§ 10705 Minor Capital Outlay Projects

This law lets trustees do small projects without the full rules if the cost is low, and it forces them to get written bids for projects over $5,000, while limiting how much they can spend on day‑labor to $20,000.

Key Takeaways

•Projects that are cheap enough (under the minor‑outlay limit) can skip the full chapter rules.
•Any project costing more than $5,000 must have written bids and go to the lowest responsible bidder.
•Day‑labor can be used for larger projects, but the total day‑labor spend cannot exceed $20,000.

Example

A state office needs to replace a broken window that will cost $4,200.

Because the cost is under the $5,000 limit, the trustees can do the work without asking for bids or following the full chapter rules.

How to Calculate

If EstimatedCost > $5,000 → require written bids; If using DayLabor, DayLaborCost ≤ $20,000

Find the estimated total cost of the project.
Compare the cost to $5,000.
Step 3a: If the cost is $5,000 or less, you can proceed without bids.
Step 3b: If the cost is more than $5,000, write out a request for bids and pick the lowest responsible bidder, or reject all bids.
If you decide to use day‑labor instead of a contract, add up all day‑labor expenses and make sure the total does not go over $20,000.

A department wants to build a small storage shed estimated at $12,000.

Result: Because $12,000 > $5,000, the trustees must solicit written bids and award the work to the lowest responsible bidder, which is the $11,500 bid. If they instead use day‑labor, the $15,000 spent is allowed because it is under the $20,000 day‑labor limit.

(a) When, in the opinion of the trustees, the work does not require the application of all of the provisions of this chapter in connection therewith, the trustees may carry out the project pursuant to this section if the estimated cost does not exceed the value of a minor capital outlay project for which, pursuant to Section 10108, the services of the Department of General Services are not required and a state agency or department is authorized to carry out its own project. (b) If the estimated total cost of any construction project or work carried out under this section exceeds five thousand dollars ($5,000), the trustees shall solicit bids in writing and shall award the work to the lowest responsible bidder or reject all bids. The trustees may carry out work in excess of five thousand dollars ($5,000) under this section by day labor if the trustees deem that the award of a contract, the acceptance of bids, or the acceptance of further bids is not in the best interests of the state, but the amount of work performed by day labor under this section shall not exceed the sum of twenty thousand dollars ($20,000). (Amended by Stats. 2001, Ch. 219, Sec. 7. Effective January 1, 2002.)

Key Takeaways

•Projects that are cheap enough (under the minor‑outlay limit) can skip the full chapter rules.
•Any project costing more than $5,000 must have written bids and go to the lowest responsible bidder.
•Day‑labor can be used for larger projects, but the total day‑labor spend cannot exceed $20,000.

Example

A state office needs to replace a broken window that will cost $4,200.

Because the cost is under the $5,000 limit, the trustees can do the work without asking for bids or following the full chapter rules.

How to Calculate

If EstimatedCost > $5,000 → require written bids; If using DayLabor, DayLaborCost ≤ $20,000

Find the estimated total cost of the project.
Compare the cost to $5,000.
Step 3a: If the cost is $5,000 or less, you can proceed without bids.
Step 3b: If the cost is more than $5,000, write out a request for bids and pick the lowest responsible bidder, or reject all bids.
If you decide to use day‑labor instead of a contract, add up all day‑labor expenses and make sure the total does not go over $20,000.

A department wants to build a small storage shed estimated at $12,000.

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 10705 Minor Capital Outlay Projects

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