Call:(949) 436-2785
The Previous Law:
The Lease-Lease Back construction law authorizes a school district to lease a school site to a contractor for a token amount (say for example $1), if the lease contract requires the contractor to construct, or provide for the construction of, a building to be used by the school district, so long as the title to the building would vest in the school district at the end of the lease. The contractor will then build the school and lease it back to the district for up to 40 years. After the lease period, the property’s ownership will revert back to the district.
Prior to January 2017, one feature of the law was that a school contractor could be chosen without competitive bidding. This presented a lot of issues as you can imagine because it was contrary to the notions of fairness that are present in all areas of public contracting.
Its Effects:
A lot of misuse of this law happened. School boards and administrators were building facilities without going through the difficult process of asking voters to approve bonds and therefore tax themselves.
Of course some school officials also used this to avoid competitive bidding altogether. So the came up with projects, where the “leases” would last only through construction, at the end of which the contractor would be paid off, thus cutting off the other contractors from a chance to participate at all.
New Law:
As of January 2017, the law has been changed. School districts must now advertise for bids for these projects. The change allows a larger pool of contractors to participate and present competitive bids. Such a process is meant to ensure that, like any other public contract job, the lowest responsive bidder will win.
This amendment also provides for payment of costs, but not profit, to contractors who performed work on a project, but a court later finds they were not in compliance with the former law.
This is an important development. If your company is involved in public contracting, make your bidding and estimating departments aware of this new law. We at Ghassemian Law Group consistently help contractors involved in public contracting with their contracts as well as bid protests. Please call if you have any questions.
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.
June 29, 2023
June 07, 2023
May 08, 2023
April 26, 2023
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!
Mahyar and her team possess a wealth of construction and business law expertise. Expertise to both guide a client away from litigation and, if not possible, to skillfully represent them in court.
Mahyar Ghassemian and her firm are the best construction dispute litigators and negotiators in the industry. Mahyar is an expert in this area. Her firms knows the law and are very tenacious in obtaining the best results for their clients. I have been involved in very lengthy litigation as co-counsel in a very big case and jury trial. Mahyar is one of the hardest working and most effective advocates I have ever had the privilege of working with.
Small Firm Value – Large Firm Expertise
