AGR-7486 - S&H CIVILWORKSDocuSign Envelope ID: 71EBE649-OE42-42CA-A4C3-64DF1EB473AF
AGR-7486 oS
CONTRACT
[Annual Concrete Replacement at Various Locations Phase II,
Fiscal Year 2022-2023 (Bid No. 22 23.21)]
THIS CONTRACT (the Contract) is made and entered into as of February 14th ,
2023 ("Effective Date") by and between the CITY OF ORANGE, a municipal corporation
("City"), and S&H CIVILWORKS, a California corporation ("Contractor"), who agree as follows.
ARTICLE .1
Work Performed
a. For and in consideration of the payments and agreements hereinafter mentioned, to
be made and performed by City, and under the conditions expressed in the two (2) bonds presented
to City with this Contract and incorporated herein by this reference, Contractor hereby agrees to
and shall do all the work and furnish all the labor, materials, tools and equipment, except such as
are mentioned in the specifications to be furnished by City to Contractor, necessary to complete in
good workmanship and substantial manner the work (the "Work") described in:
(1) The latest edition of the "City of Orange Standard Plans and Specifications"
(the "Orange Book") with the term "Engineer," as used in the Orange Book and in this Contract,
to specifically include the City Engineer (or designee);
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DocuSign Envelope ID: 71EBE649-OE42-42CA-A4C3-64DF1EB473AF
AGR-7486 . oS
CONTRACT
[Annual Concrete Replacement at Various Locations Phase II,
Fiscal Year 2022-2023 (Bid No. 2223.21)]
THIS CONTRACT (the "Contract") is made and entered into as of' February 14th
2023 ("Effective Date") by and between the CITY OF ORANGE, a municipal corporation
("City"), and S&H CIVILWORKS, a California corporation ("Contractor"), who agree as follows.
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Provisions and Standard Plans are on file with City's Public Works Director and are hereby
specifically referred to and by such reference made a part hereof. Contractor hereby acknowledges
that it has read, reviewed and understands the Plans; the Orange Book; the Greenbook, the Special .
Provisions, the Standard Plans, and the Encroachment Permit as they relate to the Work, all. of
which documents shall be referred to herein collectively as the "Plans and Specifications."
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C. Contractor acknowledges the provisions of Chapter 8.28 of the Orange Municipal
Code which requires, among other things, that Contractor utilize City's exclusive solid waste
hauler for the rental of bins for trash and debris removal and imposes mandatory recycling
requirements for self -hauled construction and.demolition waste. The terms and conditions set forth
in this Contract shall control over any terms and conditions in the Plans and Specifications to the
contrary.
d. The Work shall be performed in conformity with the Plans and Specifications and
the Bid Proposal and all applicable laws, including any and all applicable federal and state labor
laws and standards and applicable prevailing wage requirements and any and all state, federal and
local statutes, regulations and ordinances relating to the protection of human health or the
environment.
e. Unless and until otherwise notified in writing by City's Public Works Director,
City's Assistant Engineer, Eric Perez ("Authorized City Representative"), shall be the person to
whom Contractor will report for the performance of the Work hereunder. It is understood that
Contractor's performance hereunder shall be under the direction and supervision of the Authorized
City Representative or such other person as City's Public Works Director may designate from
time to time, that Contractor shall coordinate the Work hereunder with the Authorized City
Representative to the extent required by the Authorized' City . Representative, and that all
performances required hereunder by Contractor shall be performed to the satisfaction of the
Authorized City Representative or City's Public Works Director.
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DocuSign Envelope ID: 71EBE649-OE42-42CA-A4C3-64DF1EB473AF
C. Contractor acknowledges the provisions of Chapter 8.28 of the Orange Municipal
Code which requires, among other things, that Contractor utilize City's exclusive solid waste
hauler for the rental of bins for trash and debris removal and imposes mandatory recycling
requirements for self -hauled construction and.demolition waste. The terms and conditions set forth
in this Contract shall control over any terms and conditions in the Plans and Specifications to the
contrary.
d. The Work shall be performed in conformity with the Plans and Specifications and
the Rid Prnnncal and all annTicahle laws inchulino, anv and all annIicahle fPdderal anrd state lahnr
Contractor shall commence the Work provided for in this Contract within fifteen (15) days
of the date of the issuance by City of a Notice to Proceed and diligently prosecute completion of
the Work within Ninety (90) calendar days from such date, unless legal extension is granted in
accordance with the terms set forth' in the Greenbook. Time is of the essence in this Contract.
Contractor shall do all things necessary and incidental to the prosecution of Contractor's Work.
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DocuSign Envelope ID: 71 EBE649-OE42-42CA-A4C3-64DF1 EB473AF
J
ARTICLE 3
Compensation
a. Contractor agrees to receive and accept an amount not to exceed NINE HUNDRED
FOURTY-FOUR THOUSAND FIVE HUNDRED DOLLARS and 00/100 ($944,500.00) unless
said amount is amended by Contract Change Order approved by the City, as compensation for
furnishing all materials and doing all the Work contemplated and embraced in this Contract. Said
compensation covers (1) all loss or damage arising out of the nature of the Work, from the acts of
the elements; (2) any unforeseen difficulties or obstructions which may arise or be encountered in
the prosecution of the Work until its acceptance by City, other than as provided below; (3) all risks
of every description connected with the Work; (4) all expenses incurred by or in consequence of
the suspension or discontinuance of the Work; and (5) well and faithfully completing the Work,
and for the whole thereof, in the manner and according to the Plans and Specifications, and
requirements of the Authorized City Representative under them. .Retention amounts shall be
withheld from progress payments as required by law unless Contractor provides securities in lieu
of retention.
b. In addition to the scheduled Work to be performed by the Contractor, the parties
recognize that additional, unforeseen work and services may be required by the Authorized City
Representative. In anticipation of such contingencies, the sum of NINETY-FOUR THROUSAND
FOUR HUNDRED FIFTY DOLLARS and 00/100 ($94,450.00) has been added to the total
compensation of this Contract. The Authorized City Representative may approve the additional
work and the actual costs incurred by the Contractor in performance of additional work or services
DocuSign Envelope ID: 71 EBE649-OE42-42CA-A4C3-64DF1 EB473AF
ARTICLE 3
Compensation
J
a. Contractor agrees to receive and accept an amount not to exceed NINE HUNDRED
FOURTY-FOUR THOUSAND FIVE HUNDRED DOLLARS and 00/100 ($944,500.00) unless
said amount is amended by Contract Change Order approved by the City, as compensation for
furnishing all materials and doing all the Work contemplated and embraced in this Contract. Said
compensation covers (1) all loss or damage arising out of the nature of the Work, from the acts of
Licenses
Contractor represents that it and any subcontractors it may engage, possess any and all
licenses which are required under state or federal law to perform the Work contemplated by this
Contract and that Contractor and subcontractors shall maintain all. appropriate licenses, including
a City of Orange business license, at its cost, during the performance of this Contract.
