California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 6 — Works of Improvement, Title 2 — Private Works of Improvement, Chapter 7 — Security for Large Project, Article 3 — Form of Security, Section 8730
If the contract price for a work of improvement is not a fixed price, the amount of security provided under this chapter shall be the guaranteed maximum price or, if there is no guaranteed maximum price, the owner’s and direct contractor’s good faith estimate of the reasonable value of the work to be provided pursuant to the contract.
Notes
Sets the security amount under this chapter for a work of improvement without a fixed contract price at the guaranteed maximum price. If there is no guaranteed maximum price, sets the amount at the owner’s and direct contractor’s good-faith estimate of the reasonable value of the work to be provided.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 8730 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-6/title-2/chapter-7/article-3/section-8730