Bid, pricing, bonding and public works terms, plus the contractor licenses and certifications that come up on demolition and abatement projects in California.
Prices for this work: asbestos removal · lead paint removal · unit-price sheet · testing · tank and hazardous materials · all 2026 prices
Also see: notes for architects, engineers and contractors · demolition services · licenses, insurance and bonding
- Bids and pricing
- Bonds and insurance
- Public works and prevailing wage
- Licenses and certifications
- About this topic
Bids and pricing
- Allowance
- A set amount carried in a budget for work that can’t be priced exactly yet, such as abatement before the asbestos survey is done.
- Alternate
- An option priced separately from the base bid, such as crushing concrete on site or hydroseeding after grading, that the owner can add or deduct.
- Backcharge
- A cost the owner or prime contractor deducts from a contractor’s payment for work it says the contractor caused or left undone, such as cleanup or repairs. Contracts usually require written notice and a chance to correct the work before a backcharge is taken.
- Change order
- A written change to a contract’s scope, price or schedule, agreed before the added or deleted work is done. Unit prices are often used to price it.
- Change order request (COR)
- A contractor’s written request for a change order, with the added scope, cost and time. It becomes a change order only when the owner signs it, and unit prices in the contract are often used to price it.
- Exclusions
- Work or fees not included in a price, such as permits, engineering or utility disconnects. On these pages they’re listed under Not included.
- Job order contracting (JOC)
- A contract in which an agency awards a contractor a catalog of unit prices for construction tasks, adjusted by a bid factor, then issues task orders as work comes up. It is common for repair and renovation work at school districts, cities and counties.
- Liquidated damages
- A set daily amount in a contract that the contractor owes for each day of unexcused delay past the completion date, in place of proving actual losses. Time extensions granted by change order move the date it is measured from.
- Lump sum
- One fixed price for a defined scope, broken into line items so you can see what each part costs.
- Minimum charge
- The smallest job price, which covers the crew, equipment, travel and paperwork even when the quantity is small.
- Mobilization
- Bringing crews, equipment and site setup to a job before work starts.
- Notice to proceed (NTP)
- The owner’s written notice that work may start. The contract time, and any liquidated damages, usually run from the date it sets.
- Pay application
- A contractor’s monthly request for payment, billing the percent complete on each line of the schedule of values plus approved change orders, less retention. Public agencies usually require certified payroll and conditional lien releases with it.
- Punch list
- The list of small items still to be corrected or finished near the end of a job. Final payment and release of retention usually wait until it is complete.
- Request for information (RFI)
- A contractor’s written question to the owner or design team about unclear, missing or conflicting information in the plans or specifications. The answer becomes part of the project record and can lead to a change order.
- Retention
- A share of each progress payment held back until the work is complete and accepted. California public works generally limit it to 5 percent. Private contracts signed on or after January 1, 2026 are capped at 5 percent too, except residential projects of four stories or less.
- Schedule of values
- A breakdown of a contract price by task, used to bill progress payments.
- Scope by others
- Work that’s part of the project but not in this contract, such as utility disconnects by the serving utility.
- Submittal
- Product data, shop drawings, work plans, samples or certifications a contractor sends for the owner’s review before the work is done. Demolition submittals often include the demolition plan, disposal facilities, permits and the asbestos survey.
- Task order
- A single work order issued under an on-call or job order contract, with its own scope, price and schedule. Each one is priced and approved before work starts.
- Time and materials (T&M)
- Work billed by actual labor hours, equipment time and materials at agreed rates, instead of a fixed price. It is used when the scope can’t be defined in advance, with signed daily tickets as backup.
- Unit price
- A price per unit of work, such as per square foot or per linear foot, used to price added or deleted quantities.
Bonds and insurance
- Additional insured
- A party, such as the owner or prime contractor, added to a contractor’s insurance policy by endorsement so the policy also covers claims against it arising from the contractor’s work.
