Community College Facility Coalition
Citrus Community College District
December 2, 2014
SB 854
DIR CONTRACTOR REGISTRATION
DLSE PREVAILING WAGE RATE
ENFORCEMENT & MONITORING
Public Agency Law Group
Attorneys at Law
T: 310-640-0800
F: 310-640-0818
Sherman Wong
swong@palg.net
KEY CHANGES
DIR REGISTRATION
Labor Code §1771.3(b)
Moneys in the State Public Works
Labor Code §1771.4(a)(3)
Enforcement Fund shall be used only for
(3) Labor
Each Codecontractor
and
Requiredpurposes:
to be§1771.4(a)(4)
“qualified” to:
the• following
subcontractor
shallworks;
furnish
department
shallthe
(i) The
bid public
(ii)
be
(1) The
reasonable
costs of administering
records
specified
in
Section
1776
undertake
those
activities
it
subcontractor;
and (iii) and
the listed
registration
of contractors
directly
to necessary
the
Labor
deems public
to work
perform
works
Labor subcontractors
Code
§1722.1
to perform
public
Commissioner,
the contractors
following
and
enforce
•purposes
Allmonitor
works
For the
of thisin
chapter,
“contractor”
pursuant
topublic
Section
1725.5.
manner:
compliance
with prevailing
and
subcontractors
and (2)
“subcontractor”
a contractor,
The
costs
andinclude
obligations
associated
(A)
At
least
monthly
or
more
wage
requirements.
•
Registration
fees
to
State
subcontractor,
licensee, officer,
or
with the administration
and agent,
enforcement
frequently
if specified
in
Public
Worksacting
Enforcement
Fund
representative
thereof,
in that
capacity,
of the requirements
of this
chapter
by the
the
contract
with
the
when working
on public
works Relations.
pursuant to this
Department
of Industrial
awarding
body.
article(3)
and
2 (commencing
with Section
TheArticle
monitoring
and enforcement
of any
(B)
In
a
format
prescribed
by
1770).requirement of this code by the Labor
the Labor Commissioner.
Commissioner on a public works project or
in connection with the performance of
public work as defined pursuant to this
chapter.
DLSE PWR
MONITORING &
Labor Code §1725.5
ENFORCEMENT
A contractor
shall be registered
pursuant to this section to be qualified
to bid on, be listed in a bid proposal,
subject
to the
requirements
• CPR
submittal
to DLSEof Section
Labor Code §1725.5
4104
of themonitors
Public Contract
Code, or
• DLSE
and enforces
For the purposes of this section
engage
in the
performance
PWR;
all public
works of any
“contractor” includes a subcontractor as
public
work contract
• Eliminates
DIR CMU Labor
Labor
Code
§1725.5(b)
defined by Section 1722.1.
Compliance
Fees received
pursuant to this section
• be
DIRdeposited
registration
shall
in the State Public
DLSE
Worksadministrative
Enforcement costs
Fund &established
PWR 1771.3
activitiesand
funded
by Section
shallby
beDIR
used
registration
feesspecified in that
only for
the purposes
section.
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
ACRONYMS DEFINED
DIR (Department of Industrial Relations)
DLSE (Division of Labor Standards Enforcement)
Department of
Industrial Relations
Governor
Labor & Workforce
Development Agency
Other Executive Agencies
& Departments
Employment
Development
Department
Public Employment
Relations Board
Other Sub-Agencies
PWR (Prevailing Wage Rates)
CPR (Certified Payroll Records)
CMU (DIR Compliance Monitoring Unit)
LCP (Labor Compliance Program)
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
Division of
Occupational Safety
& Health
Division of Workers
Compensation
Division of
Apprenticeship
Standards
Division of Labor
Standards
Enforcement
Labor Commissioner’s Office
The Labor Commissioner’s
Office, also known as the
Division of Labor Standard
Enforcement (DLSE), was
established to adjudicate
wage claims, investigate
discrimination and public
works complaints, and
enforce the Labor Code
statutes and Industrial
Welfare
Commission
orders.
