July 28, 2015
The Department of Industrial Relations (DIR) has launched its new website: http://www.dir.ca.gov/Public-Works/PublicWorks.html, which provides specific “links” for Awarding Bodies, Contractors, Apprentices, Prevailing Wage, and Certified Payroll Reporting. There is a link on the main page for a searchable database for public works projects (public access). This link is important because the search will reveal the “DIR Project ID” number that is critical for the contractors’ ability to enter their certified payroll reports into the electronic Certified Payroll Records (eCPR) system. Awarding Bodies cannot see this number on their version of the form PWC-100 after it is filed – they must access the public version to obtain the number and then provide it to their contractor(s).
1.) Contractor Registration/Renewal
The requirement to “renew” must have been completed on or before 7/1/15, for fiscal year 2015-2016. On 6/30/15 there were approximately 21,000 contractors/vendors registered in the system for fiscal year 2014-2015. As of 7/24/15, there was approximately half that number for fiscalyear2015-2016. It has been noted that contractors seem to be having trouble during the renewal process at the “contractor certification” portion; specifically, at the question regarding a “lapse in registration certification” (Labor Code Section 1725.5 question). In essence, contractors/vendors must certify, under penalty of perjury, that if they had a registration number and failed to renew on or before 7/1/15 that they either:
a. “HAD NOT” bid on, was awarded a contract or purchase order for, or worked on, a public works project after the trigger dates of March 1 or April 1, 2015. If the answer is “NO” the $300 annual fee is assessed for renewal (also applies to a “new” registration – never registered). The key here is that the contractor must not have been involved in any public work activity after the trigger dates, but did have a valid registration number.
b. If the answer is “YES” (bid on,was awarded a contract or purchase order, or worked on a public work) the contractor/vendor has the opportunity to explain if the failure to renew was an inadvertent error. If so, an additional $300 fee is assessed as a “penalty” during a 90 day period from 7/2/15, and total renewal fee then equals $600.
c. If the inadvertent error is “NO” the contractor is subject to a $2,000 penalty.
d. If it is a “NEW” registration and the contractor/vendor has bid on, was awarded a contract or purchase order, or worked on, a public works project after the trigger dates without being properly registered, the fee consists of the $300 annual fee PLUS a $2,000 penalty; a total of $2,300.
2.) Apprentice Requirements
DIR’s public works website and the link to the Division of Apprenticeship Standard’s website (www.dir.ca.gov/DAS/PublicWorksForms.htm) do not clearly identify that the requirements only apply to contracts, purchase orders, or project values over $30,000 pursuant to Labor Code Section 1777.5 (o) – (total value). Awarding Bodies and Contractors/Vendors do not have a clear understanding how to comply with the requirements for “non-traditional” (not a normal construction project) public works projects if the value is over $1,000 and up to $30,000. The State’s information makes it appear that every project over $1,000 is required to comply and it is causing significant concern.
We thank Jenny Hannah, C.A.S.H Chair and Chief Facilities Officer, Kern County Superintendent of Schools, and Chuck R. Park, Facilities Specialist, Kern County Superintendent of Schools, for sharing this information and expertise in school labor compliance with C.A.S.H. members.
~ C.A.S.H. Staff