Public works: CSLB Law & Business Practice Questions

Above what contract amount must prevailing wages be paid on a California public works project?

Labor Code §1771 requires prevailing wages on public works except projects of $1,000 or less; it covers contract work, including maintenance, but not work done by the agency's own forces.

Which work is a public work under Labor Code §1720?

Section 1720(a)(1) defines public works as construction, alteration, demolition, installation or repair done under contract and paid for in whole or in part with public funds.

What must a contractor or subcontractor have before it may bid on, be listed in a bid for, or work on a California public works project?

Labor Code §§1725.5 and 1771.1 require DIR public works contractor registration to bid, be listed, or perform public work (with small-project exceptions).

DIR registration is not required for a public construction project of what size?

Section 1725.5(f) exempts construction, alteration, demolition, installation or repair projects of $25,000 or less, and maintenance projects of $15,000 or less. Prevailing wages still apply above $1,000.

How often must public works contractor registration with DIR be renewed, and what is the fee for one year?

DIR registration runs by fiscal year with renewal by July 1 (§1725.5(a)); DIR lists fees of $400, $800 or $1,200 for one, two or three years.

A subcontractor underpays prevailing wages to a worker on a public works job. What penalty may the Labor Commissioner assess?

Labor Code §1775 sets a penalty of up to $200 for each calendar day for each worker paid less than prevailing wage, in addition to the wage difference.

What payroll records must every contractor and subcontractor keep on a public works project?

Section 1776 requires accurate payroll records for each worker (name, address, SSN, classification, daily and weekly hours, wages), verified under penalty of perjury; §1771.4 requires submitting them to the Labor Commissioner at least monthly.

The awarding body sends a written request for a contractor's certified payroll records. How long does the contractor have to comply?

Section 1776 gives the contractor 10 days after receiving a written request to provide the records; afterward penalties can be withheld from progress payments.

Where must the prevailing wage rates for a public works project be posted?

Labor Code §1773.2 requires the awarding body to post a copy of the director's prevailing wage determination at each job site and to state the rates (or where they are on file) in the bid documents.

On a covered public works project, what is the minimum ratio of apprentice hours to journeyman hours?

Section 1777.5(g) requires at least one hour of apprentice work for every five hours of journeyman work, unless an exemption applies (for example, contracts under $30,000).

How must apprentices be paid on a public works project?

Section 1777.5(b) requires apprentices to be paid the prevailing apprentice rate for their trade and to work only in the craft for which they are registered.

On public works, what happens if a worker is required to work more than 8 hours in a day without overtime pay at 1.5 times the basic rate?

Section 1815 allows work over 8 hours a day or 40 a week only with pay of at least 1.5 times the basic rate; §1813 imposes a $25 penalty per worker per day for violations.

In a public works bid, which subcontractors must the prime contractor list?

Public Contract Code §4104 requires listing each subcontractor doing work over one-half of 1 percent of the prime bid (for streets and highways, the greater of that or $10,000), with license and DIR registration numbers.

A prime contractor bids $2,000,000 on a public school building. Above what dollar amount must a subcontractor's work be listed?

One-half of 1 percent of $2,000,000 is $10,000, so subcontractors with more than $10,000 of work must be listed.

After award, may a prime contractor replace a listed subcontractor with another one on its own?

Public Contract Code §4107 allows substitution only with the awarding authority's consent in listed situations (such as refusal to sign or insolvency); §4110 allows cancellation or a penalty of up to 10 percent of the subcontract for violations.