For years, our construction law firm has been digging contractors out of messy public works claims and assisting them with claims on public works projects. We hate to see all the trouble they have to go through…which is why our construction-litigation attorneys have created a three-part California Public Works Contract series to help contractors and others involved in public projects know just what they’re getting themselves into.
Last week, in part one, we discussed what a public works contract is and the pros and cons of forming a public contract. Today, we’ll be extending this conversation to how public contracts are formed and what bonds are needed.
A private contract is formed by a mutual agreement between parties supported by some amount of money as consideration and evidenced by the parties’ signatures.
On the other hand, a Public Contract, is effective when it is awarded under competitive bidding. The duty to sign the contract is purely a formality. The contract is formed when the award is made and the parties are bound by it at that point. Such a contract cannot be impaired at the option of the public agency or of the bidder.
Public Contracts often incorporate standardized specifications and refer to various administrative codes, procedural manuals, the Code of Federal Regulations, and other documents that can have a substantial impact on the interpretation of contract provisions. These can also contain claim presentation or arbitration provisions that may directly affect the presentation and prosecution of claims. In addition, there are numerous statutory provisions that govern public contracts that need to be consulted. Subcontracts on public projects almost always incorporate the Prime Contract so you have to make sure you review the Prime Contract.
Public contracts may require Bid Bonds, Performance Bonds and Payment Bonds.
A Bid Bond guarantees that, if a construction contract is awarded, it will be signed and the successful contractor will post a bond to guarantee both that the contract will be performed and that subcontractors and material suppliers will be paid.
Performance Bonds are used on virtually all public works and many private works projects as a means to guarantee that the project will be completed. A lot of State and local agencies are required to obtain performance bonds.
Payment Bonds guarantee payment to suppliers. Civil Code §9550(a) requires contractors to file payment bonds for public contracts in excess of $25,000. A public agency may be liable for failure to require a contractor to post a payment bond.
The preceding is a summary of legal subjects provided for informational purposes only. Most legal issues need complex factual and legal analysis. You are advised not to rely on these blogs and seek legal advice about your specific issues from a licensed attorney in your jurisdiction. Nothing in these writings is intended to create, or creates, an attorney-client relationship. For consultation with a licensed attorney you may contact Ghassemian Law Group at 949-436-2785.
This article is informational only and meant to provide guidance. It is not meant to be legal advice and it does not create an attorney-client relationship. For what to do in your specific situation, please consult with a qualified Construction Law attorney.
February 16, 2026
February 09, 2026
February 02, 2026
October 17, 2025
Ghassemian Law provided thoroughly constructed and effective legal strategies for successful outcomes in the complex world of construction law for our small company. Core competence, due diligence, and a commitment to client needs are strengths that inspire confidence and keep producing results when it counts most.
I can’t say enough positive things about the incredible team at this attorney’s office. From the moment I spoke with them on the phone, I knew I was in capable hands. Even though I am a North Carolina business I had a very complex case in California. The law firm and attorneys were the best of the many, many law firms I interviewed. I can not say enough how easy they are to work with from start to finish.
Their expertise is unmatched. They navigated the complexities of my case with professionalism and confidence, leaving no stone unturned. Their depth of knowledge and strategic thinking were evident every step of the way.
What truly sets them apart is their genuine care for their clients. They listened to my concerns, answered my questions promptly, and ensured I felt supported throughout the entire process. It’s clear they care about their clients and they’re in it to make a real difference in people’s lives.
The professionalism and attention to detail displayed by this office are outstanding. They kept me informed, were always on time, and made sure I understood every aspect of my case. They turned a potentially stressful situation into a manageable one.
I’m incredibly grateful for the exceptional service and favorable outcome they delivered. If you’re seeking legal representation that combines expertise, compassion, and dedication, look no further. This attorney’s office is a true gem and worthy of every one of these five stars!
Ms. Mahyar Ghassemian provided professional, expert counsel with kindness. Sticky matters were explained with clarity, and she developed a path toward resolution. I was completely satisfied with the Ghassemian firm’s handling of my case.
Small Firm Value – Large Firm Expertise
Subscribe to our newsletter to receive regular news and updates.
