New Public Works Contractor Registration Effective March 1, 2015

Here’s a reminder to our construction clients that beginning March 1, 2015, all contractors and subcontractors must be registered with the Department of Industrial Relations in order be qualified to bid on or be listed on a bid for a public works job pursuant to new Labor Code sections 1725.5 and 1771.1. This registration requirement also applies to all contractors and subcontractors performing work on public works jobs awarded after April 1, 2015.
Contractors and subcontractors can register online here. The registration process requires contractors and subcontractors to pay a $300.00 fee and certify that they meet the following minimum qualifications:

• Maintenance of workers’ compensation coverage.
• Licensed with the Contractors State License Board, if applicable to trade.
• No delinquent unpaid wage or penalty assessments owed to any employee or enforcement agency.
• Not under federal or state debarment.
• No prior violation of the registration requirement; provided, however, one violation in the preceding 12 months can be cured with a penalty payment of $2,000.

Under the new law, a prime contractor’s bid may not be accepted nor any contract entered without proof of the prime contractor’s registration to perform public work.
Prime contractors are also required to make sure that all subcontractors listed on their bids or with whom they enter a subcontract are registered. Contractors can check to see if another contractor or subcontractor is registered online here.
If subcontractors are not registered as required by law and are inadvertently listed on a bid, they may still be able to work on the project if they are: (1) registered before the bid opening; or (2) register and pay a penalty registration fee of $2000 within 24 hours after bid opening.
More information at http://www.dir.ca.gov/public-works/publicworks.html