# San Diego Unified School District: Prequalification, Labor Agreement and Bond Program URL: https://mycontractorsinsurancequote.com/projects/school-construction/san-diego-unified Updated: 2026-10-29 · Reviewed by the Principal, Gleason Insurance Brokers, LLC Publisher: My Contractors Insurance Quote, a website of Gleason Insurance Brokers, LLC San Diego Unified School District requires prime contractors to prequalify for lease-leaseback and design-bid-build projects estimated over $1 million, asks for audited financial statements on projects over $10 million and uses only DIR-registered contractors and subcontractors, with a mandatory 3 percent disabled veteran business enterprise (DVBE) participation on publicly bid construction contracts. Proposition S and Proposition Z work of $1 million or more falls under the district's Project Stabilization Agreement, and the district lists four voter-approved general obligation bond measures, S, Z, YY and U, that add up to about $11.5 billion. Bid security, bonds, insurance, retention and warranty were not stated on the district pages we read, so each solicitation's documents set those terms. ## Key Decision Points - Primes on lease-leaseback and design-bid-build projects over $1 million prequalify, and MEP subcontractors prequalify on design-bid-build projects estimated over $1 million. - Prequalification expires one year from the date of approval, and project references must be prime contractor work of $1 million or more. - Projects over $10 million call for audited financial statements; projects under $10 million call for reviewed statements. - The district uses only DIR-registered contractors and subcontractors and requires 3 percent DVBE participation on publicly bid construction contracts. - The Project Stabilization Agreement reaches Proposition S and Z work of $1 million or more and requires apprentices from joint labor-management programs. - Voters approved Proposition S ($2.1 billion, 2008), Proposition Z ($2.8 billion, 2012), Measure YY ($3.4 billion, 2018) and Measure U ($3.2 billion, 2022). ## San Diego Unified and the City of San Diego Are Separate Owners San Diego Unified School District is its own public agency, with its own board, its own bond program and its own construction contracts. The City of San Diego is a different public owner with its own municipal code, prequalification program, bid documents and insurance provisions. A contractor prequalified with the City is not prequalified with the district by that fact alone, and the reverse holds too, so a firm that bids both typically keeps two sets of approvals, expiration dates and contract terms. The district's construction work also sits under state rules that the City's work does not: school buildings are DSA projects, with a DSA-approved project inspector, 48-hour notices on form DSA 156 and a final DSA 6-C verified report from the contractor. The City's separate rules for its own capital contracts are set out in [City of San Diego contract bond and insurance requirements](https://mycontractorsinsurancequote.com/construction-surety-bonds/public-agency-contractor-requirements/city-of-san-diego). ## Prequalification Over $1 Million and How Long It Lasts The district's Facilities Planning and Construction prequalification page states that prime contractors on lease-leaseback and design-bid-build projects over $1 million must prequalify, and that MEP subcontractors are required for all design-bid-build projects estimated over $1 million. The page sets submission deadlines of five or 10 business days before the bid due date, depending on the project. Approval expires one year from the date of approval. Project references must be completed prime contractor work on projects of $1 million or more. The district's construction contracts page repeats the rule from the bidder's side: a firm must submit a prequalification package to bid on projects over $1 million. State law points the same way, since Public Contract Code section 20111.6 as enacted in 2012 required larger districts to prequalify bidders and MEP subcontractors on state-funded work of $1 million or more. A firm whose approval is close to expiring typically renews before a target bid's deadline rather than after. The statewide rules behind this, including DSA oversight and PCC 20111.6, are covered in [California school construction requirements under DSA](https://mycontractorsinsurancequote.com/projects/school-construction/california-dsa-and-school-districts). ### Illustrative scenario: A General Contractor Steps Up to a Larger District Bid Torrey Mesa Builders, a general contractor with about $40 million in annual revenue, has completed several San Diego Unified projects under $10 million using reviewed financial statements. It now plans to bid a $14 million design-bid-build classroom building funded by Proposition Z, so it engages its accountant for an audit well ahead of the prequalification deadline and confirms its own approval will not expire before bid day. It checks that its mechanical, electrical and plumbing subcontractors are prequalified and DIR-registered, lines up a DVBE-certified supplier and site work partner toward the 3 percent requirement and prices labor under the Project Stabilization Agreement. Its broker compares the solicitation's bond and insurance terms with its surety capacity and policy endorsements. These details are hypothetical, and a real program depends on the district, the surety and carriers and the firm's own risk. ## Audited Financials Over $10 Million The prequalification page ties the financial statement to project size. Projects over $10 million call for submission of audited financials, and projects under $10 million call for reviewed financial statements. A contractor that has carried reviewed statements for smaller public work has to plan ahead for the larger jobs, since an audit takes its own time and an outside accountant's schedule. The same statements typically support the contractor's surety program. A surety sets bond capacity from the contractor's financial condition, work on hand and experience, so moving