SB 854 Public Bid Requirements Take Effect March 1, 2015
March 1st is here, and some rather important portions of SB 854 take effect today. A summary can be reviewed on the Department of Industrial Relations (DIR) website.
Among other provisions, note that effective March 1, 2015:
- No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with DIR.
- Once the registration requirement becomes mandatory (March 1, 2015 for bids and April 1, 2015 for projects awarded), an awarding body may not accept a bid or enter into a contract for public work with an unregistered contractor.
These latest provisions follow closely on the heels of the January 1, 2015, requirement that all bids include certain SB 854 warnings and disclosures, including:
- “No contractor or subcontractor may be listed on a bid proposal for a public works project (submitted on or after March 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].”
- “No contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.” and
- “This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.”
These new provisions are likely to catch some public entities, contractors, and subcontractors off guard. We anticipate bid protests arising from invitations to bid that do not include the required provisions, as well as bidders without the requisite DIR registrations. Awarding entities, contractors, and subcontractors should all take notice and the necessary action to comply (or act on others’ non-compliance).