Design and Construction Report staff writer
Legislation that would give local governments in California greater flexibility in selecting contractors for public construction projects has cleared both houses of the state legislature and is now awaiting a signature from Gov. Gavin Newsom.
Assembly Bill 1786, introduced by Assemblymember John Harabedian, D-Pasadena, would expand best-value construction contracting authority to the San Gabriel Valley Council of Governments and general law cities.
The approach would allow eligible public agencies to consider factors beyond the lowest bid when awarding construction contracts, including a contractor’s experience, capacity and ability to complete a project on time.
Supporters say selecting a contractor solely on the basis of the lowest price can result in higher costs if a contractor lacks the resources or experience needed to successfully deliver a project, leading to delays and additional expenses.
“Local governments should have the flexibility to choose the best value for taxpayers, not simply the lowest number on a piece of paper,” Harabedian said in a statement. “When we are talking about roads, parks, housing, and other projects people depend on, Californians deserve projects that are done right and at a reasonable cost.”
The legislation originated from concerns raised by the San Gabriel Valley Council of Governments about barriers to delivering infrastructure projects efficiently, according to the organization.
Ed Reece, president of the San Gabriel Valley Council of Governments, said the bill would provide local governments with greater flexibility when selecting contractors.
“Best value contracting will give local governments greater flexibility to select contractors based on experience, expertise, and value — not simply the lowest bid,” Reece said. He urged Newsom to sign the legislation into law.
If signed, AB 1786 would give eligible local governments another procurement option for projects including roads, parks, housing and other public infrastructure.
The bill now heads to Newsom for consideration.