into the district's over-$10 million tier can be a good point to look at bonding capacity alongside prequalification. Bond approval remains subject to underwriting and the surety's terms. State bond rules that apply to California public works generally are explained in [California public works bond requirements](https://mycontractorsinsurancequote.com/construction-surety-bonds/public-works-bond-requirements/california). ## DIR Registration, the 3 Percent DVBE Requirement and Bidding Logistics The district's construction contracts page states that it may use only Department of Industrial Relations registered contractors and subcontractors on public works. State law adds that no contractor or subcontractor may be listed on a public works bid unless registered, and that certified payroll records go electronically to the Labor Commissioner. The same page states that the district requires a mandatory 3 percent DVBE participation on all publicly bid construction contracts. It also describes mandatory site walks for prime bidders, bidding through PlanetBids and board award typically three to four weeks after bid opening. The Contracts Management team handles oversight of insurance documents, but the page does not list insurance limits or wording. Program questions for firms that build for public owners are discussed in [public works contractor insurance and bonds](https://mycontractorsinsurancequote.com/who-we-serve/general-contractors/public-works-contractors). ## The Project Stabilization Agreement on Proposition S and Z Work The district's board approved a Project Stabilization Agreement on July 28, 2009, effective October 27, 2009. The district's page describes the parties as the district, the San Diego Building and Construction Trades Council and the Southwest Regional Council of Carpenters. The agreement reaches Propositions S and Z work equal to or exceeding $1 million in value, measured by the estimate before the project is submitted to DSA. Contractors on that work must employ apprentices trained in the joint labor-management apprenticeship programs, and the district notes that the apprenticeship requirement was upheld on appeal in AGC v. SDUSD, decided May 18, 2011. The page does not mention Measures YY or U, so whether the agreement applies to work funded by those later measures should be confirmed in the solicitation or with the district before a firm prices its labor. ## Bond Measures S, Z, YY and U The district's Facilities Bond Program page lists four general obligation bond measures approved by voters: - Proposition S (2008): $2.1 billion, approved by 68.71 percent of voters. - Proposition Z (2012): $2.8 billion, approved by 61.8 percent. - Measure YY (2018): $3.4 billion, approved by 65.08 percent. - Measure U (2022): $3.2 billion, approved by 65.28 percent. Regional coverage and bond topics for builders across the county are gathered under [San Diego construction insurance and bonds](https://mycontractorsinsurancequote.com/california/metros/san-diego). ## Bid Security, Bonds, Insurance, Retention and Warranty We did not verify the district's bid security amount, payment and performance bond terms, insurance limits, additional insured wording, retention or warranty period. We also found no owner-controlled insurance program described on the district pages we read. The district posts current solicitations in its planroom, where specifications and advertisement documents require a login, so those terms come from each solicitation's documents and can differ from one project to the next. Before pricing, a bidder typically pulls the instructions to bidders, general conditions and any supplementary conditions for the project and checks them against its surety capacity and policy forms. A surety bond is a credit product, not an insurance policy. How a liability or property policy responds to a loss turns on its wording, subject to underwriting and the terms of the bonds and policies issued. ## Before You Ask for a Quote ### What to Gather - The firm's current district prequalification approval and its expiration date - Audited financial statements for projects over $10 million, or reviewed statements below that - Prime contractor project references of $1 million or more - DIR registration numbers for the firm and each listed subcontractor - DVBE certifications for planned subcontractors and suppliers - The solicitation's instructions to bidders, general conditions and supplementary conditions ### What to Ask the Insurer or Surety - Is the project lease-leaseback or design-bid-build, and is it estimated over $1 million? - Does the Project Stabilization Agreement apply to this project's funding source? - What bid security, bond, retention and warranty terms does this solicitation set? - What insurance limits and additional insured wording do the contract documents require? - Are our MEP subcontractors prequalified before the deadline for this bid? - Will the site walk date and prequalification deadline fit our bid schedule? ## Broker Notes **Quick Answer:** San Diego Unified requires prequalification for primes over $1 million and for MEP subcontractors on design-bid-build work over $1 million, audited financials over $10 million, DIR registration, 3 percent DVBE participation and, on Proposition S and Z work of $1 million or more, its Project Stabilization Agreement. **Common Mistake:** Assuming City of San Diego prequalification or contract terms carry over to the school district. The two are separate public owners with separate approvals and contracts. **Broker Perspective:** The jump from reviewed to audited statements at $10 million is often the moment a contractor's surety relationship and prequalification have to be planned together, since both rely on the same financials. **Coverage Impact:** The district pages we read publish no insurance limits, so the policy terms that matter come from each solicitation's documents and can vary by project. ## Questions Buyers Ask ### Which San Diego Unified projects require contractor prequalification? The district requires prime contractors to prequalify for lease-leaseback