Associated Builders & Contractors v. Contra Costa Water District

In this case, we hold that Contra Costa Water District (District), a county water district formed under Water Code section 30000 et seq., and expressly authorized by statute (Wat. Code, § 31483) to issue revenue bonds under the Revenue Bond Law of 1941 (Gov. Code, § 54300 et seq.) to finance construction of facilities for the storage, transmission, distribution, or treatment of water for beneficial use, is not required to contract for such construction with a lowest qualified responsible bidder (lowest bidder).

The District solicited bids for construction of a $450 million water system, reservoir, and pipeline project (project). That solicitation limited bidding to those contractors which would accept a project labor agreement (PLA) included in the contract documents negotiated between the District and the Contra Costa Building and Construction Trades Council, AFL-CIO (Union). The PLA, in essence, provided that only contractors and subcontractors bound to hire union labor would be eligible to bid or contract for construction of the project.

Associated Builders and Contractors, Golden Gate Chapter, Inc., and Bay Area Black Contractors, Inc., appellants herein, whose…