CUPCCAA Basics for Public Agencies: Understanding What It Means Before You Act

Many California public agencies assume CUPCCAA is simply a way to raise bid limits on small public works projects. In reality, adopting CUPCCAA changes how an entire agency procures public works, tracks force account work, and manages compliance. Before using CUPCCAA procedures - or assuming they apply - every public agency should understand four critical questions: Are we in? Who does it apply to? Why wouldn’t an agency opt in? And what happens with maintenance?

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Why This Matters

If you work for a California public agency—whether in purchasing, facilities, maintenance, IT, food service, or any department responsible for hiring construction contractors—it is critical to understand whether your agency has adopted the California Uniform Public Construction Cost Accounting Act (CUPCCAA).

CUPCCAA changes how public works projects are procured. It adjusts bid thresholds, modifies force account limits, and introduces specific compliance requirements. Misunderstanding whether your agency is subject to CUPCCAA—or how it applies—can lead to audit findings, bid challenges, or noncompliance with state law.

This article walks through four practical questions every public agency professional should be able to answer before moving forward with a public works project.

1. Are We In?

Before applying any CUPCCAA procedures, you must confirm whether your agency has formally opted in. CUPCCAA participation is not automatic—it requires adoption by resolution and submission to the Commission.

To verify your agency’s status, use the State Controller’s Office Membership Roster resource: https://www.sco.ca.gov/ard_cuccac.html

If your agency is not listed, you should assume CUPCCAA does not apply until confirmed otherwise.

This step is critical. Applying CUPCCAA thresholds or procedures without formal adoption can create compliance issues just as easily as failing to follow it when required.

2. Who Does It Apply To?

One of the most common misunderstandings is that CUPCCAA applies only to the department that initiated the resolution.

That is not the case.

When a public agency adopts CUPCCAA, it is an agency-wide decision. Every department—regardless of function or funding source—is required to follow CUPCCAA rules for public works contracting.

This has real operational implications. In decentralized environments, individual departments may be used to handling procurement independently. Under CUPCCAA, consistency across the agency becomes essential. Training, communication, and internal controls must reflect that CUPCCAA applies universally once adopted.

3. Why Wouldn’t an Agency Opt In?

While CUPCCAA provides flexibility—particularly by offering an exception to lower traditional bid limits—it also introduces additional requirements that not every agency finds beneficial.

A primary consideration is the impact on force account work. A force account is the maximum amount of work an agency can perform using its own staff before competitive bidding is required. Under CUPCCAA, agencies must estimate labor, materials, and overhead, and document in-house work accordingly. For agencies with robust internal maintenance or construction teams, this added administrative effort can be significant.

Another factor is that some agencies, particularly cities, establish their own public works thresholds. In those cases, existing limits may already exceed what CUPCCAA offers, making the additional rules less attractive.

For these reasons, opting into CUPCCAA is not always the right fit for every agency.

4. What About Maintenance?

Maintenance is an area that often causes confusion. CUPCCAA does not automatically apply to maintenance work unless the agency specifically includes it in its resolution.

It is also important to clarify that “maintenance” refers to routine, recurring work necessary to keep facilities functioning. It does not refer to a department or a funding source.

Maintenance-related bid limits are addressed in other sections of code and are often higher than CUPCCAA’s lowest threshold of $75k. Because of this, some agencies choose not to include maintenance when adopting CUPCCAA.

If your agency’s resolution does not specifically mention maintenance, then it was not included in the adoption. If you cannot locate the resolution, or maintenance is not specified in the source then a safe best practice is to take a new resolution to your governing board or council if you want maintenance included. Don’t forget to also send it to the Commission using the instructions available on the CUPCCAA website.

What to Do Next

• Confirm whether your agency has adopted CUPCCAA

• Locate and review the original resolution

• Determine whether maintenance is included

• Ensure all departments understand CUPCCAA applies agency-wide

• Provide regular training on CUPCCAA requirements

• Subscribe to updates through the CUPCCAA website

Common Pitfalls

• Assuming CUPCCAA applies only to one department

• Using CUPCCAA procedures without confirming adoption

• Overlooking maintenance inclusion in the resolution

• Misunderstanding what qualifies as maintenance

• Failing to document force account work appropriately

Key Takeaways

• CUPCCAA is an agency-wide decision

• It provides flexibility but requires compliance

• Maintenance must be specifically included if desired

• Force account requirements may influence adoption decisions

• Ongoing training is essential for compliance

For those interested in staying engaged on purchasing and public works topics affecting California public agencies, our free Purchasing & Public Works Group may be a helpful resource.

Details here: https://www.colbitech.com/ppwg

This article is provided for informational purposes only and does not constitute legal advice. Public agencies should consult legal counsel or appropriate regulatory authorities to confirm compliance with applicable laws and regulations.