracts for each street.

How to Calculate

Total Contract Amount = Σ (Unit Price × Quantity) for all items

  1. Look at the bid and note the unit price for each type of work (e.g., $150 per streetlight).
  2. Multiply that unit price by how many units are needed (e.g., 200 streetlights).
  3. Do the same for every other item in the contract and add all the results together.
  4. Make sure the final total does not go over $3,000,000.

Replacing 200 streetlights at $150 each and repainting 50 signs at $80 each.

Result: Total = (150 × 200) + (80 × 50) = 30,000 + 4,000 = $34,000

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

Official Source
View on CA.gov

§ 10710 Annual Contracts Repair Work

(a) Notwithstanding any other provisions of this chapter, the trustees may award annual contracts that do not exceed three million dollars ($3,000,000) for repair or other repetitive work, or renovation or modification, to be done according to unit prices. The contracts shall be awarded to the lowest responsible bidder, and shall be based primarily on plans and specifications for typical work. No project shall be performed under a contract of this type except by order of the trustees. No annual contracts may be awarded under these provisions for capital outlay projects, where the total cost of the project exceeds the value of a minor capital outlay project for which, pursuant to Section 10108, the services of the Department of General Services are not required and a state agency or department is authorized to carry out its own project. (b) For purposes of this section, “unit price” means the amount paid for a single unit of an item of work, and “typical work” means a work description applicable universally or applicable to a large number of individual projects, as distinguished from work specifically described with respect to an individual project. (Amended by Stats. 2001, Ch. 219, Sec. 8. Effective January 1, 2002.)

Last verified: January 11, 2026

Key Terms

annual contractsunit priceslowest responsible biddertypical workcapital outlay projects

Related Statutes

  • § 20128.5 County Repair Contract Limits
  • § 10705 Minor Capital Outlay Projects
  • § 10700 California State University Contracts
  • § 10701 Definitions Project Service Contract
  • § 10702 Department Of General Services Exemption

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Contract Code. Section 10710.
View Official Source