SB 854 IMPLEMENTATION TIMELINE
June, 2014
SB 854
Signed
July 1, 2014
Jan. 1, 2015
Mar. 1, 2015
Apr. 1, 2015
Jan. 1, 2016
DIR Contractor Registration Begins
DIR CMU Projects Convert to DLSE PWR Monitoring/Enforcement
District Notice to DIR of Public Works Contract Award
Calls for Bids and Contract Documents Incorporate
Notice of DLSE Monitoring and CPR Submittal to DLSE
DIR Contractor Registration Required
(Bids submitted after March 1)
DIR Contractor Registration Required
Contractors Submit CPRs to DLSE
(Contracts Awarded after April 1)
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
Contractors Submit CPRs
to DLSE for all Public
Works
SUMMARY
Public Contract Code §4107(a)
A prime contractor whose bid is accepted may not:
(a) Substitute a person as •subcontractor
in place
of the subcontractor
listed in the original bid, except
DIR contractor
registration
administration
that the awarding authority,
its duly authorized
officer,
may, except
as otherwise provided in
• DIR or
maintains
registered
contractors
database
Labor
Code
§1771.1(d)
Section 4107.5, consent to the substitution of another person as a subcontractor in any of the
• Contractors submit CPRs
to DLSE
DIR/Labor
Failure
by a subcontractor to be
following
situations:
Labor
Code §1773.3.
Commissioner
• DLSE monitors/enforces
PWR
(1) When the subcontractor
listed in the bid,registered
after
having to
had perform
a reasonable
opportunity
public
workto do
as
•
DIR
CMU
Labor
Compliance
Program
eliminated
so,
fails
or
refuses
to
execute
a
written
contract
for
the
scope
of
work
specified
in
the
(a)(1) An awarding agency shall provide notice to the
Department
Industrial Relations
required
byof subdivision
(a) ofshall be
subcontractor’
s•All
bid
and at
specified of
in the
bid, days
when of
that written
any public
works contract
subject
tothe
theprice
requirements
this subcontractor’s
chapter, within five
public
works
projects
grounds
under
Section
4107
of
the
Public
contract, based upon the general terms, conditions, plans, and specifications for
the
the award.
Contract
for by
the
contractor,
with
projectshall
involved
or the terms
of that subcontractor’s
written
bid,
is presented
to the
the
(2) The notice
be transmitted
electronically
in
a formatCode
specified
the
department
by
theofRegistration
prime
contractor.anyconsent
and shallsubcontractor
include the name
the contractor,
subcontractor
listed awarding
on the successful
of the
authority, to
• DIR
(2)
When
the
listed
subcontractor
becomes
insolvent
or
the
subject
of
an
order
for relief in
bid,
the bid and
award
dates,
the contract amount, the estimated start and
Contractors
& contract
• DSLE
CPR
submittal
substitute
a
subcontractor
who is
Laborjob
Code
bankruptcy.
completion
dates,
site §1771.1(b)
location, and any additional information the department
Subcontractors
• subcontractor
Public Contract
Code
§4107
Substitution
of subcontract.
Non-Registered
registered
to
public work
(3) When
theinlisted
fails
or refuses
toof
perform
his orperform
her
specifies
that aids
the
and
enforcement
this
chapter.
“…a
bidadministration
shall
not
be
accepted
nor
any
(4) When the listedSubcontractor
subcontractor fails or refuses
to meet
bond requirements
of theof
prime
pursuant
to the
Section
1725.5 in place
the
contract
or
subcontract
entered
into
as settoforth
(b) In lieu contractor
of responding
anyin Section
specific 4108.
requestunregistered
for contract subcontractor.
award information, the
without
proof
of
the
contractor
or
(5)
When
the
prime
contractor
demonstrates
to
the
awarding
authority,
duly authorized
department may make the information provided by awarding bodies pursuant
to or
thisitssection
subjecton
to its
theInternet
further
provisions
set forth in Section
4107.5, that the name of the
available forofficer,
public
review
Web
site.
subcontractor’s
current
registration
to
subcontractor was
listed as
theof
result
of an
inadvertent
error.
Notify
DIR
public
works
contract
award
perform • the
public
work
pursuant
to clerical
(6) When the listed subcontractor is not licensed pursuant to the Contractors License Law.
• Require DLSE CPR submittal
1725.5.”
(7)Owners
WhenSection
the awarding
authority, or its duly authorized officer, determines that the work
Public
•
Establish
DLSE authority
to monitor
and enforce
performed by the listed subcontractor
is substantially
unsatisfactory
and PWR
not in substantial
• Establish
accordance with
the plans DIR
and registration
specifications,requirements
or that the subcontractor is substantially
delaying or disrupting the progress of the work.
(8) When the listed subcontractor is ineligible to work on a public works project pursuant to
PublicSection
Agency Law1777.1
Group or 1777.7 of the Labor Code.
Attorneys At Law
T: (9)
310-640-0800
/ F: the
310-640-0818
When
awarding authority determines that a listed subcontractor is not a responsible
swong@palg.net
contractor.
