Are You On The List?: Mandatory Registration For Public Works Contracts
By Kathlynn Smith, Esq.
As the year comes to a close, the possibilities for next year seem limitless. December is the perfect time to reflect on the lessons of the past and make plans for the future. And with all indicators showing strong growth in construction, it is especially important to know how to maximize and seize those limitless opportunities as they come.
For all those involved in public works, one (not so) small bill from last session can have an enormous impact on your bidding opportunities. Senate Bill 854 added and revised several section to the Labor Code. Most notably, Labor Code section 1725.5 was added, which requires all contractors and subcontractors to register with the Department of Industrial Relations (DIR) to be eligible to work on public works projects. With only limited exceptions, a failure to register could be grounds for a bid to be found nonresponsive, a successful bid protest, or a substitution. The registration requirement applies to bid proposals submitted on or after March 1, 2015 and public works contracts awarded on or after April 1, 2015.
To learn more about the DIR registration requirements or to register your company, visit the DIR’s website at: http://www.dir.ca.gov/Public-Works/PublicWorks.html. Register today so you can seize those opportunities tomorrow.
Kathlynn Smith is a Shareholder with Hunt Ortmann, a leader in California construction law. If you have any questions about this bulletin or contractor license law, please contact her at email@example.com.