California Code, Public Contract Code - PCC § 10845

Upon such termination, the trustees may take possession of and use all or any part of the contractor's materials, tools, equipment, and appliances upon the premises to complete the contract. Thereupon, the trustees may permit the surety to complete or cause the contract work to be completed, or they may direct that all or any part of the work be completed by day's labor or by employment of other contractors on informal contracts, or both.