A CONTRACTOR WHOSE BID IS ACCEPTED MAY NOT:
- SUBSTITUTE ANY PERSON AS SUBCONTRACTOR IN PLACE OF A SUBCONTRACTOR LISTED IN THE ORIGINAL BID, EXCEPT THAT THE INSPECTOR, ACTING ON BEHALF OF THE BOARD, MAY CONSENT TO THE SUBSTITUTION OF ANOTHER SUBCONTRACTOR FOR ONE OF THE FOLLOWING REASONS:
- When the Subcontractor listed in the bid, after having had a reasonable opportunity to do so, fails or refuses to execute a written contract, when that written contract, based upon the general terms, conditions, plans, and specifications for the project involved or the terms of that Subcontractor's written bid, is presented to the subcontractor by the prime contractor.
- When the listed Subcontractor becomes bankrupt or insolvent.
- When the listed Subcontractor fails or refuses to perform his or her subcontract.
- When the Board determines that a listed Subcontractor is not a responsible contractor.
- When the listed Subcontractor is ineligible to work on a Public Works project pursuant to Section 1777.1 or 1777.7 of the Labor Code.
- When the Inspector determines that the work performed by the listed Subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or that the Subcontractor is substantially delaying or disrupting the progress of the work.
- When the listed subcontractor is not licensed pursuant to the State of California Contractor's License Law.
- When the prime contractor demonstrates to the Inspector that the name of the subcontractor was listed as the result of an inadvertent clerical error.
- When the listed Subcontractor fails or refuses to meet the bond requirements of the prime contractor.
- Permit a subcontract to be voluntarily assigned or transferred or allow it to be performed by anyone other than the original Subcontractor listed in the Original Bid, without the consent of the Inspector.
- Other than in the performance of Change Orders causing changes or deviations from the original contract, sublet or contract any portion of the work in excess of ½ or 1 percent of the Prime Contractor's total original bid as to which his or her original bid did not designate a subcontractor.
Prior to approval of the Prime Contractor's request for the substitution:
- The Contractor shall conduct a Good Faith Effort prior to approval of any requested Subcontractor substitution, regardless of the status (WBE/MBE/OBE/DBE) of the contractor being substituted for. For MBE/WBE/OBE Subcontractor substitution requests, the Contractor shall comply with the Good Faith Effort requirements of Part III (F) (2) of the Bid Proposal. The Good Faith Effort for any requested Subcontractor substitution must be reviewed and approved by the Special Research and Investigation Section of the General Services Division of the Bureau of Contract Administration, whether the Subcontractor was Bid listed or approved after the Award of the Project.
- The Inspector shall give notice in writing to the listed Subcontractor of the Prime Contractor's request to substitute and the reason(s) for the request. The notice shall be served by certified or registered mail to the last known address of the Subcontractor. The listed Subcontractor who has been so notified shall have five (5) working days within which to submit written objection(s) to the substitution to the Inspector. Failure to file these written objection(s) shall constitute the listed subcontractor's consent to the substitution.I
If written objection(s) are filed, the Inspector shall give notice in writing of at least five (5) working days to the listed Subcontractor of a hearing by the Board on the Prime Contractor's request for substitution.
The decision by the Board regarding the request for substitution shall be binding to both parties.