TIMELINE SUMMARY
• July 1, 2014
• DIR contractor registration begins
• Existing DIR CMU projects convert to DLSE PWR monitoring and CPR submittal
• District notice to DIR of public works contract award
• Contracts awarded after January 1, 2015
Key Dates
• Call For Bids and Contract Documents establish:
• DLSE CPR submittal
• DLSE PWR monitoring and enforcement
• Bids submitted after March 1, 2015 and contracts awarded after April
1, 2015
• Contractor/Subcontractors subject to DIR Registration requirements
• DLSE CPR submittal
• DLSE PWR monitoring and enforcement
• January 1, 2016
• DLSE CPR submittal for all new and on-going public works projects
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
CONTRACTS AFFECTED BY DIR
REGISTRATION REQUIREMENTS
§16000. Definitions.
Labor Code §1720.3

Construction
(capital/modernization)
California
Code of Regulations,
Title 8.
“public
works”
also
means
the hauling of
Maintenance.
Includes:
§16001
Public
Works
Subject
to
Prevailing
Wage
Law.
Design-Bid-Build
Projects
and
Projects
completed
by
Labor
Code
§1720
refuseContract
from a public
works
site
to
an
outside
(1)Public
Routine,
recurring
and
usual
work
for
the
preservation,
protection
and
keeping
of
any
publicly
Code
§22002(d)(4)
(a) General Coverage. State prevailing wage rates apply to all public
Public
works
means:(design-build,
disposal
location
alternative
delivery
mechanisms
multiple-prime,
owned
or
publicly
operated
facility
(plant,
building,
structure, ground
facility,
utility system
or any
(4)
Landscape
including
mowing,
pruning,
planting,
works
contractsmaintenance,
as set forth
in Labor
Codewatering,
Sections trimming,
1720, 1720.2,
(a)(5) “laying
carpet
in a systems.
publiccondition for which it has
real
property) for
its intended
purposes
a safeofand
continually
usable
replacement
of plants,
and etc.)
servicing
ofin irrigation
and
sprinkler
lease-leaseback,
1720.3,
1720.4,
and
1771.
been“hauling
designed,ofimproved,
constructed,
repaired.
building
under
contract”
refuse” includes,
butaltered
isdone
not or
limited
 Maintenance
& Repairs
(above
and
below
bid threshold )
Labor
Code
§1720(a)
to, hauling soil, sand,
gravel, rocks,
concrete,
Labor
Code
§1720(a)(1)
§1720.6
(2) §16000.
Carpentry,Definitions.
plumbing,
glazing,
[touchup
painting,]
and
other
craft work
designed to
(a)(1)
“installation”
includes,
but
is includes
“construction,
alteration,
demolition,
asphalt, electrical,
excavation
materials,
and

Carpeting
“construction”
“public
work”
also
means
any
work
Publicthe
Works.
Sections
1720,operated
1720.2,facility
1720.3,
of the
preserve
publiclySee
owned
or publicly
in aand
safe,1771
efficient
and continuously
not limitedof to,
the
assembly
and work
installation,
or repair
done under
construction
debris.
refuse”
performed
construction,
during
alteration,
theother
demolition,
design
and on

Fixed
andfor
free-standing
“modular
office
systems”
usable
condition
which itThe
was“hauling
intended,
including
repairs,
cleaning
and
operations
Labor
Code.
disassembly
ofcontract
freestanding
and
paid
for
in as
whole
or of
in
shall and
not other
include
the hauling
of recyclable
preconstruction
installation,
or and
repair
phases
work
done
machinery
equipment
permanently
attached
to the
building
or
realty
fixtures.
 Inspection/Survey
Services
affixed modularpart
office
outsystems”
ofprivate
public
funds”
metals…”
construction,
under
including,
contract
butwhen
not limited
the
§16001(f)

Energy
Conservation
(Government
Code
§4217
and
39)
Exception:
1: Janitorial
or custodial services
of a routine,
recurring
or usual
nature
excluded.
to,
inspection
conditions
andsubject
exist:
landisProp
Maintenance. Public works contracts for following
maintenance
are
tosurveying
Exception: 2: Protection of the sort provided by guards,
orisother
security forces
is
work
(a) watchmen,
The1771
workof
performed
in

Project
Waste
Hauling
(soils,
concrete,
asphalt,
construction
prevailing
wage
rate
payment
as
set
forth
in
Section
the
Labor
excluded.
connection with the construction
Code.
debris)
or maintenance of renewable
(3) Landscape maintenance. See Public Contract Code Section 21002.
 Note:
Uniform
Public Construction Cost Accounting
energy generating capacity or
See Article 1 for definition of term “maintenance.”
energy efficiency
improvements
Exception: Landscape maintenance work by “sheltered workshops”
is excluded.