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ARTICLE 5
Guarantees
a. Contractor guarantees the construction and installation of all Work included in the
Plans and Specifications for which Contractor has been awarded this Contract.
b. Should any of the materials or equipment installed pursuant to this Contract prove
defective or should the Work as a whole prove defective,due to faulty equipment, workmanship,
materials furnished or methods of installations, or should said Work or. any part thereof fail to
function properly, as designed, due to any of the above causes within twelve (12) months after the
date on which said Work is accepted by City, Contractor shall make repairs and furnish such.
materials and equipment as are necessary to be furnished and installed within fifteen (15) calendar
days after the receipt of a demand from City.
C. Said Work will be deemed defective within the meaning of this guarantee in the
event that it fails to function as originally intended either by the Plans and Specifications of this
Contract or by the manufacturer(s) of the equipment incorporated into the Work.
d. In the event repairs are not -made within fifteen (15) calendar days after Contractor's
receipt of a demand from City, City shall have the unqualified option to make any needed repairs
or replacements itself or by any other contractor. Contractor shall reimburse City, upon demand,
for all expenses incurred in restoring said Work to the condition contemplated in this Contract,
including the cost of any equipment or materials replaced.
DocuSign Envelope ID: 71EBE649-OE42-42CA-A4C3-64DF1EB473AF
ARTICLE 5
Guarantees
a. Contractor guarantees the construction and installation of all Work included in the
Plans and Specifications for which Contractor has been awarded this Contract.
b. Should any of the materials or equipment installed pursuant to this Contract prove
defective or should the Work as �a whole prove defective,due to faulty equipment, workmanship,
Model Maintenance Procedures with Best Management Practices (`BMPs") that City and its
contractors must adhere to. The Model Maintenance Procedures contain pollution prevention and
source control techniques to minimize the impact of those activities upon dry -weather urban
runoff, storm water runoff, and receiving water quality. Examples include: wash water from
cleaning of sidewalks or parking lots must be collected and disposed of in the sewer or landscaped
areas.
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b. The Permit, the DAMP and the Model Maintenance Procedures are on file in the
office of City's Director of Public Works. Contractor hereby acknowledges that it has read,
reviewed and understands the Permit, the DAMP and the Model Maintenance Procedures, as they
relate to the Work and hereby shall perform the Work in conformance therewith.
ARTICLE 7
Independent Contractor; Contractor not Agent
a. At all times during the term of this Contract, Contractor shall be an independent
contractor and not an employee of City. City shall have the right to control Contractor only insofar
as the result of Contractor's services rendered pursuant to this Contract.. City shall not have the
right to control the means by which Contractor accomplishes services rendered pursuant to this
Contract. Contractor ,shall, at its sole cost and expense, furnish all facilities, materials and
equipment which may be required for furnishing services pursuant to this Contract. Contractor
shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters
relating to the payment of its subcontractors, agents and employees, including compliance with
social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations
of any nature whatsoever. Contractor acknowledges that Contractor and any subcontractors,
agents or employees employed by Contractor shall not, under any circumstances, be considered
employees of City,. and that they shall not be entitled to any of the benefits or rights afforded
employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public
Employees Retirement System benefits, or health, life, dental, long -.term disability or workers'
compensation insurance benefits.
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b. The Permit, the DAMP and the Model Maintenance Procedures are on file in the
office of City's Director of Public Works. Contractor hereby acknowledges that it has read,
reviewed and understands the Permit, the DAMP and the Model Maintenance Procedures, as they
relate to the Work and hereby shall perform the Work in conformance therewith.
ARTICLE 7
Independent Contractor; Contractor not Agent
of lnclusmal ttelat'ions awww.ir ca:gov7LL&}c rA"daifionafiy;"ro per�rorhi�'Pwi�'1"t�fi8ei''�irii
Contract, Contractor must meet all State registration requirements and criteria, including project
compliance monitoring.
b. Attached hereto as Attachment No. 1 and incorporated herein by this reference is a
copy of the provisions of Sections 1725.5, 1771, 1771.1, 1771.4, 1775,.1776, 1777.5, 1813 and
1815 of the California Labor Code. Contractor hereby acknowledges that it has read, reviewed
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and understands those provisions of the Labor Code and shall prosecute and complete the Work
under this Contract in strict compliance with all of those terms and provisions.
C. Contractor shall secure the payment of compensation to its employees in
accordance with the provisions of.Section 3700 of the California Labor Code. Accordingly, and
as required by Section 1861 of. the California Labor Code, Contractor hereby certifies as follows:
"I am aware of the provisions of Section 3700 of the Labor Code which require
every employer to be insured against liability for workers' compensation or to
undertake self-insurance in accordance with the provisions of that code, and I
will comply with such provisions before commencing the performance of the
work of this contract."
d. Contractor shall indemnify, protect, defend and hold harmless City and its officers,
employees, contractors and agents, with counsel reasonably acceptable to City, from and against
any. and all loss, liability, damage, claim, cost, expense, and/or "increased costs" (including
reasonable attorney's fees, court and litigation costs, and fees of expert witnesses) which result or
arise in any way from the noncompliance by Contractor of any applicable local, state and/or federal
law, including, without limitation, any applicable federal and/or state labor laws (including,
without limitation, the requirement to pay state prevailing wages). It is agreed by the parties that,
in connection with the construction of the Work which is the subject of this Contract, Contractor
shall bear all risks of payment or non-payment of state prevailing wages. "Increased costs" as
used in this paragraph shall have the meaning ascribed to it in Labor Code Section 1781, as the
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DocuSign Envelope ID: 71EBE649-OE42-42CA-A4C3-64DF1EB473AF
and understands those provisions of the Labor Code and shall prosecute and complete the Work
under this Contract in strict compliance with all of those terms and provisions.
