EVALUATING THE RESPONSIBILITY OF A LOW BIDDER

We hope that this portion of our web site will become your first stop in determining whether a contractor is responsible to perform your construction project.

Public Contract Code section 2001 defines a responsible bidder as one "who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the public works contract."

Issues which you should investigate in order to determine whether a contractor is responsible include the following.


    1.    Is the Contractor licensed?


    2.    Does the Contractor's license cover the type of work to be done?


    3.    Is the Contractor debarred from bidding on or performing public works (for violating prevailing wage or apprenticeship requirements)?


    4.    Are the Contractor's bonds legally adequate?


         a.    Is the surety an "admitted surety insurer"?  (Civil Code § 995.120) - type in name of company, click on appropriate company in table of results, and make sure that the company's license status is active and that it has the authority to issue surety bonds.  Print out the results and attach them to the bond.

         b.    Are the bonds in the correct amount?


         c.    Does the person who signed the bond have the authority to issue that type of bond?

The Power of Attorney (usually attached immediately behind the bond itself) describes the person's authority.  This is a good issue to discuss with legal counsel.

         d.    Was the person who signed the bond authorized to do so at the time?

The Power of Attorney also states the duration of the person's authority.

    5.    What other public agencies has the Contractor worked with and what were their experiences with the Contractor?

a.    What questions should I ask?  Click here for suggested questions.

b.    How can I avoid being sued for asking those questions?

A public agency may communicate truthful information about an independent contractor in response to a request from a prospective client without fear of being sued for slander. The communication is protected from suit so long as it is made without ill will and based on observations and evaluations of the contractor, and the prospective client has a legitimate interest in the contractor. (See, e.g., Civil Code § 47, subd. (c); Williams v. Taylor (1982) 120 Cal.App.3d 745, 752; Conkle v. Jeong (1994) 853 F.Supp. 1160.)

    6.    Has the contractor been barred from bidding on Federal projects? 

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Monterey, California  93942-3084
Telephone:  831/656-1220
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This web site and its contents are provided solely for informational purposes and should not be construed as legal advice.  In order to give legal advice, PubliConstructionLaw must be made aware of all facts which relate to the question being asked, and to establish an attorney-client relationship with the entity asking the question.

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