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
CONTRACTOR DIR REGISTRATION;
(a) Whenever a contractor or subcontractor performing a public works
project pursuant
to this chapter
is found by the
LABOR
CODE
§1725.5
Labor Commissioner to be in violation of this chapter with intent to defraud...is ineligible for a period of not less
Labor Code §1777.1. DLSE Debarment
than one year or more than three years to do either of the following:
(1) Bid on or be awarded a contract for a public works project.
Labor Code §1725.5(a)(1)
(2) Perform work as a subcontractor on a public works project.
Beginning
July 1,
2014, register
witha public
the Department
of Industrial
(b) Whenever
a contractor
or subcontractor
performing
works project pursuant
to this chapter is found by the
Labor Commissioner
to have
committed
two or more
separate
willful violations
this
chapter... within a threeRelations in the
manner
prescribed
by the
department
and payofan
initial
year
(July 1, 2014)
$300
registration
fee or association in which the contractor
year period,
theInitial
contractor
or subcontractor
or a firm,
corporation,
partnership,
nonrefundable
application
fee
of
three
hundred
dollars
($300)
to
or subcontractor has any interest is ineligible for a period up to three years to do either
of the following:
(a)(2)(B)
Ifberegistration
applicable,
theyear
contractor
licensed
in contractors
Same
registration
(7/1
–is6/30)
all
(1)
Bid
on for
or
awarded
a contract
forthis
a public
works
project.
qualify
under
section
and
anforannual
renewal fee on
accordance
with
Chapter
9
(commencing
with
Section
(2)
work
subcontractor
on athereafter.
public
works The
project.
 contractor
Subsequent
years;
“uniform
amount”
adjusted
toan
support
DLSEor
PWR
(a)(2)(C)
The
not year
have
any
delinquent
liability
to
employee
the
state 4for
or Perform
before
Julyas1a does
ofCompensation
each
annual
renewal
fee shall
(a)(2)(A)
Workers’
coverage
that
meets
the
requirements
of
Division
(c) Whenever
a
contractor
or
subcontractor
performing
a
public
works
project
has
failed
to
provide
a timely
7000)
of
the
Business
and
Professions
Code.
activities
(a)(2)(D)
The
contractor
is
not
currently
debarred
under
any
assessment
of
back
wages
or
related
damages,
interest,
fines,
or
penalties
pursuant
be in
uniform
set
byofand
the
Director
of Industrial
Relations,
and worker
response
to a
a request
the Division
Labor
Standards
Enforcement,
thefor
Division
of Apprenticeship
(commencing
withbyamount
Section
3200)
includes
sufficient
coverage
any
whomto
Section
1777.1
orand
any fees
othermay
or orstate
law
Standards,
or theregistration
awarding
to
produce
certified
payroll
records
pursuant
tothan
Section
1776,
Labor
any
final
judgment,
order,body
orunder
determination
byfederal
asubject
any
federal,
state,
or the
local
thecontractor
initial
renewal
becourt
adjusted
no
more
the
employs
to
perform
work
that
is
to
prevailing
wage
requirements
Commissioner
shall notify
the
or subcontractor
that, infrom
addition
to any
other penalties provided by law, the
providing
fordirector
thecontractor
debarment
of the
contractors
public
works.
administrative
agency,
including
a
confirmed
arbitration
award.
However,
forCoverage
purposes
of
thisare
annually
by
the
to
support
costs
specified
in
Section
1771.3.
otherorthan
a contractor
who
is separately
registered
under
thisif the
section.
may
contractor
subcontractor
will be
subject
to debarment
under this
section
certified
payroll records
paragraph,
the
contractor
shall
not
forofany
judgment,
order,
orthat
determination
not produced
within
30
after receipt
ofdisqualified
thecertificate
written notice.
If the
commissioner
finds
the contractor
be evidenced
bydays
aCompensation
current
andbevalid
workers’
compensation
Insurance
or or

Workers
Insurance
subcontractor
failed to provided
comply with that
Section
1776
by that deadline,
unless the
commissioner
finds
that the
failure to
that
iscertification
underhas
appeal,
the
contractor
hasSection
secured
the
payment
of
any
amount
of
self-insurance
required
under
7125
of
the
Business
and
comply was due to circumstances outside the contractor’s or subcontractor’s control, the contractor or subcontractor or
 Contractors’
License,
eventually
found
due
through
a bondiforapplicable
a firm,Professions
corporation,
partnership,
or association
inother
which appropriate
the contractor ormeans.
subcontractor has any interest is ineligible for
Code.
a period of not
one year and
not morefor
than
three years to do either of the following:
 less
Nothan
delinquent
liability
backwages
(1) Bid on or be awarded a contract for a public works project.
