Register with DIR to bid on public works
The California Department of Industry Relations (DIR) requires contractors that wish to bid public works projects register each year. This law was enacted in 2015, but what many may not realize is that the DIR requires the contractor to renew its registration each year prior to start of the fiscal year (July 1 – June 30). The registration is $300 annually. Click here to be directed to the registration page. If a contractor fails to make payment or register while bidding on public works projects, they can be subject to a $2,000 penalty.
This requirement Public Works Reforms (SB 854) passed in 2014. In addition to the annual fee, some of the reforms key points include:
- Confirms contractors have proper insurance required by the state
- Possess a valid contractors license
- Are not debarred from doing business with the state or federal government
- Contractor must not be delinquent in unpaid wages to employees
- The DIR provides a database of all registered contractors
- Penalties if contractors register late, or do not register
Doing business in the public arena is much different than private. The red tape, paperwork, and bureaucracy is all real. This is another one of the many rules one must follow to do business. However, those contractors that are well organized, and realize there are certain rules and guidelines one must follow to pursue public works, can put themselves in the best position possible to take advantage of the billions of dollars California spends each year on public works.
At Surety1, we specialize in bonding contractors and can help with this process and others similar to be sure you are ready to work in the State of California. For more information on how to be sure you are set up to do business in the public arena, visit us at surety1.com