CA Uniform Public Construction Cost Accounting Act

Electing to Participate

Why Districts Adopt CUPCCAA

Without CUPCCAA

• Construction projects exceeding $15,000 generally require formal bidding.

With CUPCCAA

• Projects of $75,000 or less may be completed without bidding.
• Projects between $75,001 and $220,000 may use informal bidding procedures.
• Projects exceeding $220,000 require formal bidding.

This provides districts with significantly greater flexibility for routine facility projects and maintenance work.

How to Implement CUPCCAA

Please see the California Uniform Construction Cost Accounting Commission Manual (CUCCAC) provided by the California State Controller’s Office at Cost Accounting Policies and Procedures Manual - 2025 Edition (PDF)

Step 1: Adopt CUPCCAA

The governing board adopts a resolution that:

• Elects participation in CUPCCAA
• Adopts the State Controller's accounting procedures
• Establishes an implementation date
• Commits the district to complying with CUPCCAA requirements

Resource: Sample Board Resolution - See page 6 of the CUCCAC Manual

Step 2: Notify the State Controller

After board approval:

• Submit letter to State Controller’s Office to notify agency is opting into Act.
• Submit a copy of the adopted resolution to the State Controller's Office.
• Maintain documentation of the submission.

Step 3: Adopt Informal Bidding Procedures

The district should adopt procedures addressing:

• Informal bidding
• Contractor notifications – See pages 8-17 of the CUCCAC Manual
• Award procedures - See page 36 of the CUCCAC Manual
• Force account work
• Purchase orders
• Negotiated contracts

Resources:

Sample CUPCCAA Procedures Board Resolution (DOCX).

Sample letter to State Controller opting into Act (DOCX).

Step 4: Create and Maintain a Contractor List

See page 8 of the CUCCAC Manual for more information.

Solicit Contractors

• Publish a notice inviting contractors to register.
• Advertise during the annual registration period.

Maintain Contractor Information

• Business name
• Address
• Contact information
• Contractor license number
• License classification
• Type(s) of work performed

Ongoing Compliance Requirements

Districts participating in CUPCCAA must:

• Maintain contractor lists
• Follow applicable bid thresholds
• Avoid bid splitting
• Use proper notification procedures
• Follow adopted informal bidding policies

Failure to comply may jeopardize participation in the program.

More Information: California State Controller's Office – California Uniform Construction Cost Accounting Commission at California Uniform Construction Cost Accounting Commission . This Commission webpage also includes a Participating Agencies List where you can verify whether your district is registered to participate.

Projects $75,000 or Less

Projects with an estimated cost of $75,000 or less do not require formal or informal bidding. Be sure to comply with all applicable statutes, county requirements, and district board rules, and consult with legal counsel as needed.

Available Procurement Methods

The district may complete the work using:

• Force Account
  • District employees perform the work.
• Negotiated Contract
  • The district contracts directly with a qualified contractor or vendor.
• Purchase Order
  • The district issues a purchase order to complete the work.

Project Planning

Before selecting a procurement method, districts should:

1) Define the Scope

Determine:

• Work to be performed
• Materials required
• Labor needs
• Schedule requirements
• Special project conditions

2) Develop a Cost Estimate

A reasonable estimate helps ensure:

• Appropriate procurement method
• Budget compliance
• Accurate project planning

Benefits

Projects under this threshold can often be completed more quickly, with less administrative effort and lower procurement costs.

Informal Bidding Procedures

Projects estimated between $75,001 and $220,000 may utilize CUPCCAA's informal bidding process.

This process eliminates the need for traditional public advertisement while still maintaining competition.

Informal Bidding Process

The district typically:

1. Prepares project documents.
2. Identifies contractors from the CUPCCAA contractor list.
3. Sends invitations to bid.
4. Notify Trade Journals & Builders Exchanges outlined in CUCCAC Manual.
5. Receives bids.
6. Evaluates responsiveness and responsibility.
7. Awards the contract.

Contractor Notifications

The district notifies:

• Contractors on the CUPCCAA list that perform the applicable trade work.

Notification may be provided through:

• Email
• Mail
• Other approved notification methods

Districts must also notify:

• Notify Trade Journals & Builders Exchanges outlined in CUCCAC Manual sections 1.05 and 1.07.

Awarding the Contract

Contracts are generally awarded to the lowest responsive and responsible bidder.