 Not
to debarment
(2) Perform
worksubject
as a subcontractor
on a public works project.
(d) A willful 
violation
the bid,
contractor
or subcontractor
reasonablyor
should
have known of
No occurs
publicwhen
works
award
of public knew
worksor contract
performance
ofhis or her
obligations under the public works law and deliberately fails or refuses to comply with its provisions.
public work in prior 12 months without DIR Registration
(e) The Labor Commissioner shall publish on the commissioner’s Internet Web site a list of contractors who are
ineligible to bid on or be awarded a public works contract, or to perform work as a subcontractor on a public works
Public Agency Law Group
project pursuant to this chapter.
Attorneys At Law
 Annual registration
 Conditions to DIR Registration
[Remaining text of (e) not reproduced][§1777.1 (f)(g)(h) and (i) not reproduced]
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
EFFECT OF NON-DIR REGISTRATION
Labor
§1725.5

If Code
public
work bid, award of public works contract or
(c) A contractor who fails to pay the renewal fee required under paragraph
ofor public
in anyprior
12 months
(1) performance
of subdivision (a) on
before thecontract
expiration of
prior period
of
registration
prohibited from
bidding to
on register
or engaging
withoutshall
DIR be
Registration,
allowed
if: in the
performance of any contract for public work until once again registered
 No
violation
prior
12 months
pursuant
to this
section.ofIfDIR
the Registration
failure to payinthe
renewal
fee was inadvertent,
the contractor
mayof
renew
its registration
retroactively
by paying an additional
 Payment
penalty
registration
fee
nonrefundable penalty renewal fee equal to the amount of the renewal fee
within 90 days of the due date of the renewal fee.
Labor Code §1725.5(a)(2)(E)
(i)Contractor
to renew
DIR toRegistration
The contractor failing
has not previously
been found
be in violation of“prohibited
the
requirements
of this
within thein
preceding
12 months.
from
bidding
onparagraph
or engaging
the performance
of any
contract
for pays
public
work” nonrefundable
until renewal
(ii)
The contractor
an additional
penalty
registration
fee of two thousand dollars ($2,000).
Registration
of
DIR
 90 day period after registration expiration for retroactive renewal
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
“INADVERTENT” LISTING OF NONDIR REGISTERED SUBCONTRACTOR
 Bid Proposal Responsiveness
Labor Code §1771.1
(c) An inadvertent error in listing a subcontractor who is not registered
pursuant to Section 1725.5 in a bid proposal shall not be grounds for filing a
bid protest or grounds for considering the bid nonresponsive, provided that
any of the following apply:
(1) The subcontractor is registered prior to the bid opening.
(2) Within 24 hours after the bid opening, the subcontractor is registered
and has paid the penalty registration fee specified in subparagraph (E)
of paragraph (2) of subdivision (a) of Section 1725.5.
(3) The subcontractor is replaced by another registered subcontractor
pursuant to Section 4107 of the Public Contract Code.
 Public Contract Code §4107 Non-DIR Registered Subcontractor
Substitution
 Timing
 Instructions for Bidders & General Conditions Provisions
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
DISTRICT & DIR REGISTRATION
REQUIREMENTS
Designation of Subcontractors; Subcontractors List. In accordance with Public Contract Code §4104, the Subletting and
Subcontracting Fair Practices Act (California Public Contract Code §§4100 et seq.), each Bidder shall submit, on the
form of Subcontractors List included with the Contract Documents, a list of its proposed Subcontractors for the proposed
Work, including any Alternate Bid Items, who will perform/provide portions of the Work valued at or more than onePublic
Contract
§4104
half
(1/2)
of one Code
percent
(1%) of the amount proposed by the Bidder for the Work. The Subcontractors List consists of
(a)
(1)
The
name,
the
location
of the the
place
of business,
and of
theinformation
California relating
contractor
number
of each as
six (6) columns, each of which requires
Bidder’s
disclosure
to license
each listed
Subcontractor
subcontractor who will perform work or labor or render service to the prime contractor in or about the
follows:
construction of the work or improvement, or a subcontractor licensed by the State of California who, under
subcontract
to Subcontractor
the prime
contractor,
fabricates
installs a portion of the work or improvement
Column
A Name of
Labor
Code specially
§1771.1(b)
(DIRand
Registration)
Advertisement
& Call
For Bids
according
to detailedAddress
drawings
contained
in theNotice
plans and specifications, in an amount in excess of one-half
Column
B Subcontractor’s
Notice
of
the
requirement
of 1C percent
of
the Registration.
prime
total bid
or, in thedescribed
case oflabor,
bidsinorsubdivision
offers
for the (a)
construction of streets
Column
Subcontractor’s
Portioncontractor's
of the Work
DIR
The
required
work,
materials
[DIR Registration]
shall of be
included
in all
bid total bid or ten
or highways,
includingCalifornia
in excess of License
one-half
1 percent
of the prime
contractor's
Column
D Subcontractor’s
Contractors’
and/orbridges,
services
(“Work”)
are subject
to Department
of
thousand
dollars ($10,000),
whichever
is greater.
