In recent newsletters we reported that the Governor's 2014-15 Budget included a proposal to consolidate all public works and prevailing wage enforcement under a single unit, with that unit supported by a new registration fee on contractors working on public projects.
That fee becomes a reality on July 1, 2014. All contractors and subcontractors that intend to bid or work on public projects will be required to pay a non-refundable annual fee set initially at $300. The fee may be adjusted (but not more than annually) so that it generates adequate funds to cover program costs which are currently $11.4M.
That fee becomes a reality on July 1, 2014. All contractors and subcontractors that intend to bid or work on public projects will be required to pay a non-refundable annual fee set initially at $300. The fee may be adjusted (but not more than annually) so that it generates adequate funds to cover program costs which are currently $11.4M.
The budget proposal as approved will restructure funding for the administration and enforcement of the Department of Industrial Relations (DIR) prevailing wage requirements replacing current funding sources with the public works contractor registration fee. Gone are the Compliance Monitoring Unit (CMU) fees -- billed in arrears to awarding bodies for services provided on CMU projects -- and a portion of the LECF (Labor Enforcement and Compliance Fund) assessment on your Workers' Compensation policy.
Essentials of the contractor registration program:
Contractors will apply and pay the fee online by credit card and must meet minimum qualifications to be registered as eligible to work on public works:
Must have Workers' Compensation coverage and only use registered public works subcontractors.
Must have CSLB contractor license.
Must have no delinquent unpaid wage or penalty assessments due to any employee or agency.
Not under debarment.
Not in prior violation of this registration requirement once it becomes effective. However, first time violators will be able to avoid 12 month disqualification by paying an additional penalty.
The registration fee is not related to any one project. Rather, it is more like a driver's license that entitles the registrant to bid on and perform public works.
DIR will post a list of registered contractors and subcontractors on its website so that awarding bodies and contractors will be able to comply with the requirement to only use registered contractors and subcontractors.
Key dates of the contractor registration program:
July 1, 2014 - Registrations will begin after this date. We will bring you details on where and how to register as they become available.
March 1, 2015 - Requirement to list only registered contractors and subcontractors on bids becomes effective.
April 1, 2015 - Requirement to use only registered contractors and subcontractors on public works projects applies to all projects awarded after this date.
Protections have been built in to address a variety of scenarios including private jobs later determined to be public work, inadvertent listing of unregistered subcontractors on a bid, contracts with unregistered contractors and subcontractors, replacement of unregistered contractors and subcontractors, and lapsed contractor registrations.
For more details on the remedies to address these situations and the contractor registration program, please view the DIR Fact Sheet. (http://www.dir.ca.gov/dlse/PublicWorks/NewPublicWorksLegistlationFactSheet-2014-05-23.pdf)
+++++++++++++++++++++++++
This article was reprinted, with permission, from the June 30, 2014 newsletter of the Mason Contractors Association of California. MCAC is a member of the ASAC Government Relations Committee.
Mason Contractors Association of California, Inc.
7844 Madison Avenue, Ste 140 - Fair Oaks, California 95628-3595
Phone (916) 966-7666 - Fax (916) 966-1411
www.mca-ca.org
Essentials of the contractor registration program:
Contractors will apply and pay the fee online by credit card and must meet minimum qualifications to be registered as eligible to work on public works:
Must have Workers' Compensation coverage and only use registered public works subcontractors.
Must have CSLB contractor license.
Must have no delinquent unpaid wage or penalty assessments due to any employee or agency.
Not under debarment.
Not in prior violation of this registration requirement once it becomes effective. However, first time violators will be able to avoid 12 month disqualification by paying an additional penalty.
The registration fee is not related to any one project. Rather, it is more like a driver's license that entitles the registrant to bid on and perform public works.
DIR will post a list of registered contractors and subcontractors on its website so that awarding bodies and contractors will be able to comply with the requirement to only use registered contractors and subcontractors.
Key dates of the contractor registration program:
July 1, 2014 - Registrations will begin after this date. We will bring you details on where and how to register as they become available.
March 1, 2015 - Requirement to list only registered contractors and subcontractors on bids becomes effective.
April 1, 2015 - Requirement to use only registered contractors and subcontractors on public works projects applies to all projects awarded after this date.
Protections have been built in to address a variety of scenarios including private jobs later determined to be public work, inadvertent listing of unregistered subcontractors on a bid, contracts with unregistered contractors and subcontractors, replacement of unregistered contractors and subcontractors, and lapsed contractor registrations.
For more details on the remedies to address these situations and the contractor registration program, please view the DIR Fact Sheet. (http://www.dir.ca.gov/dlse/PublicWorks/NewPublicWorksLegistlationFactSheet-2014-05-23.pdf)
+++++++++++++++++++++++++
This article was reprinted, with permission, from the June 30, 2014 newsletter of the Mason Contractors Association of California. MCAC is a member of the ASAC Government Relations Committee.
Mason Contractors Association of California, Inc.
7844 Madison Avenue, Ste 140 - Fair Oaks, California 95628-3595
Phone (916) 966-7666 - Fax (916) 966-1411
www.mca-ca.org
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