C. Contractor shall secure the payment of compensation to its employees in
accordance with the provisions of.Section 3700 of the California Labor Code. Accordingly, and
as required by Section 1861 of. the California Labor Code, Contractor hereby certifies as follows:
"II pamm aware oftheprovisions ofQSection
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nLaabboer Code
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conspicuous places, available to employees and applicants for employment, a notice setting forth
provisions of this non-discrimination clause.
b. Contractor shall, in all solicitations and advertisements for employees placed by, or
on behalf of Contractor, state that all qualified applicants will receive consideration, for
employment without regard to race, color, religion, sex, national origin, mental or physical
disability, or any other basis prohibited by applicable law.
DocuSign Envelope ID: 71EBE649-OE42-42CA-A4C3-64DF1EB473AF
C. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all
subcontracts for any Work covered by this Contract, provided that the foregoing provisions shall
not apply to subcontracts for standard commercial supplies or raw materials.
_ ARTICLE 10
Conflicts of Interest
Contractor agrees that it shall not make, participate in the making, or in any way attempt
to use its position as a contractor to influence any decision of City in which Contractor knows or
has reason to know that Contractor, its officers, partners, or employees have a financial interest as
defined in Section 87103 of the Government Code. Contractor further agrees that it shall not be
eligible to work as the builder for any project for which the design work is part of this Contract.
ARTICLE 11
Indemnity
Contractor shall defend, indemnify and hold harmless City and its officers, officials,
agents, and employees from and against:
a. Any and all claims, liabilities, losses, damages, penalties, costs or expenses
(including reasonable attorneys' fees and court costs) which City may directly or indirectly sustain
or suffer arising from or -as a result of the death of any person or any, accident, injury, loss or
DocuSign Envelope ID: 71EBE649-OE42-42CA-A4C3-64DF1EB473AF
C. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all
subcontracts for any Work covered by this Contract, provided that the foregoing provisions shall
not apply to subcontracts for standard commercial supplies or raw materials.
_ ARTICLE 10
Conflicts of Interest
fnsuraiiee.:�
a. Contractor shall procure and maintain for the duration of this Contract insurance
against claims for injuries to persons or damages to property which may arise from or in connection
with the performance of the Work hereunder and the results of that Work by Contractor, its agents,
representatives, employees or subcontractors. Any umbrella liability insurance that is provided as
part of the general or automobile liability minimums set forth below shall be maintained for the
duration of the Contract.
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DocuSign Envelope ID: 71 EBE649-OE42-42CA-A4C3-64DF1 EB473AF
b. Contractor shall maintain the following minimum amount of insurance: the greater
of either the limits set forth in (1) through (4), below; or all of the insurance coverage and/or limits
carried by or available to Contractor.
(1) General Liability $2,000,000 per occurrence for bodily injury, personal
injury and property damage. If
Commercial General Liability insurance
or other form with a general aggregate
limit -is used, either the general aggregate
limit shall apply separately to this
project/location or the general aggregate
limit shall be twice the required
occurrence limit.
(2) Automobile Liability $1,000,000 per accident for bodily injury and
property damage.
(3) Workers' Compensation as.required by the State of California.
(4) Employer's Liability $1,000,000 per accident for bodily injury or disease.
C. Any insurance proceeds in excess of or broader than the minimum required
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DocuSign Envelope ID: 71 EBE649-OE42-42CA-A4C3-64DF1 EB473AF
b. Contractor shall maintain the following minimum amount of insurance: the greater
of either the limits set forth in (1) through (4), below; or all of the insurance coverage and/or limits
carried by or available to Contractor.
(1) General Liability $2,000,000 per occurrence for bodily injury, personal.
injury and property damage. If
Commercial Liability insurance
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liability arising out of Work or operations performed by or on behalf of Contractor, including
materials, parts or equipment furnished in connection with such Work or operations. A policy
endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu
of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an
additional insured as a contracting party. The minimum coverage required by Subsection 12.b,
above, shall apply to City as an additional insured.
DocuSign Envelope ID: 71EBE649-OE42-42CA-A4C3-64DF1EB473AF
(2) For any claims related to this Contract, Contractor's insurance coverage
shall be primary insurance with respect to City, its officers, officials, agents and employees. Any
insurance or self-insurance maintained by City, its officers, officials, agents and employees shall
be excess of Contractor's insurance and shall not contribute with it.
(3) Coverage shall not be canceled, except after thirty (30) days' prior written
notice has been provided to City.
f. Contractor shall furnish City with original certificates of insurance and
endorsements effecting coverage required by this Article 12. The endorsements shall be on forms
acceptable to City. All' certificates and endorsements are to be received and approved by City
before the Work commences. However, failure to do so shall not operate as a waiver of these
insurance requirements. City reserves the right to require complete, certified copies of all required -
insurance policies, including endorsements effecting the coverage required by these specifications
at any time.
g. All insurance procured and maintained by Contractor shall be issued by insurers
admitted to conduct the pertinent line of insurance business in California and having a rating of
Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide.
h. Contractor shall immediately notify City if any required insurance lapses or is
otherwise modified and cease performance of this Contract unless otherwise directed by City.. In
such a case, City may procure insurance or self -insure the risk and charge Contractor for such costs
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(2) For any claims related to this Contract, Contractor's insurance coverage
shall be primary insurance with respect to City, its officers, officials, agents and employees. Any
insurance or self-insurance maintained by City, its officers, officials, agents and employees shall
be excess of Contractor's insurance and shall not contribute with it.
(3) Coverage shall not be canceled, except after thirty (30) days' prior written
notice has been provided to City.
