§ 10105 State Project Cost Threshold

This law says a state building project can’t cost more than a set dollar amount; the amount is $250,000 for 2010 and is changed every two years based on a construction price index.

Key Takeaways

•A “project” includes any state building, road, or improvement that costs more than the set limit.
•The cost limit was $250,000 in 2010 and is updated every two years.
•The update uses the percentage change in the California Construction Index and then rounds to the nearest $1,000.

Example

A state agency wants to build a new road in 2012 that will cost $300,000.

First they look up the updated cost limit for 2012. If the limit is lower than $300,000, the project needs extra approval because it exceeds the allowed amount.

How to Calculate

New Limit = Prior Limit × (1 + Percentage Change in California Construction Index)

Start with the previous two‑year limit (e.g., $250,000 for 2010).
Find the percent change in the California Construction Index for the next two‑year period.
Add 1 to that percent (e.g., 1 + 0.04 for a 4% increase).
Multiply the prior limit by the result from Step 3.
Round the product to the nearest $1,000.

Calculate the limit for 2012 if the construction index rose 4% from 2010 to 2012.

Result: New Limit = $250,000 × (1 + 0.04) = $260,000. Rounded to the nearest $1,000, the limit stays $260,000.

(a) As used in this chapter, “project” includes the erection, construction, alteration, repair, or improvement of any state structure, building, road, or other state improvement of any kind that will exceed a total cost calculated pursuant to subdivision (b). (b) The total cost limit for calendar year 2010 shall be two hundred fifty thousand dollars ($250,000), and at two year intervals thereafter, the total cost limit shall be adjusted upward or downward by the Director of Finance to reflect the percentage change in the annual California Construction Index as used by the Department of General Services. The amount shall be rounded off to the nearest one-thousand-dollar ($1,000) figure. (Amended by Stats. 2010, Ch. 328, Sec. 190. (SB 1330) Effective January 1, 2011.)

This law says a state building project can’t cost more than a set dollar amount; the amount is $250,000 for 2010 and is changed every two years based on a construction price index.

Key Takeaways

•A “project” includes any state building, road, or improvement that costs more than the set limit.
•The cost limit was $250,000 in 2010 and is updated every two years.
•The update uses the percentage change in the California Construction Index and then rounds to the nearest $1,000.

Example

A state agency wants to build a new road in 2012 that will cost $300,000.

First they look up the updated cost limit for 2012. If the limit is lower than $300,000, the project needs extra approval because it exceeds the allowed amount.

How to Calculate

New Limit = Prior Limit × (1 + Percentage Change in California Construction Index)

Start with the previous two‑year limit (e.g., $250,000 for 2010).
Find the percent change in the California Construction Index for the next two‑year period.
Add 1 to that percent (e.g., 1 + 0.04 for a 4% increase).
Multiply the prior limit by the result from Step 3.
Round the product to the nearest $1,000.

Calculate the limit for 2012 if the construction index rose 4% from 2010 to 2012.

Result: New Limit = $250,000 × (1 + 0.04) = $260,000. Rounded to the nearest $1,000, the limit stays $260,000.

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 10105 State Project Cost Threshold

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References