and design-bid-build projects over $1 million, and MEP subcontractors to prequalify for design-bid-build projects estimated over $1 million. Approval expires one year from the date of approval. ### Does San Diego Unified require audited financial statements? Its prequalification page calls for audited financials on projects over $10 million and reviewed financial statements on projects under $10 million. Larger bids typically need the audit planned well before the prequalification deadline. ### Does the San Diego Unified Project Stabilization Agreement apply to Measure U work? The district's page describes the agreement as reaching Proposition S and Z work of $1 million or more and does not mention Measures YY or U. Confirm whether it applies in the solicitation or with the district. ### How large is San Diego Unified's school bond program? The district lists four voter-approved general obligation measures: Proposition S at $2.1 billion (2008), Proposition Z at $2.8 billion (2012), Measure YY at $3.4 billion (2018) and Measure U at $3.2 billion (2022), about $11.5 billion combined. ### Is the school district the same owner as the City of San Diego? No. San Diego Unified School District and the City of San Diego are separate public agencies, each with its own prequalification, bid documents and contract terms, so approvals and requirements from one do not transfer to the other. ## Official Sources 1. [Contractor Prequalification](https://www.sandiegounified.org/departments/facilities_planning_and_construction/doing_business_with_facilities_planning/contractor_prequalifications), San Diego Unified School District, Facilities Planning and Construction. Prequalification for primes on lease-leaseback and design-bid-build projects over $1 million and MEP subcontractors on design-bid-build projects over $1 million; five or 10 business day submission; one-year expiration; audited financials over $10 million, reviewed under; references of $1 million or more Verified 2026-10-26. 2. [Construction Contracts Information](https://www.sandiegounified.org/departments/facilities_planning_and_construction/doing_business_with_facilities_planning/construction_contracts_information), San Diego Unified School District, Facilities Planning and Construction. Prequalification over $1 million; DIR-registered contractors only; mandatory 3 percent DVBE participation; mandatory site walks; PlanetBids; board award timing; Contracts Management insurance document oversight Verified 2026-10-26. 3. [Project Stabilization Agreement](https://www.sandiegounified.org/departments/facilities_planning_and_construction/doing_business_with_facilities_planning/project_stabilization_agreement), San Diego Unified School District, Facilities Planning and Construction. Board approval July 28, 2009; effective October 27, 2009; parties; Proposition S and Z work of $1 million or more; apprenticeship requirement upheld in AGC v. SDUSD (May 18, 2011) Verified 2026-10-26. 4. [Facilities Bond Program](https://www.sandiegounified.org/cms/one.aspx?pageId=28007591), San Diego Unified School District. Proposition S, Proposition Z, Measure YY and Measure U amounts, years and approval percentages Verified 2026-10-26. 5. [San Diego Unified Planroom](https://www.sandiegousdplans.com/), San Diego Unified School District. Current solicitations; specifications and advertisement documents require a login Verified 2026-10-26. 6. [SB 854 public works fact page](https://www.dir.ca.gov/public-works/sb854.html), California Department of Industrial Relations. DIR registration required to be listed on a public works bid; electronic certified payroll to the Labor Commissioner Verified 2026-10-26. 7. [IR A-24, Construction Phase Duties of the School District, Contractor, and Design Professional (rev 09/11/19)](https://www.dgs.ca.gov/-/media/Divisions/DSA/Publications/interpretations_of_regs/IR_A-24_rev09-11-19.pdf), Department of General Services, Division of the State Architect. DSA project inspector and contractor duties, including DSA 156 notices and the DSA 6-C verified report Verified 2026-10-26. 8. [AB 1565 (2012), chaptered text, Chapter 808](https://leginfo.ca.gov/pub/11-12/bill/asm/ab_1551-1600/ab_1565_bill_20120930_chaptered.html), California Legislature. PCC 20111.6 as enacted in 2012: prequalification of bidders and MEP subcontractors on state-funded school projects of $1,000,000 or more Verified 2026-10-26. ## Related Decisions - [school construction insurance and bonds](https://mycontractorsinsurancequote.com/projects/school-construction) - [California DSA and school district requirements](https://mycontractorsinsurancequote.com/projects/school-construction/california-dsa-and-school-districts) - [City of San Diego contract requirements](https://mycontractorsinsurancequote.com/construction-surety-bonds/public-agency-contractor-requirements/city-of-san-diego) - [San Diego construction insurance](https://mycontractorsinsurancequote.com/california/metros/san-diego) - [California public works bonds](https://mycontractorsinsurancequote.com/construction-surety-bonds/public-works-bond-requirements/california) - [public works contractors](https://mycontractorsinsurancequote.com/who-we-serve/general-contractors/public-works-contractors) --- Start a quote request: https://mycontractorsinsurancequote.com/get-a-quote · Call 844-978-7283 Contract and insurance reviews are a courtesy service that may be available at times, depending on our workload and on the size, timing and complexity of the project. A review is not guaranteed and is limited to insurance considerations. It is not legal advice and is not a substitute for advice from your own legal counsel, which you may need before signing a contract or obtaining coverage. Insurance and surety services are provided through Gleason Insurance Brokers, LLC. Site information is educational and does not constitute legal advice, a binder, an offer of coverage, a guarantee of eligibility or confirmation of policy terms. Insurance conditions are governed by actual issued policies; surety rights and obligations are governed by bond and indemnity documents.