California Code, Public Contract Code - PCC § 10199.4

(a) After selecting a design-build entity for the design and preconstruction phase, the department may enter into a contract or contracts and direct the design-build entity to begin design and preconstruction activities sufficient to establish a separate guaranteed maximum price for the demolition of Building 38 and the remainder of the design-build project.

(b) Subject to Section 13332.19 of the Government Code, upon agreement of the guaranteed maximum price for the demolition of Building 38 or the remainder of the design-build project, the department, at its sole and absolute discretion, may amend its contract or contracts with the design-build entity or enter into a new contract or contracts, and direct the design-build entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the demolition of Building 38 or the remainder of the design-build project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities.  Any amendment of the existing contract or contracts or entering into a new contract or contracts with the design-build entity shall not require any additional competitive process.  This section does not require the department to amend an existing contract or enter into a new contract for remaining design, preconstruction, or construction activities.

(c) If the cost for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the design-build project exceeds the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity.  If the cost for these activities is less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the cost and the guaranteed maximum price.  These amounts shall revert to the fund from which the appropriation was made.

(d) If the department and the design-build entity do not reach an agreement on a guaranteed maximum price for the demolition of Building 38 or the remainder of the design-build project, or the department otherwise elects not to amend the design-build entity's contract or contracts to complete the demolition of Building 38 or the remainder of the design-build project, the department may solicit proposals to complete the demolition of Building 38 or the remainder of the design-build project from firms that submitted statements of qualifications pursuant to Section 10199.2.  The department may also, upon written determination that it is in the best interest of the state to do so, formally solicit proposals from other design-build entities to complete the demolition of Building 38 or the remainder of the design-build project or complete the design-build project using other delivery methods.  Subject to Section 13332.19 of the Government Code, a contract award shall be made on a best value basis.