Responsive Bidder

A responsive bidder:

• Submitted all required forms
• Followed bid instructions
• Met bid requirements

Responsible Bidder

A responsible bidder:

• Holds the appropriate license
• Has the capability to perform the work
• Demonstrates satisfactory qualifications and experience
• Has adequate financial and operational capacity

A contractor must be both responsive and responsible to receive award. Be sure to comply with all applicable statutes, county requirements, and district board rules, and consult with legal counsel as needed.

Exception

If all informal bids exceed $220,000 but are $235,000 or less:

• The governing board may award the contract by a four-fifths vote.
• The board must determine the original estimate was reasonable.

Key Difference from Formal Bidding

• No newspaper advertisement required.
• Shorter notice period.
• No public bid opening requirement.

Formal Public Bidding Required

Projects estimated to cost more than $220,000 must follow traditional public works bidding requirements.

Formal Bidding Process

The district:

1. Develops plans and specifications.
2. Prepares a Notice Calling for Bids.
3. Provides required public notice.
4. Receives sealed bids.
5. Determines the lowest responsive and responsible bidder.
6. Obtains governing board approval.
7. Awards the contract.

Public Notice Requirements

Notice is generally provided through:

• Newspaper Advertisement
  • Publication in a newspaper of general circulation.
    
• Trade Publications and Contractor Resources
  • Distribution to:
    • Construction trade journals
    • Plan rooms
    • Contractor organizations
    • Appropriate contractor lists
• Notice should be provided sufficiently in advance of bid opening.

Awarding the Contract

The district generally awards the contract to the lowest responsive and responsible bidder.

The successful bidder must:

• Meet all bid requirements
• Hold the required contractor license
• Demonstrate capability and capacity to perform the work
• Comply with all applicable public works requirements

Important Reminder

Projects may not be divided into smaller contracts to avoid bidding requirements. This practice, known as bid splitting, is prohibited under California public contracting laws.

Be sure to comply with all applicable statutes, county requirements, and district board rules, and consult with legal counsel as needed.

Using CUPCCAA for Maintenance

Why It Matters

Maintenance has different bidding requirements than public works. School districts may elect to use CUPCCAA thresholds for maintenance if maintenance is clearly included in the district's CUPCCAA resolution. *Note: If opting into maintenance, agency is now subject to a lower limit of $75,000.

Standard Maintenance Threshold

Formal bidding required when maintenance exceeds approximately $119,100.

The bid threshold is adjusted periodically by the State Superintendent of Public Instruction.

The current threshold became effective January 1, 2026 and can be found at California Department of Education Bid Threshold Letter.

These bid threshold letters are posted to the CDE website at Correspondence.

If Maintenance Is Included in CUPCCAA Resolution

The district may use the CUPCCAA three-tier process:

Common Maintenance Examples

May qualify as maintenance:

• Minor repairs
• Routine replacement
• Preventive maintenance work
• Ongoing upkeep activities

Typically public works:

• Renovations
• Reconstruction
• Major replacement projects
• Alterations or improvements
• Painting/repainting projects that meet the public works definition

Important

Do not "flip-flop" between maintenance and public works classifications. Be consistent and follow your adopted CUPCCAA resolution.

Emergency Procurement Under CUPCCAA

An emergency is a sudden, unexpected occurrence that creates imminent danger to life, health, property, or essential public services requiring immediate action.  See Chapter 2.5 starting on page 31 in the CUCCAC Manual.

Examples:

• Gas leak
• Storm-damaged facilities preventing school operations
• Dangerous structural failures

CUPCCAA Emergency Authority

For emergency work:

• Board may proceed immediately with repairs.
• No formal bidding required.
• 4/5 board vote required.
• Authority may be delegated to administration with required reporting back to the board.

CUPCCAA Best Practices

Follow the Three-Step Process Every Time

1. Define project
2. Estimate cost
3. Select procurement method

Never start with procurement.

Avoid Bid Splitting

Do not divide one project into multiple smaller contracts simply to avoid a higher bidding threshold.

Use Written Construction Contracts

Even under $75,000:

• Use a formal contract.
• Include prevailing wage requirements.
• Include insurance requirements.
• Obtain payment bonds when required.

Maintain Good Documentation

Maintain:

• Project estimates
• Procurement records
• Bid notices
• Contract documents
• Board approvals
• Project accounting records

Notify Contractors Consistently

• Use your CUPCCAA contractor list.
• Notify trade journals when required.
• Consider website postings and email distribution for all opportunities.

Plan Ahead

Develop:

• Annual maintenance contracts
• Emergency response contracts
• Standard specifications
• Template bid documents
• Emergency procurement procedures

When in Doubt, Use the Higher Procurement Level