By Matthew (Matt) Hilliard, Bay Area Regional Compliance Manager. -
As a big supporter of local agencies adopting the California Uniform Construction Cost Accounting Act (CUCCAA), The Construction Industry Force Account Council (CIFAC) must take every step to ensure that if an agency is using the provisions in CUCCAA, that they have followed all the proper procedures to become signatory and are in full compliance with the Act. CIFAC supports the Act because it creates an increase in project advertisement and project accounting requirements over the State's General Law. Both of which create greater transparency and in turn, obligates agencies to stay compliant with the Public Contract Code.
Whether it be a County, City/Town, School District or a Special District, all local agencies that want to become signatory to CUCCAA must first pass a resolution through their governing board to become subject to the uniform construction cost accounting procedures. The resolution shall specify that the local agency will meet the requirement prescribed in the Act.
An additional requirement is that an informal bidding ordinance shall be enacted by the participating agency. Informal bidding is not allowed by State General Law but is allowed once an agency becomes signatory to the Act.
The final step, which seems to be overlooked in some cases, is that the agency “opting-in” to CUCCAA, must notify the Office of the State Controller in writing of the election to become subject to the uniform construction cost accounting procedures and include a copy of the resolution.
CIFAC’s Regional Compliance Managers (RCM), both in Northern and Southern California have encountered on numerous occasions, agencies whose governing board have past the resolution to become subject to the Act and have created the informal bidding ordinance, but are out of compliance because they did not take the final step of notifying the Office of the State Controller. In an effort to help with this compliance issue, our RCM will often provide guidance to the agency, directing them on how to become compliant with the Act. If you have any questions in regards to CUCCAA or other Public Contract Code questions please contact CIFAC at 1-800-755-3354 or visit us on the web at www.cifac.org.