1ei}sr1dZ10IInrininol narfi notAe of inamirannP anil
City, acting through its City Manager or designee, reserves the right to terminate this
Contract for any reason by giving five (5) days' written notice of intent to terminate to Contractor.
Upon receipt of notice, Contractor shall immediately cease work, unless the notice provides
otherwise. Should City terminate this Contract, City shall pay Contractor for services satisfactorily
provided and all allowable reimbursements incurred to the date of termination incompliance with
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DocuSign Envelope ID: 71EBE649-OE42-42CA-A4C3-64DF1EB473AF
this Contract, unless such termination shall be for cause, in which event City may withhold any
disputed compensation. City shall not be liable for any claim of lost profits.
ARTICLE 14
Maintenance and Inspection of Records
In accordance with generally accepted accounting principles, Contractor and its
subcontractors shall maintain reasonably full°and complete books, documents, papers, accounting
records and other information (collectively, the "records") pertaining to the costs of and
completion of services performed under this Contract. During the term of this Contract and for a
period of three (3) years after termination or completion of this Contract, City shall have the right
to inspect and/or audit Contractor's records pertaining to . the performance of this Contract at
Contractor's office. Contractor shall make available all such records for inspection or audit at its
offices during normal business hours and upon three (3) days' notice from City; and copies thereof
shall be furnished if requested.
ARTICLE 15
Compliance with Laws
a. Contractor shall be knowledgeable of and comply with all local, state and federal
laws pertaining to the subject matter hereof or in any way regulating the activities undertaken by
Contractor or any subcontractor hereunder.
DocuSign Envelope ID: 71EBE649-OE42-42CA-A4C3-64DF1EB473AF
this Contract, unless such termination shall be for cause, in which event City may withhold any
disputed compensation. City shall not be liable for any claim of lost profits.
ARTICLE 14
Maintenance and Inspection of Records
In accordance with generally accepted accounting principles, Contractor and its
subcontractors shall maintain reasonably full°and complete books, documents, papers, accounting
rarnrrle nnd
respond, in a timely fashion to any government inspection requests relating to immigration law
compliance and/or Form I-9 compliance and/or worksite enforcement by the Department of
Homeland Security, the Department of Labor, or the Social Security Administration.
C. Contractor shall require all subcontractors and/or subconsultants to make the same
representations and warranties required by this Article 15 when hired to perform services under
this Contract.
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d. Contractor shall, upon request of City, provide a list of all employees working under
this Contract and shall provide, to the reasonable satisfaction of City, verification that all such
employees are eligible to work in the United States. All costs associated with such verification
shall be borne by Contractor. Once such request has been made, Contractor may not change
employees working under this Contract without written notice to City, accompanied by the
verification required herein for such employees. Contractor_ shall require all subcontractors and/or
sub -consultants to make the same verification when hired to perform services under this Contract.
e. If Contractor, or a subcontractor or subconsultant, knowingly employs an employee
providing Work under this Contract who is not authorized to work in the United States, and/or
fails to follow federal laws to determine the status of such employee, such shall constitute a
material breach of this Contract and may be cause for immediate termination of this Contract by
City.
f. Contractor shail'indemnify and hold City, its officials and employees harmless for,
of and from any loss, including but not limited to fines, penalties and corrective measures, City
may.sustain by reason of Contractor's failure to comply with said laws, rules and regulations in
connection with the performance of this Contract.
ARTICLE 16
Governing Law and Venue
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d. Contractor shall, upon request of City, provide a list of all employees working under
this Contract and shall provide, to the reasonable satisfaction of City, verification that all such
employees are eligible to work in the United States. All costs associated with such verification
shall be borne by Contractor. Once such request has been made, Contractor may not change
employees working under this Contract without written notice to City, accompanied by the
verification required herein for such employees. Contractor_ shall require all subcontractors and/or
sub -consultants to make the same verification when hired to perform services under this Contract.
ARTICLE 18
Notice
Except as otherwise provided herein, all notices required under this Contract shall be in
writing and delivered personally, by e-mail, or by first class mail, postage prepaid, to each party
at the address listed below. Either party may change the notice address by notifying the other party
in writing. Notices shall be deemed received upon receipt of same or within three (3) days of
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deposit in the U.S. Mail, whichever is earlier. Notices sent by e-mail shall be deemed received on
the date of the e-mail transmission.
"CONTRACTOR"
S&H Civilworks
1801 Hilltop Drive
Colton, CA 92324
Attn: Jesse Sotto
Telephone: 949 2064181
E-Mail: jesse@sandhcivilworks.com
"CITY"
City of Orange
300 E. Chapman Avenue
Orange, CA 92866-1591
Attn: Eric Perez
Telephone: 714-744-5568
E-Mail: eperez@cityoforange.org
ARTICLE 19
Claim Resolution
City and Contractor agree that the claim resolution process applicable to any claim by
Contractor in connection the Work provided herein shall be subject to the procedures set forth
in California Public Contract Code Section 9204, attached hereto as Attachment No..2, and
incorporated herein by this reference.
ARTICLE 20
%' nn n tnrna rte
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deposit in the U.S. Mail, whichever is earlier. Notices sent by e-mail shall be deemed received on
the date of the e-mail transmission.
"CONTRACTOR" "CITY"
S&H Civilworks
1801 Hilltop Drive
Colton, CA 92324
12
City of Orange
300 E. Chapman Avenue
Orange, CA 92866-1591
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CONTRACT, BONDS AND INSURANCE
APPROVED BY:
DocuSigned by:
Mary E. Binning, City Attorney
[Note: Signature of Chairman of the
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13
"CITY"
CITY OF ORANGE, a municipal corporation
Dow.Signed by:
By:
Daniel R. Slater
Mayor of the City of Orange .
ATTEST:
DowSlgned by. "
,�,VUiu�t,V f,64t,In A Deputy
for Pamela Coleman, City Clerk
"CONTRACTOR"
S&H CIVILWORKS, a California corporation
. DocuSigned by.
By:
"CITY"
CITY OF ORANGE, a municipal corporation
DowSlgned by:
By:
Daniel R. Slater
Mayor of the City of Orange .