Column
E Subcontractor
Sub-Bid
Pricing
invitations
and
public works contracts
Industrial
Relations
(“DIR”)
registration
requirements
(2) FAn
inadvertent DIR
error
in listing the
California
contractor
license number
provided pursuant to paragraph
Column
Subcontractor
Registration
Number
and Expiration
Date
(1) shall not be
grounds to
for Labor
filing a bid
protest
or grounds
for considering
the bid nonresponsive if the
pursuant
Code
§1725.5
(“DIR
Registration”).
corrected
license
number
towith
the public
entity
the prime
contractor
within 24
hours by
Columns
A, B, Ccontractor's
andThe
D of Bidder
the
Subcontractors
List
must be
completed
the by
Bidder
for DIR
each
Subcontractor
identified
shallis submitted
comply
all by
applicable
after the
opening andList
provided
theconcurrently
corrected contractor's
licenseBid
number
corresponds
to Ethe
submitted
the Bidder
in itsbid
Subcontractors
submitted
with the Bidder’s
Proposal.
If Column
and/or
Column F
Registration
requirements
as
a
condition
to
a
responsive
and location
subcontractor.
of thename
Subcontractors
Listfor
is that
not completed
on the form of Subcontractors List submitted by a Bidder concurrently with its
proposal.
The
Bidder
awarded
the
Contract
for
the
(3) (A) Subject
to subparagraph
(B),information
any information
requested
by Etheand/or
officer,
department,
board, or
Bid Proposal,
such Bidder
shall submit the
required
by Columns
F of
the Subcontractors
List for
commission
concerning
anytwenty-four
subcontractor
the prime
contractor
is required
to
under thisofsubdivision,
each listed
Subcontractor
within
(24)who
hours
after performance
the
latest date/time
submission
Bid Proposals.
Work
shall,
at all times
during
of for
thelist
other
than
the
subcontractor's
name,
location
of
business,
and
California
contractor
license
number,
may be
Failure of a BidderWork,
to complycomply
with the foregoing
will applicable
render the Bidder’s
Proposal non-responsive and rejected.
with all
DIRBidRegistration
submitted by the prime contractor up to 24 hours after the deadline established by the officer,
requirements
shall
require
allprime
Subcontractors
of shall verify and confirm
department,
board, or commission
for
receipt
of bids
by
contractors.
Subcontractor
DIR Registration.
Priorand
to submitting
a Bid
Proposal
for the
Work, each Bidder
(B) Subcontractor
A state or
localidentified
agency
subparagraph
at isitscurrently
option.
any
tier
to may
betheimplement
inBidder’s
compliance
with(A)ListDIR
Registration
that each
in
Subcontractor’s
a DIR Registered Contractor. If a
Subcontractor identified
in a Bidder’s
Subcontractors
List is notof
currently
a DIR Registered Contractor, the Bid Proposal
requirements
during
performance
the Work.
(b)
The
portion
of
the
work
that
will
be
done
by
each
subcontractor
under
TheLabor
primeCode
contractor
shall listoccur,
of such a Bidder is not deemed non-responsive if any of the conditions this
set act.
forth
§1771.1(c)
only onethat
subcontractor
for each
as the
is defined
byfor
thethe
prime
contractor
in his for
or her
provided
if such a Bidder
is portion
awarded
Contract
Work,
the request
the bid.
District’s consent to replace
Agency
Law Group may
the non-DIR Registered Subcontractor with a DIR Registered Subcontractor pursuant to Labor Public
CodeAttorneys
§1771.1(c)(3)
At Law
This section
shall become
operativeand
on prior
July 1,
T: 310-640-0800
310-640-0818
be(c)made
after award
of the Contract
to2014.
the non-DIR Registered Subcontractor performance
of/ F:any
Work.
