DIR Public Works Contract Registration Penalty Increase Beginning January 1, 2016
The Department of Industrial Relations (DIR) announced on December 8, 2015 that a mandatory renewal deadline is rapidly approaching for contractors who bid or work on public works projects in California. Contractors whose public works contractor registration expired June 30, 2015, and have ongoing public works projects or plan to bid on new ones, are required to pay a $300 renewal fee before January 1, 2016 or face an additional $2,000 late penalty after that date. If contractors were registered last year and have not bid nor worked on any public works projects on or after July 1, 2015, they can renew for this fiscal year without incurring a penalty.
Since April 1, 2015, as a result of Senate Bill 854, all contractors have been required to register with DIR to be awarded a public works contract, even if the project did not go out to bid. “Contractor registration ensures that only those contractors who play by the rules can bid and work on public works projects,” stated Julie A. Su, State Labor Commissioner. The required annual registration fee of $300 is used to fund such activities as DIR’s compliance monitoring and enforcement, enforcement appeal hearings, and prevailing wage and public works coverage determinations.
Contractors can check the active registration search tool to locate and confirm their registration. If the registration does not appear, it may have expired or the company was never registered. The DIR maintains a listing of registered contractors and subcontractors on its website to assist awarding bodies who must confirm this registration before considering a bid or awarding a contract, and for contractors who must confirm that their bid team members are registered.