4
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ATTACHMENT NO.1
CALIFORNIA LABOR CODE
SECTIONS 1725.5,.1771,1771.1,1771.4,1775,1776,1777.5, 1813 and 1815
Section 1725.5. Registration of contractors; mandatory registration; qualifications and application;
fees.; exempt contractors
A contractor shall be registered pursuant to this section to be qualified to bid on, be listed in a bid proposal,
subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any
public work contract that is subject to the requirements of this chapter. For the purposes of this section,
"contractor" includes a subcontractor as defined by Section 1722.1.
(a) To qualify for registration under this section, a contractor shall do all of the following:
(1)(A) Register with the Department of Industrial Relations in the manner prescribed by the department and
pay an initial nonrefundable application fee of four hundred dollars ($400) to qualify for registration under
this section and an annual renewal fee on or before July 1 of each year thereafter. The annual renewal fee
shall be in a uniform amount set by the Director of Industrial Relations, and the initial registration and renewal
fees may be adjusted no more than annually by the director to support the costs specified in Section 1771.3.
(B) Beginning June 1, 2019, a contractor may register or renew according to this subdivision in annual
increments up to three years from the date of registration. Contractors who wish to do so will be required to
prepay the applicable nonrefundable application or renewal fees to qualify for the number. of years for which
they wish to preregister.
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ATTACHMENT NO.1
CALIFORNIA LABOR CODE
SECTIONS 1725.5,.1771,1771.1,1771.4,1775,1776,1777.5, 1813 and 1815
Section 1725.5. Registration of contractors; mandatory registration; qualifications and application;
fees.; exempt contractors
A contractor shall be registered pursuant to this section to be qualified to bid on, be listed in a bid proposal,
subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any
amount eventually found due through a bond or other appropriate means.
(D) The contractor is not currently debarred under Section 1777.1 or under any other federal or state law
providing for the debarment of contractors from public works.
(E) The contractor has not bid on a public works contract, been listed in a bid proposal, or engaged in the
performance of a contract for public works without being lawfully registered in accordance with this section,
within the preceding 12 months or since the effective date of the requirements set forth in subdivision (e),
whichever is earlier. If a contractor is found to be in violation of the requirements of this paragraph, the period
of disqualification shall be waived if both of the following are true:
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(i) The contractor has not previously been found to be in violation of the requirements of this paragraph within
the preceding 12 months.
(ii) The contractor pays an additional nonrefundable penalty registration fee of two thousand dollars ($2,000).
(b) Fees received pursuant to this section shall be deposited in the. State Public Works Enforcement Fund
established by Section 1771.3 and shall be used only for the purposes specified in that section.
(c) A contractor who fails to pay the renewal fee required under paragraph (1) of subdivision (a) on or before
the expiration of any prior period of registration shall be prohibited from bidding on or engaging in the
performance of any contract for public work until once again registered pursuant to this section. If the failure
to pay the renewal fee was inadvertent, the contractor may renew its registration retroactively by paying an
additional nonrefundable penalty renewal fee equal to the amount of the renewal fee within 90 days of the
due date of the renewal fee.
(d) If, after a body awarding a contract .accepts the contractor's bid or awards the contract, the work covered
by the bid or contract is determined to be a public work to which Section 1771 applies, either as the result of
a determination by the director pursuant to Section 1773.5 or a court decision, the requirements of this section
shall not apply, subject to the following requirements:
(1) The body that awarded the contract failed, in the bid specification or in the contract documents, to identify
as a public work that portion of the work that the determination or decision subsequently classifies as a public
work.
(2) Within 20 days following service of notice on the awarding body of a determination by the Director of
Industrial Relations pursuant to Section 1773.5 or a decision by a court that the contract was for public work
as defined in this chapter, the contractor and any subcontractors are registered under this section or are
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(i) The contractor has not previously been found to be in violation of the requirements of this paragraph within
the preceding 12 months.
(ii) The contractor pays an additional nonrefundable penalty registration fee of two thousand dollars ($2,000).
(b) Fees received pursuant to this section shall be deposited in the. State Public Works Enforcement Fund
established by Section 1771.3 and shall be used only for the purposes specified in that section.
(c) A contractor who fails to pay the renewal fee required under paragraph (1) of subdivision (a) on or before
the expiration of any prior period of registration shall be prohibited from bidding on or engaging in the
performance of any contract for public work until once again registered pursuant to this section. If the failure
Section 1771. Payment of general prevailing rate
Except for public works projects of one thousand dollars ($1,000) or less, not less than the general
prevailing rate of per diem wages for work of a similar character in the locality in which the public work is
performed, and not less than the general prevailing rate of per diem wages for holiday_ and overtime work
fixed as provided in this chapter, shall be paid to all workers employed on -public works.
This section is applicable only to work performed under contract, and is not applicable to work carried
out by a public agency with its own forces. This section is applicable to contracts let for maintenance work.
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Section 1771.1. Registration as a contractor or subcontractor required prior to bid submission;
exceptions; violations; penalties
(a) A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the
requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for
public work, as defined in this chapter, unless currently registered and qualified to perform public work
pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid
that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of
the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section
1725.5 at the time the contract is awarded.
(b) Notice of the requirement described in subdivision (a) shall be included in all .bid invitations and public
works contracts, and a bid shall not be accepted nor any contract or subcontract entered into without proof of
the contractor or subcontractor's current,registration to perform public work pursuant to. Section 1725.5.
(c) An inadvertent error in listing a subcontractor who is not registered pursuant to Section 1725.5 in a bid
proposal shall not be grounds for filing a bid protest or grounds for considering the bid nonresponsive,
provided that any of the following apply:
(1) The subcontractor is registered prior to the bid opening.
(2) Within 24 hours after the bid opening, the subcontractor is registered and has paid the penalty registration
fee specified in subparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5.
(3) The subcontractor is replaced by another registered subcontractor pursuant to Section 4107 of the Public
Contract Code.