- Bid bond
- A bond submitted with a bid that guarantees the bidder will sign the contract and provide the required performance and payment bonds if it is awarded the job. On California public works it is usually 10 percent of the bid.
- Certificate of insurance (COI)
- A one-page summary of a contractor’s insurance policies, limits and policy dates, issued by the broker. Owners usually require it, with the required endorsements attached, before work starts.
- Experience modification rate (EMR)
- A workers’ compensation rating that compares a contractor’s injury claims with others in its trade: 1.0 is average, and lower is better. Prequalification forms usually ask for the last three years.
- Mechanics lien
- A claim against private property by an unpaid contractor, subcontractor or supplier that improved it. It can’t be recorded against public property; on public works, stop payment notices and payment bonds protect payment instead.
- Notice of completion
- A document the owner records with the county recorder after the work is finished. Recording it shortens the deadlines for liens and stop payment notices.
- OCIP
- An owner-controlled insurance program: the owner buys one insurance program, typically workers’ compensation and general liability, that covers the contractors on the site. Bids on an OCIP job leave out the cost of that coverage. A contractor-controlled version is called a CCIP.
- Payment bond
- A bond that guarantees subcontractors and suppliers get paid. California requires one for 100 percent of the contract price on public works contracts over $25,000.
- Performance bond
- A bond that guarantees the contractor will finish the work as the contract requires; if it doesn’t, the surety steps in. Public works usually require one for 100 percent of the contract price.
- Preliminary notice (20-day notice)
- A notice that subcontractors and suppliers send to the owner, prime contractor and lender to preserve their payment rights, generally within 20 days of first furnishing labor or materials. Sending it late narrows what can be claimed.
- Primary and non-contributory
- Policy wording that makes the contractor’s insurance pay first for covered claims, without asking the owner’s own insurance to share the loss.
- Stop payment notice
- A claim an unpaid subcontractor or supplier files with a public agency, or with a construction lender on private work, that requires enough of the contract funds to be held back to cover it.
- Waiver of subrogation
- An endorsement in which the contractor’s insurer gives up its right to recover a paid claim from another party to the contract, such as the owner.
Public works and prevailing wage
- Apprenticeship requirements (DAS 140 and DAS 142)
- On California public works of $30,000 or more, contractors in apprenticeable trades must notify the local apprenticeship committees (DAS 140), request apprentices when needed (DAS 142) and employ them at the required ratio, generally one apprentice hour for every five journeyman hours.
- Certified payroll
- Weekly payroll records, verified under penalty of perjury, that show each worker’s hours, trade classification and pay on a prevailing-wage job. On California public works they are submitted electronically to the Labor Commissioner.
- Davis-Bacon Act
- The federal law that requires locally prevailing wages on federally funded construction contracts over $2,000. When federal and California prevailing wage rules both apply to a job, the higher rate is paid.
- DIR project registration (PWC-100)
- The notice an awarding agency files with DIR for each public works project, listing the prime contractor and subcontractors. It links the job’s certified payroll to the project in DIR’s system.
- DIR registration
- Annual registration with the California Department of Industrial Relations that contractors and subcontractors must have to bid on or perform public works. Small projects are exempt: $25,000 or less for construction, alteration, demolition or repair, and $15,000 or less for maintenance. Bids from unregistered contractors can be rejected.
- Disabled Veteran Business Enterprise (DVBE)
- A California certification for businesses owned and run by disabled veterans. State contracts carry a 3 percent DVBE participation goal.
- Prequalification
- An agency’s review of a contractor’s experience, finances, safety record and bonding before it may bid. School and community college districts often require it on larger projects, usually with the DIR model questionnaire.
- Prevailing wage
- The minimum hourly pay and benefits, set by the Department of Industrial Relations by trade and county, that must be paid on California public works over $1,000, including demolition and site work. It raises labor cost compared with private work.
- Skilled and trained workforce
- A requirement on some California public projects, such as certain design-build and school construction contracts, that a set share of journeymen have graduated from a state-approved apprenticeship program. The bid documents say when it applies.
