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California Law Permits Subs Switch Under Change Order

Tuesday, September 04, 2007 12:42 pm

California Law Permits Subs Switch Under Change Order

The First District Court of Appeals of California upheld a prime contractor's decision to cancel and re-solicit subcontracted work after the awarding authority issued a change order to alter the type of work. The subcontractor sued unsuccessfully under a California subcontracting law in protest of the deletion of its work.

In October 2004, Mitchell Engineering, Inc. (Mitchell) submitted a bid to the Sacramento County Sanitation District (the district) to be the prime contractor for a substantial road development. The project included the construction of two concrete tunnels via tunnel boring machines. Affholder, Inc. (Affholder) submitted a proposal to Mitchell for this work, and Mitchell listed Affholder in its bid to the district. The district awarded Mitchell the contract for the project.

Before entering into a subcontract with Affholder, Mitchell submitted to the district a prop [...]

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