CA AB2471

Public entities must issue change orders for extra work on public works contracts within 60 days after the extra work is performed and documentation is submitted by the original contractor.

If a change order is subject to governing body approval and the body is not scheduled to meet within 60 days, the public entity has 5 days following the next scheduled meeting to issue the change order.

Public entities are liable for fair and equitable adjustments in compensation or time for performance if they fail to issue a change order within the prescribed timeframe, and prejudgment interest accrues on unpaid amounts in accordance with applicable law.

Original contractors may present change order requests for extra work performed by subcontractors or lower tier subcontractors, and subcontractors may request that original contractors present such requests to the public entity; original contractors must notify subcontractors within 45 days whether the request was presented.

When disputes exist only over the amount owed for extra work, the public entity must promptly pay the reasonable value of the work or the undisputed amount, whichever is greater.