 Amend Call for Bids/Advertisement
 Amend Subcontractors List
 Incorporate DIR Registration Verification Form
 Amend General Conditions
 Review Division 1 Specifications; Amend
 Amend Pre-Qualification Applications
swong@palg.net
DISTRICT “TO DO” LIST FOR DIR REGISTRATION
 Modify Call for Bids/Advertisement
 Bidder DIR registration as condition of bidder qualification to submit bid
proposal and award of contract
 DIR registration required for all subcontractors
 Modify Instructions for Bidders
 Bidder DIR registration required for responsive bid proposal
 Bidder submittal of DIR Registration Verification with Bid Proposal
 Listed Subcontractors DIR Registration Number
 Incorporate DIR Registration Verification Form
 Modify Subcontractors List for Subcontractor Registration No.
 Modify Contract Documents (General Conditions)
 Obligation to maintain DIR registration throughout performance
 Contractor certification of subcontractors’ DIR registration as condition to
payment
 Pre-Qualification Applications
 DIR registration verification
 Verification of Subcontractors’ DIR registration
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
CONTRACT DOCUMENTS MODIFICATIONS;
DIR REGISTRATION
 DIR Registration required to perform for contractor and all subcontractors
 Subcontractors subject to DIR Registration
 Listed
 Non-Listed
 Every tier
 Contractor obligation to verify; prohibit performance by any non-DIR registered
contractor
 Lapse in DIR Registration contractor/subcontractor as event of default
 No Contract Time or Contract Price adjustments for compliance with DIR
Registration requirements
 Right to withhold payments for DIR Registration violations; release withheld
payment after correction of violation, less District costs related to DIR Registration
violation
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
DLSE PWR ACTIVITIES
 Contractors Submit CPRs to DLSE
 Monthly submittal, or more frequently if required by project contract documents
 E-filing of CPRs in DLSE prescribed format
 PLA/PSA Exception
Labor Code 1771.4(a)(3)
Each contractor and subcontractor shall furnish the
Labor
1771.4(b)(2)
PLA 1776
Exception
for DLSE
CPRs
recordsCode
specified
in Section
directly
to the
(b)
The Labor Commissioner
may
exempt a public
works
Code
1771.4(c)(2)(A)
& (B)
Labor Commissioner,
in theLabor
following
manner:
compliance
with
allThe
or
part
of the
(2)more
requirements
of paragraphof(3) of subdivision (a) shall
(A) from
At
least
monthly
or
frequently
if requirements
 project
DLSE
PWR
monitoring
/
enforcement
division (a)
of this section
ifonly
either
of the
following
occur:
apply
to
following
projects:
specified
in the contract
with
thethe
awarding
 Immediately
effectivebody
for (A)
former
DIR that
CMU
projects
(state-wide
bond funded,
(2) body.
The awarding
hasProjects
entered
into
a collective
were
subject
to a requirement
to furnish
design-build
projects)
agreement
that
binds
contractorsMonitoring Unit pursuant to
records
to theallCompliance
(B) Inbargaining
a format prescribed
by the
Labor
performing
workApril
on 1,the2015
project
and ofincludes
 Projects
awarded after
Section
16461
Title 8 aof the California Code of
Commissioner.
for resolving
disputes
about
thetopayment
Regulations,
prior
the effective date of this section.
 Other mechanism
projects designated
by DLSE
of wages.
(B) Projects for which the initial contract is awarded on or
 All new and on-going projects as of January 1, 2016
after April 1, 2015.
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
IMPLEMENTING DLSE
PWR REQUIREMENTS
 Revise Call for Bids/Contract Documents
 Notice of DLSE PWR monitoring and enforcement; DLSE CPR Submittals
 Bids advertised Fall, 2014 with contract award after January 1, 2015
 Call for bids
Labor Code
§1771 Conditions
 General
Except for public works projects of one thousand dollars ($1,000) or less, not less
 Notice of Required Job Site Postings
than the general prevailing rate of per diem wages for work of a similar
 Contractor
CPR submittal
DLSE
character
in the locality
in whichtothe
public work is performed, and not less than
 Required
forrate
contracts
after for
Aprilholiday
1, 2015
the general
prevailing
of perawarded
diem wages
and overtime work
fixed as 
provided
in requirements
this chapter, shall
be paidConditions
to all workers employed on public
Establish
in General
works.  Establish frequency of CPR submittals and verification of CPR submittal
Contracts/Projects Affected
 Public works projects valued at $1,000 or more
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
SUMMARY DISTRICT
ACTIONS
 Fall, 2014
 Revise bid/contract
documents
for bids
to be
awarded
after January 1,
Labor Code
§1771.4(a)(1)
& (2)
(CPRs
& DLSE PWR)
2015 for notice
monitoring
contractor
CPRpublic
submittal to
(a) of DLSE
All of PWR
the following
areand
applicable
to all
DLSE
works projects that are otherwise subject to the
 Revise Uniform
Public Construction
requirements
of this chapter:Cost Accounting Pre-Qualification
Application for DIR(1)
Registration
confirmation
The call for
bids and contract documents shall
Labor Code §1776(i) CPRs and Contract Documents
(i) Revise
project specific
or that
building
program
Pre-Qualification
Application
specify
the project
is subject
to compliance
The body awarding the contract shall cause to be
for DIR Registrationmonitoring
confirmation
and enforcement by the Department of
inserted in the contract stipulations to effectuate this
section.