- Small Business (SB) and Micro certification
- California Department of General Services certification for small businesses, with a Micro category for the smallest firms. State agencies give certified small businesses a bid preference and set participation goals for them.
- Subcontractor listing (PCC 4104)
- The list of subcontractors a prime bidder must name in a California public works bid, for each subcontractor whose work is more than one-half of 1 percent of the bid (or $10,000 on streets and highways, if greater). A listed subcontractor can be replaced only for reasons the law allows, with the agency’s consent.
Licenses and certifications
- A General Engineering license
- The CSLB classification for fixed works that need specialized engineering knowledge, such as grading, excavation, paving, pipelines, sewers and other civil site work. Civil and site work public projects usually require it of the prime contractor.
- B General Building license
- The CSLB classification for building projects that involve at least two unrelated building trades. A B contractor generally can’t take a single-trade contract unless it holds that specialty license or the work is framing or carpentry.
- C-21 license
- The California Contractors State License Board classification for building moving and demolition contractors. Asbestos abatement takes a separate asbestos certification or C-22 license from the board, plus Cal/OSHA registration. Demolition services
- C-22 Asbestos Abatement license
- The Contractors State License Board classification for contractors who specialize in asbestos abatement.
- CDPH 8551 lead work notification
- The California Department of Public Health form, Abatement of Lead Hazards Notification, filed before lead abatement starts and posted at the entrances to the work area.
- CDPH lead certification (lead worker and supervisor)
- California Department of Public Health certification required for lead workers, supervisors, inspectors and other roles on lead abatement and inspection work in housing and public buildings.
- Certified Site Surveillance Technician (CSST)
- A Cal/OSHA certification for technicians who collect air samples and observe asbestos work under the direction of a certified asbestos consultant.
- CSLB (Contractors State License Board)
- The state board that licenses California contractors and issues classifications such as A, B and C-21 and certifications such as HAZ and ASB. Jobs of $1,000 or more in combined labor and materials need a licensed contractor, and any license can be checked on the CSLB website.
- CSLB ASB (asbestos) certification
- The Contractors State License Board asbestos certification that a licensed contractor needs for asbestos-related work, along with Cal/OSHA registration.
- CSLB HAZ (Hazardous Substance Removal) certification
- The Contractors State License Board certification required to remove or clean up hazardous substances, including underground storage tanks. Asbestos work requires its own certification.
- HAZWOPER (40-hour and 8-hour refresher)
- Hazardous Waste Operations and Emergency Response training under Cal/OSHA Section 5192, required for workers on hazardous waste cleanup sites. It starts with a 40-hour course, then an 8-hour refresher every year.
Bidding and building public works in California
Who’s involved
Public agencies, school and community college districts, general contractors, subcontractors, sureties, and owners comparing bids or setting up a contract.
What the work involves
These terms cover how work is priced (lump sum, unit prices, allowances, alternates), how changes and payments are handled, the bonds and insurance programs on larger jobs, prevailing wage and DIR rules for public works, and the licenses and certifications that apply to demolition and abatement.
Why it matters
Bid documents are read literally. Knowing these terms helps you compare bids priced different ways, avoid scope gaps, and confirm a contractor is registered, licensed and bondable before award.
Where it applies in Southern California
California public works require DIR registration, prevailing wages and certified payroll above set thresholds, and a payment bond on contracts over $25,000. Federal funding adds Davis-Bacon requirements.
How SoCal Removal fits in
SoCal Removal is registered with the DIR, keeps certified payroll and daily records on public works, and provides bid, performance and payment bonds for projects. Its CSLB license 980451 covers A, B and C-21, with HAZ and ASB certifications (ASB for bidding only). See our qualifications.
See all 2026 pricesCall (949) 446-0000
SoCal Removal is the business name of Abajian Enterprise, a California corporation. CSLB #980451 (A, B, C-21). Certifications: HAZ, ASB (ASB for bidding only). Verify the license · Insurance and project bonding