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Section 1771.1. Registration as a contractor or subcontractor required prior to bid submission;
exceptions; violations; penalties
(a) A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the
requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for
public work, as defined in this chapter, unless currently registered and qualified to perform public work
pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid
that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of
the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section
1725.5 at the time the contract is awarded.
the contractor or subcontractor shall torteit, as a civil penalty to the state, one hundred dollars (�i 1 UU) for each
day of work performed in violation of the registration requirement, not to exceed an aggregate penalty of eight
thousand dollars ($8,000) in addition to any penalty registration fee assessed pursuant to clause (ii) of
subparagraph (E) of paragraph (2) of subdivision (a), of Section 1725.5.
(h)(1) In addition to, or in lieu of, any other penalty or sanction authorized pursuant to this chapter, a higher
tiered public works contractor or subcontractor who is found to have entered into a subcontract with an
unregistered lower tier subcontractor to perform any public work in violation of the requirements of Section
1725.5 or this section shall be subject to forfeiture, as a civil penalty to the state, of one hundred dollars ($100)
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for each day the unregistered. lower tier subcontractor performs work in violation of the registration
requirement, not to exceed an aggregate penalty of ten thousand dollars ($10,000).
(2) The Labor Commissioner shall use the same standards specified in subparagraph (A) of paragraph (2) of
subdivision (a) of Section 1775 when determining the severity of the violation and what penalty to assess, and
may waive the penalty for a first time violation that was unintentional and did no~ hinder the Labor
Commissioner's ability to monitor and enforce compliance with the requirements of this chapter.
(3) A higher tiered public works contractor or subcontractor shall not be liable for penalties assessed pursuant
to paragraph (1) if the lower tier subcontractor's performance is in violation of the requirements of Section
1725.5 due to the revocation of a previously approved registration.
(4) A subcontractor shall not be liable for any penalties assessed against a higher tiered public works
contractor or subcontractor pursuant to paragraph (1). A higher tiered public works contractor or
subcontractor may not require a lower tiered subcontractor to indemnify or otherwise be liable for any
penalties pursuant to paragraph (1).
(i) The Labor Commissioner or his or her designee shall issue a civil wage and penalty assessment, in
accordance with the provisions of Section 1741, upon determination of penalties pursuant to subdivision (g) .
and subparagraph (B) of paragraph (1) of subdivision (h). Review of a civil wage and penalty assessment
issued under this subdivision may be requested in accordance with the provisions of Section 1742. The
regulations of the Director of Industrial Relations, which govern proceedings for review of civil wage and
penalty assessments and the withholding of contract payments under Article 1 (commencing with Section
1720) and Article 2 (commencing with Section 1770), shall apply.
0)(1) Where a, contractor or subcontractor engages in the performance of any public work contract without
havinv heen reai0e.red in vinistinn. of the re. mirementc of Section 1775.5 or this- cectinn_ the Tahnr
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for each day the unregistered. lower tier subcontractor performs work in violation of the registration
requirement, not to exceed an aggregate penalty of ten thousand dollars ($10,000).
(2) The Labor Commissioner shall use the same standards specified in subparagraph (A) of paragraph (2) of
subdivision (a) of Section 1775 when determining the severity of the violation and what penalty to assess, and
may waive the penalty for a first time violation that was unintentional and did no~ hinder the Labor
Commissioner's ability to monitor and enforce compliance with the requirements of this chapter.
(3) A higher tiered public works contractor or subcontractor shall not be liable for penalties assessed pursuant
to paragraph (1) if the lower tier subcontractor's performance is in violation of the requirements of Section
1725.5 due to the revocation of a previously approved registration.
(ii) If the contractor or subcontractor has no address on file with the Secretary of State or the Contractors'
State License Board, the address of the site of the public work.
(3) The stop order shall be effective immediately upon service and shall be subject to appeal by the parry
contracting with the unregistered contractor or subcontractor, by the unregistered contractor or subcontractor,
or both. The appeal, hearing, and any, further review of the hearing decision shall be governed by the
procedures, time limits, and other requirements specified in subdivision (a) of Section 238.1.
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(4) Any employee of an unregistered contractor or subcontractor who is affected by a work stoppage ordered
by the commissioner pursuant to this subdivision shall be paid at his or her regular hourly prevailing wage
rate by that employer for any hours the employee would have worked but for the work stoppage, not to exceed
10. days.
(k) Failure of a contractor or subcontractor, owner, director, officer, or managing agent of the contractor or
subcontractor to observe a stop order issued and served upon him or her pursuant to subdivision 0) is guilty
of a misdemeanor punishable by imprisonment in county jail not exceeding 60 days or by a fine not exceeding
ten thousand dollars ($10,000), or both.
(1) This section shall apply to any bid proposal submitted on or after March 1, 2015, and any contract for
public work entered into on or after April 1, 2015. This section shall also apply to the performance of any
public work, as defined in this chapter, on or after January 1, 2018, regardless of when the contract for public
work was entered.
(m) Penalties received pursuant to this section shall be deposited in the State Public Works Enforcement Fund
established by Section 1771.3 and shall be used only for the.purposes specified in that section.
(n) This section shall not apply to work performed on a public works project of twenty-five thousand dollars
($25,000) or less when the project is for construction, alteration, demolition, installation, or repair work or to
work performed on a public works project of fifteen thousand dollars ($15,000) or less when the project is for
maintenance work.
Section 1771.4. Additional requirements when bidding and awarding public works contracts
(a) All of the following are applicable to all public works projects that are otherwise subject to the
rPmi;ramente of this clkantPr-
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(4) Any employee of an unregistered contractor or subcontractor who is affected by a work stoppage ordered
by the commissioner pursuant to this subdivision shall be paid at his or her regular hourly prevailing wage
rate by that employer for any hours the employee would have worked but for the work stoppage, not to exceed
10. days.
(k) Failure of a contractor or subcontractor, owner, director, officer, or managing agent of the contractor or
subcontractor to observe a stop order issued and served upon him or her pursuant to subdivision 0) is guilty
of a misdemeanor punishable by imprisonment in county jail not exceeding 60 days or by a fine not exceeding
ten thousand dollars ($10,000), or both.
(1) This section shall apply to any bid proposal submitted on or after March 1, 2015, and any contract for
a project ror wmcn registration is notrequtrea oecause or suoarvision-ki1 or aection 1-1Lo.o, the unregistereu
contractor or subcontractor is not required to furnish the records specified in Section 1776 directly to the
Labor Commissioner but shall retain the records specified in Section 1776for at least three years after
completion of the work.
