In order to prevent fraud, waste, and abuse, the authority shall prepare for each individual job order developed under a job order contract an independent cost estimate. The estimate shall be prepared prior to the receipt of any job order contractor‘s estimate for the work and shall be compared to the job order contractor’s estimate to determine the reasonableness of that estimate before issuance of any job order. If the authority finds the job order contractor’s estimate to perform work for a given job order to be unreasonable, not cost effective, or undesirable, the authority may elect not to issue the job order to the job order contractor, and may, instead, utilize any other available procurement procedures or choose not to move forward with the work.

(Added by Stats. 2023, Ch. 87, Sec. 1. (AB 499) Effective January 1, 2024. Repealed as of January 1, 2029, pursuant to Section 20389.)

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Terms Used In California Public Contract Code 20387.5

  • authority: means the Los Angeles County Metropolitan Transportation Authority created by §. See California Public Contract Code 20385.5
  • Contract: A legal written agreement that becomes binding when signed.
  • Fraud: Intentional deception resulting in injury to another.
  • Job order: means a firm, fixed priced, lump-sum order issued by the school district to a job order contractor for a definite project scope of work as compiled from the unit price catalog to be performed pursuant to a job order contract. See California Public Contract Code 20919.21
  • Job order contractor: means a licensed, bonded, and general liability insured contractor awarded a job order contract. See California Public Contract Code 20919.21