ASAC Members take note: Our Assembly Bill 1705 passed just the Assembly and now goes to the Senate for a hearing in June. The bill closes a loophole in a recent law that allows public entities to declare any construction project as "substantially complex." If the agency does that it can then avoid (evade) the 5% cap on retention that we helped secure last year in SB 293. And that's exactly what some school districts did.
AB 1705 requires the agencies to explain what makes a project "SC" and to also notify bidders that in so doing, the 5% cap is removed and more money may be retained. ASAC is very pleased to have CalSMACNA and NECA as co-sponsors to the bill which is supported by several other subcontractor organizations.
AB 2471 deals with change order payments and just passed its first hearing where ASAC testified in support; it now goes to the Appropriations Committee for a hearing. It requires state and local public entities to promptly issue change orders when extra work is required of the contractor or subcontractor.
The bill says if a public entity fails to issue a change order within 60 days the original contractor may bill for this work that has already been performed, and the public entity shall be liable for that work. And, interest from the time the amount was due would accrue at 10%, however that rate might be reduced to the current prevailing rate in an upcoming amendment to the bill. Numerous trades support the bill while numerous public entities oppose it citing difficulties in getting paperwork and payments processed in such a short time period.
Lastly, the CA State License Board (CSLB) is proposing these changes in law:
1. Limit advertisements placed by unlicensed contractors. The law currently requires that a person declare in their advertisement that "he or she is not licensed." CSLB is proposing that unlicensed contractors only be allowed to advertise for work under $500.
2. Currently, law mandates CSLB to "initiate disciplinary action against the licensee within 30 days of notification" by the Division of Labor Standards Enforcement (DLSE). The proposed amendment: (A) Removes the mandate in order to give CSLB the flexibility to pursue only those cases where the misconduct is egregious and/or the risk to public harm is great, and
(B) Removes the Section's unachievable requirement that disciplinary action be initiated "within 30 days of notification." Factors outside of CSLB's control make compliance with this deadline impossible, even under the best of circumstances.
This is very important...to you.
When Senate Bill 293 passed last year subcontractors believed that they finally achieved a 5% cap on retention in public projects. However, a clause in the bill allows the cap to be exceeded if the project is "substantially complex". Since then we've seen simple projects being declared substantially complex. In effect, public entities are evading the law. Worse, subcontractors are being taken advantage of...again!
We need your help to stop this abuse.
Legislators are convinced of a need only when confronted with actual proof of the abuse. We need your help to prove the problem exists. Gathering hundreds of examples will help legislators move toward retaining the 5% cap.
Please fax or scan and email copies of all bidding docs that declare a project to be "SC" to ASAC immediately. This is your opportunity to "citizen lobby" the issue. YOU hold the key!
No Proof = No 5% Cap!
ASAC represents its Members, and together we make change happen.
FAX TO 530-662-2865
OR
SCAN AND E-MAIL TO
[email protected]
AB 2471 deals with change order payments and just passed its first hearing where ASAC testified in support; it now goes to the Appropriations Committee for a hearing. It requires state and local public entities to promptly issue change orders when extra work is required of the contractor or subcontractor.
The bill says if a public entity fails to issue a change order within 60 days the original contractor may bill for this work that has already been performed, and the public entity shall be liable for that work. And, interest from the time the amount was due would accrue at 10%, however that rate might be reduced to the current prevailing rate in an upcoming amendment to the bill. Numerous trades support the bill while numerous public entities oppose it citing difficulties in getting paperwork and payments processed in such a short time period.
Lastly, the CA State License Board (CSLB) is proposing these changes in law:
1. Limit advertisements placed by unlicensed contractors. The law currently requires that a person declare in their advertisement that "he or she is not licensed." CSLB is proposing that unlicensed contractors only be allowed to advertise for work under $500.
2. Currently, law mandates CSLB to "initiate disciplinary action against the licensee within 30 days of notification" by the Division of Labor Standards Enforcement (DLSE). The proposed amendment: (A) Removes the mandate in order to give CSLB the flexibility to pursue only those cases where the misconduct is egregious and/or the risk to public harm is great, and
(B) Removes the Section's unachievable requirement that disciplinary action be initiated "within 30 days of notification." Factors outside of CSLB's control make compliance with this deadline impossible, even under the best of circumstances.
This is very important...to you.
When Senate Bill 293 passed last year subcontractors believed that they finally achieved a 5% cap on retention in public projects. However, a clause in the bill allows the cap to be exceeded if the project is "substantially complex". Since then we've seen simple projects being declared substantially complex. In effect, public entities are evading the law. Worse, subcontractors are being taken advantage of...again!
We need your help to stop this abuse.
Legislators are convinced of a need only when confronted with actual proof of the abuse. We need your help to prove the problem exists. Gathering hundreds of examples will help legislators move toward retaining the 5% cap.
Please fax or scan and email copies of all bidding docs that declare a project to be "SC" to ASAC immediately. This is your opportunity to "citizen lobby" the issue. YOU hold the key!
No Proof = No 5% Cap!
ASAC represents its Members, and together we make change happen.
FAX TO 530-662-2865
OR
SCAN AND E-MAIL TO
[email protected]
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