Public Works Contracts

Introduction to Public Works

Public works law requires private construction contractors to pay prevailing wages to their workers and requires the construction contractor to follow public works law when working on a project funded by a public entity. A public entity can be the State of California, or any public agency such as a county, city, school or a special district. Prevailing wages are due, in most instances, if the project costs more than $1,000, and involves the following construction work: new construction, alteration, demolition, installation, repair and maintenance. Contractors must make an attempt to hire apprentices when the total project costs exceed $30,000.

SB 854: Public Works Reforms

Public works reforms (SB 854) were signed into law on June 20, 2014. The reforms made several significant changes to the administration and enforcement of prevailing wage requirements by the Department of Industrial Relations (DIR). Among other things, SB 854 established a public works contractor registration program to replace prior Compliance Monitoring Unit (CMU) and Labor Compliance Program (LCP) requirements for bond-funded and other specified public works projects. The fees collected through the program established by SB 854 are used to fund DIR’s public works activities. For more information, visit www.dir.ca.gov/Public-Works/PublicWorksSB854.html.

For Awarding Bodies

An awarding body can be an agency of the State, county, city, school or special district awarding a contract for a public works project, such as building a new city hall, fire station, public school or park. (Labor Code section 1722 )

The awarding body must register the project with DIR within five days of awarding the contract, by completing form PWC-100. (Labor Code section 1773.3 ) This requirement applies to all public works projects that are subject to the prevailing wage requirements of the Labor Code, regardless of size or funding source.

The awarding body (AB) is responsible for administering its project and ensuring that public funds are used appropriately. As partners with DIR’s Public Works Enforcement team, ABs must also ensure that all public works contractors are in compliance with all labor laws.

For more information for Awarding Bodies, visit: www.dir.ca.gov/Public-Works/Awarding-Bodies.html