Revise Design-BuildIndustrial
Pre-Qualification
Relations. Application for DIR registration
 Notify DIR of all public
works
contractbody
awards
(2) The
awarding
shall post or require the
 Winter, 2015
prime contractor to post job site notices, as
prescribed by regulation.
 Revise Bid/contract documents for contracts bidding after March 1, 2015
or contracts awarded after April 1, 2015 (DLSE CPRs/PWR monitoring
Labor Code §1771.1(b) (DIR Registration)
AND DIR registration)
Notice of the requirement described in subdivision (a)
 Develop process for verification of contractor/subcontractor DIR
[DIR Registration] shall be included in all bid
Registration
invitations and public works contracts
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
CPRs AND APPLICATION FOR PAYMENTS
 Typical current practice
 Contract provisions require submittal of CPRs concurrently with submittal of
Pay App as condition for District to process and disburse Progress Payment
 No disbursement of Progress Payment without concurrent submittal of CPRs
to District for period covered by Progress Payment
 Alternatives for handling CPRs and Progress Payments After SB 854
 Eliminate verification of CPR submittal and/or submittal of CPR copies to
District as condition for processing and disbursing Progress Payment
 Require certification of CPR submittal to DLSE as condition for processing
and disbursing Progress Payment
 Require certification of CPR submittal to DLSE AND submittal of CPR copies
to District as condition for processing and disbursing Progress Payment
 Form for Contractor Certification of CPR Submittal to DLSE and/or submittal
of CPR copies to District
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
CONTRACT DOCUMENTS MODIFICATIONS;
DLSE PWR MONITORING/ENFORCEMENT
 CPRs
 CPR submittal to DLSE; contractor/all subcontractors
 Frequency of CPR submittals
 Concurrent submittal to District/Verification of CPR submittals
 All subcontractors submittal as condition to payments
 Job Site Posting
 Delegate responsibility for posting to contractor
 Require all DLSE designated postings (substance, locations, etc.)
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
FAQs
 Does SB 854 apply to architects/engineers?
 What is timing for the contractor to request consent to
substitute an unregistered subcontractor?
 Do “non-listed” subcontractors need to be DIR registered?
 How is SB 854 implemented for an existing state-wide bond
funded project or an existing design-build project?
 What happens if a contract is awarded to an unregistered
contractor?
 If the contract documents require submittal of CPRs as a
condition to payment, how do I verify that the contractor and
subcontractors have submitted CPRs?
Public Agency Law Group
Attorneys At Law
T: 310-640-0800 / F: 310-640-0818
swong@palg.net
SB 854 KEY STATUTORY CHANGES
Description
Labor Code
Labor Code §1725.5 Added DIR contractor registration process; registration criteria and implementation of DIR
registration requirements
Labor Code §1771.1 Added DIR registration required to be qualified to: (i) bid public works; (ii) public contract
award; and (iii) public contract performance; process for handling “inadvertent error”
listing unregistered subcontractor
Labor Code §1771.3 existing State Public Works Enforcement Fund
provisions repealed; and new
provisions enacted
Labor Code §1771.4 added Call for bids and contract documents establish contractor’s obligation for DLSE CPR
submittal and PWR monitoring/enforcement
Labor Code §1771.7
amended
DIR CMU PWR enforcement for state-wide bond funded projects eliminated for
contracts awarded after January 1, 2012
Contracts for state-wide bond funded projects awarded after January 1, 2012 subject
to SB 854 DLSE PWR enforcement/monitoring and CPR submittal to DLSE
Labor Code § 1773.3
existing provisions repealed
and new provisions enacted
District notice to DIR of public works contract award. Prior legislation required DIR
notice of contract award only for DIR CMU Projects. As amended, PWC 100 notice to
DIR required for all public works contract awarded.
Education Code §17250.30
and §81704
DIR CMU PWR only for design-build contract awarded before January 1, 2012
Public
Group
Design Build contracts awarded after January 1, 2012 subject
to Agency
Labor Law
Code
§1771.4
Attorneys At Law
CPR submittal to DLSE and DLSE PWR monitoring/enforcement
T: 310-640-0800 / F: 310-640-0818
swong@palg.net