Public Contract Code section 20387.5

In order to prevent fraud, waste, and abuse, the authority shall prepare for each individual job order developed under a job order contract an independent cost estimate. The estimate shall be prepared prior to the receipt of any job order contractor’s estimate for the work and shall be compared to the job order contractor’s estimate to determine the reasonableness of that estimate before issuance of any job order. If the authority finds the job order contractor’s estimate to perform work for a given job order to be unreasonable, not cost effective, or undesirable, the authority may elect not to issue the job order to the job order contractor, and may, instead, utilize any other available procurement procedures or choose not to move forward with the work.

Source: Section 20387.5, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=PCC§ionNum=20387.­5.­ (updated Jan. 1, 2024; accessed Oct. 12, 2026).

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Verified:
Oct. 12, 2026

§ 20387.5's source at ca​.gov