(5) The department shall undertake those activities it deems necessary to monitor and enforce compliance
with prevailing wage requirements.
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(b) The Labor Commissioner may exempt a public works project from compliance with all or part of the
requirements of subdivision (a) if either of the following occurs:
(1) The awarding body has enforced an approved labor compliance program, as defined in Section 1771.5, on
all public works projects under its authority, except those deemed exempt pursuant to subdivision (a) of
Section 1771.5, continuously since December 31, 2011.
(2) The awarding body has entered into a collective bargaining agreement that binds all contractors performing
work on the project and that -includes a mechanism for resolving disputes about the payment of wages.
(c) The requirements of paragraph.(1) of subdivision (a) shall only apply to contracts for public works projects
awarded on or after January 1, 2015.
(d) The requirements of paragraph (3) of subdivision (a) shall apply to all contracts for public work, whether
new or ongoing, on or after January 1, 2016.
Section 1775. Penalties for violations
(a)(1) The contractor and any subcontractor under the contractor shall, as a penalty to the state or political
subdivision on whose behalf the contract is made or awarded, forfeit not more than two hundred dollars ($200)
for each calendar day, or portion thereof,. for each worker paid less than the prevailing wage rates as
determined by the director for the work or craft in which the worker is employed for any public work 'done
under the contract by the contractor or, except as. provided in subdivision (b), by any subcontractor under the
contractor.
(2)(A) The amount of the penalty shall be determined by the Labor Commissioner based on consideration of
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(b) The Labor Commissioner may exempt a public works project from compliance with all or part of the
requirements of subdivision (a) if either of the following occurs:
(1) The awarding body has enforced an approved labor compliance program, as defined in Section 1771.5, on
all public works projects under its authority, except those deemed exempt pursuant to subdivision (a) of
Section 1771.5, continuously since December 31, 2011.
(2) The awarding body has entered into a collective bargaining agreement that binds all contractors performing
work on the project and that -includes a mechanism for resolving disputes about the payment of wages.
g wafge "a e;71i 1��ie�coni actor Sut'ncontractorrYiSs Deen a'ssesseQ penalties
within the previous three years for failing to meet its prevailing wage obligations on a separate contract, unless
those penalties were subsequently withdrawn or overturned.
(iii) The penalty may not be less than one hundred twenty dollars ($120) for each calendar day, or portion
thereof, for each worker paid less. than the prevailing wage rate, if the Labor Commissioner determines that
the violation was willful, as defined in subdivision (c) of Section 1777.1.
(C) If the amount due under this section is collected from the contractor or subcontractor, any outstanding
wage claim under Chapter 1 (commencing with Section 1720) of,Part 7 of Division 2 against that contractor
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or subcontractor shall be satisfied before applying that amount to the penalty imposed on that contractor or
subcontractor pursuant to this section.
(D) The determination of the Labor Commissioner as to the amount of the penalty shall be reviewable only
for abuse of discretion.
(E) The difference between the prevailing wage rates and the amount paid to each worker for each calendar
day or portion thereof for which each workermas paid less than the prevailing wage rate shall be paid to each
worker by the contractor or subcontractor, and the body awarding the contract shall cause to be inserted in the
contract a stipulation that this section will be complied with.
(b) If a worker employed by a subcontractor on a public works project is not paid the general prevailing rate
of per diem wages by the subcontractor, the prime contractor of the project is not liable for any penalties under
subdivision (a) unless the prime contractor had knowledge of that failure of the subcontractor to pay the
specified prevailing rate of wages to those. workers or unless the prime contractor fails to comply with all of
the following requirements:
(1) The contract executed between the contractor and the subcontractor for the performance of work on the
public works project shall include a copy of the provisions of this section and Sections 1771, 1776, 1777.5,
1813, and 1815.
(2) The contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the
subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor.
(3) Upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing
rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but
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or subcontractor shall be satisfied before applying that amount to the penalty imposed on that contractor or
subcontractor pursuant to this section.
(D) The determination of the Labor Commissioner as to the amount of the penalty shall be reviewable only
for abuse of discretion.
(E) The difference between the prevailing wage rates and the amount paid to each worker for each calendar
day or portion thereof for which each workermas paid less than the prevailing wage rate shall be paid to each
worker by the contractor or subcontractor, and the body awarding the contract shall cause to be inserted in the
contract a stipulation that this section will be complied with.
buuuI lly 11LU11UU1, W U11S l aJJ111UauV11,' JU al�,'11L L1111G allu V V Gl L11110 11V U15 W Uiilvu aawi uay auu W vcin, auu L11G
actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or
her in connection. with the public work. Each payroll record shall contain or be verified by a written
declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct.
(2) The employer has complied with the requirements of Sections 1771, 1811, and 1815 for any work
performed by his or her employees on. the public works project.
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(b) The payroll records enumerated under subdivision (a) shall be certified and shall be available for inspection
at all reasonable hours.at the principal office of the contractor on the following basis:
(1) A certified copy of an employee's payroll record shall be made available for inspection or furnished to the
employee or his or her authorized representative on request.
(2) A certified copy of all payroll records enumerated in subdivision (a) shall be made available for inspection
or furnished upon request to a representative of the body awarding the contract and the Division of Labor
Standards Enforcement of the Department of Industrial Relations.
(3) A certified copy of all payroll records enumerated in subdivision (a) shall be made available upon request
by the public for inspection or for copies thereof. However, a request by the public shall be made through
either the body awarding the contract or the Division of Labor Standards Enforcement. If the requested payroll
records have not been provided pursuant to paragraph (2), the requesting party shall, prior to being provided
the records, reimburse the costs of preparation by the contractor, subcontractors, and the entity through which
the request was made. The public may not be given access to the records at the principal office of the
contractor.
(c) Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of
subdivision (a) of Section 1771.4, the certified payroll records shall be on forms provided by the Division of
Labor Standards Enforcement or shall contain the same information as the forms provided by the division.
The payroll records may consist of printouts of payroll data that are maintained as computer records, if the
printouts contain the same information as the forms provided by the division and the printouts are verified in
the manner specified in subdivision (a).
