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Public Entity Archives

Bulletin: California Public Works Contractors and Subcontractors Must Register!

Summary: Public works contractors and subcontractors take note- a new law requires you to register with the California Department of Industrial Relations as of July 1, 2014, even if your current public works project is already underway.  Failure to register disqualifies you from the bidding and contracting process, can cause an outright bid rejection and/or contract cancellation and can void or cancel an existing contract.  

California Legislature Eliminates Contractor Type 1 Indemnity

The California Legislature recently approved California Senate Bill 474, which provides that in private commercial or public works construction contracts, any indemnity obligations arising out of active negligence or willful misconduct of the indemnified party are void and unenforceable. These indemnity obligations were already prohibited in residential construction contracts (except for homeowners improving their single family dwelling).

Bi-partisan California State Senate Bill to Require Prevailing Wage

Senate Bill 7 seeks to close the loophole which has allowed California's 121 charter cities to remain exempt from California's prevailing wage regulations. The bill, largely viewed as a win for local contractors and the local labor force, has found opposition with municipalities' political representatives, who view the Bill as a further increase of the state's hold over the local government.

All state and local government agencies in California, with the exception of California's 121 charter cities, require contractors to pay prevailing wage, an hourly pay-and-benefits benchmark for workers, on taxpayer-funded projects. While most of the 121 charter cities also pay prevailing wage, some continue to use public funds to contract for projects without such a wage requirement.

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