New California Construction Law Registration Requirements
If you work on California Public Works Projects, being a Contractor in the Golden State just got a whole lot tougher.
Orange County Construction Lawyer
New California construction law means tighter registration requirements for contractors who work on publicly funded projects.
Last month, the California State Legislature imposed a new law that forces all California contractors and subcontractors involved with public works projects to register with the state and pay a non-refundable $300 fee. Effective July 1, 2014, contracts with unregistered contractors who violate the amendment to California’s prevailing wage laws are “subject to cancellation.”
Who Will Get Hit The Hardest By The New Contractor Requirements?
The new California Construction Law applies only to construction workers in the public sector, contractors and subcontractors involved in the maintenance and construction of state and local public works projects financed by the government.
Irvine Construction Law Firm Private residential or commercial contracting will not require a Public Works Contractor License. However, contractors or subcontractor who are involved in the maintenance or construction of government funded infrastructure projects such as roads, bridges, water and energy systems as well as public facilities like ports, schools, railways, etc. will be affected.
Although, a registered prime contractor may list an unregistered subcontractor on a bid if the consent of the public entity is obtained.
How the New Construction Law Registration Process Will Affect California Contractors Working on Public Construction Projects
The new registration process means that in order to work on a public projects contractors must register AND meet these requirements:
Government Construction License• Provide workers’ compensation coverage to their employees
• Hold a valid Contractors State License Board license
• Have no delinquent unpaid wages or compensation owed to any employee
• Pay an annual renewal fee by July 1 of each year
• Not be subject to federal or state debarment or suspension
Government Contractors who meet the above requirements must also complete the Department of Industrial Relations’ Public Works Contractor Online Registration Form and pay the non-refundable fee of $300.
In an effort to enforce the new contractor registration requirements and ensure that all government funded projects only employ registered contractors and subcontractors. The Department of Industrial Relations (DIR) will post a database of registered contractors and subcontractors on its website.
