Bidding public works by the numbers
- $150,000
- Federal contract size that requires performance and payment bonds
- Acquisition.gov (FAR 28.102)
Finding public works to bid
Public projects are posted, not hidden. The trick is watching the right sources for work that fits your trade and your region.
- The DIR public works database.California's statewide listing of public works projects.
- Cal eProcure.The state's procurement portal for solicitations.
- Local agency sites. Cities, counties, and districts post their own bids; check the agencies you want to work with directly.
Register, then bid
Before you can bid, you have to be registered. DIR registration is required to bid and work on public works in California, so handle it first. See the DIR registration guide for what it is and who needs it.
On public works, prevailing wage and certified payroll apply. Build those obligations into your bid and your back office before you commit to the job, not after.
The bonds you need
Public works are bonded work, and the bonds come in two stages. To bid, you typically need a bid bond. If you win, you furnish a performance bond and a payment bond before the contract is signed.
- Bid bond. Guarantees you will honor your bid and furnish the required bonds if you are awarded the job.
- Performance and payment bonds. Guarantee the work gets completed and that your subs and suppliers get paid.
Set the bonding up early. Start at the contract bonds hub and we will build the capacity you need to bid and deliver.
Two things to plan for before you sign
Public agencies hold back a percentage of every progress payment as retention, and on a long job that is a large amount of your own working capital parked somewhere you cannot use it. California gives you a statutory route out: substituting securities or escrow for retention gets the cash back while the job runs, and the agency cannot refuse the request.
At the other end, final payment on a bonded job does not move until your surety signs a consent of surety to final payment. Knowing that on day one is worth a lot more than discovering it the month you are waiting on the last check.
