The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the legislative body awards the contract to the second lowest bidder, the amount of the lowest bidder’s security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder if cash or a check is used, or to the surety on the bidder’s bond if a bond is used.
Cal. Pub. Cont. Code § 20174
Cities
Known as the Local Agency Public Construction Act
The act spans §§ 20100–20929 (618 sections).
Applied in 1 court decision — leading case 2 Cal. 5th 505 - Roy Allan Slurry Seal, Inc. v. Am. Asphalt S., Inc. (2017)
Most recently applied in 2 Cal. 5th 505 - Roy Allan Slurry Seal, Inc. v. Am. Asphalt S., Inc. (February 2017)
Added by Stats. 1982, Ch. 465, Sec. 11.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.