(d) A contractor or subcontractor shall file a certified copy of the records enumerated in subdivision (a) with
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(b) The payroll records enumerated under subdivision (a) shall be certified and shall be available for inspection
at all reasonable hours .at the principal office of the contractor on the following basis:
(1) A certified copy of an employee's payroll record shall be made available for inspection or furnished to the
employee or his or her authorized representative on request.
(2) A certified copy of all payroll records enumerated in subdivision (a) shall be made available for inspection
or furnished upon request to a representative of the body awarding the contract and the Division of Labor
Standards Enforcement of the Department of Industrial Relations.
31 A certified cony. of all navroll records enumerated in subdivision (a) shall be ade avai1able upon re u_ st
(t)(1) Notwithstanding any other provision of law, agencies that are included in t ie Joint Enforcement Sutn�ce
Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance
Code and other law enforcement agencies investigating violations of law shall, upon request, be provided
nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for
inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike
Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be
marked or redacted to prevent disclosure of an individual's name, address, and social security number.
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(2) An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in
good faith in compliance with this subdivision.
(g) The contractor shall inform the body awarding the contract of the location of the records enumerated under
subdivision (a), including the street address, city, and county, and shall, within five working days, provide a
notice of a change of location and address.
(h) The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice
requesting the records enumerated in subdivision (a). In the event that the contractor or subcontractor fails to
comply within the 10-day period, he or she shall, as a penalty to the state or political subdivision on whose
behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each calendar day, or portion
thereof, for each worker, untilstrict compliance is effectuated. Upon the request of the Division of Labor
Standards Enforcement, these penalties shall 'be withheld from progress payments then due. A contractor is
not subject to a penalty assessment pursuant to this section due to the failure of a subcontractor to comply
with this section.
(i) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this
section.
0) The director shall adopt rules consistent with the California Public Records Act (Chapter 3.5 (commencing
with Section 6250) of Division 7 of Title 1 of the Government Code) and the Information Practices Act of
1977 (Title 1.8 (commencing with Section 1798) of Part 4 of Division 3 of the Civil Code) governing the
release of these records, including the establishment of reasonable fees to be charged for reproducing copies
of records required by this section.
Section. 1777.5. Employment of registered apprentices; wages; standards; number; apprenticeable
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(2) An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in
good faith in compliance with this subdivision.
(g) The contractor shall inform the body awarding the contract of the location of the records enumerated under
subdivision (a), including the street address, city, and county, and shall, within five working days, provide a
notice of a change of location and address.
(h) The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice
requesting the records enumerated in subdivision (a). In the event that the contractor or subcontractor fails to
comply within the 10-day period, he or she shall, as a penalty to the state or political subdivision on whose
behalf the o° emaotois made oleaa awarded hundred noel �$SOO �f�neuie calendar da�IorlBoirition
P PP P P P P Y
activity, including travel time to and from the required activity, if any, at the prevailing rate of per diem wages
for apprentices in the trade to which he or she is registered. Unless otherwise provided by a collective
bargaining agreement, a contractor is not required to compensate an apprentice for the time spent on
preemployment activities if the apprentice is required to take a preemployment drug or alcohol test. and he or
she fails to pass that test.
(o) Only apprentices, as defined in Section 3077, who are in training under apprenticeship standards that have
been approved by the Chief of the Division of Apprenticeship Standards and who are parties to written
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apprentice. agreements under Chapter 4 (commencing with Section 3070) of Division 3 are eligible to be
employed at. the apprentice wage rate on public works. The employment and training of each apprentice shall
be in accordance with either of the following:
(1) The apprenticeship standards and apprentice agreements under which he or she is training.
(2) The rules and regulations of the California Apprenticeship Council.
(d) If the contractor to whom the contract is awarded by the state or any political subdivision, in performing
any of the work under the contract, employs workers in any apprenticeable craft or trade, the contractor shall
employ apprentices in at least the ratio set forth in this section and may apply to any apprenticeship program
in the craft or trade that can provide apprentices to the site of the public work for a certificate approving the
contractor under the apprenticeship standards for the employment and training of apprentices in the area or
industry affected. However, the decision of the apprenticeship program to approve or deny a certificate shall
be subject to review by the Administrator of Apprenticeship.' The apprenticeship program or programs, upon
approving the contractor, shall arrange for the dispatch of apprentices to the contractor. A contractor covered
by an apprenticeship program's standards shall not be required to submit any additional application in order
to include additional public works contracts under that program. "Apprenticeable craft or trade," as used in
this section, means. a craft or trade determined as an apprenticeable occupation in accordance with rules and
regulations prescribed by the California Apprenticeship .Council. As used in this section, "contractor"
includes any subcontractor under a contractor who performs any public works not excluded by subdivision.
(o)•
(e) Before commencing work on a contract for public works, every contractor shall submit contract award
information to an applicable apprenticeship program that can supply apprentices to the site of the public work.
The information submitted shall include an estimate of ioumevman hours to be performed under the contract,
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apprentice. agreements under Chapter 4 (commencing with Section 3070) of Division 3 are eligible to be
employed at. the apprentice wage rate on public works. The employment and training of each apprentice shall
be in accordance with either of the following:
(1) The apprenticeship standards and apprentice agreements under which he or she is training.
(2) The rules and regulations of the California Apprenticeship Council.
(d) If the contractor to whom the contract is awarded by the state or any political subdivision, in performing
any of the work under the contract, employs workers in any apprenticeable craft or trade, the contractor shall
employ apprentices in at least the ratio set forth in this section and may apply to anv apprenticeship program
(h) This ratio of apprentice work to journeyman work shall apply during any day or portion of a day when
any journeyman is employed at the jobsite and shall be computed on the basis of the hours worked during the
day by journeymen.so employed. Any work performed by a journeyman in excess of eight hours per day or
40 hours per week shall not be used to calculate the ratio. The contractor shall employ apprentices for the
number of hours computed as above before the end of the contract or, in the case of a subcontractor, before
the end of the subcontract. However, the contractor shall endeavor, to the greatest extent possible, to employ
apprentices during the same time period'that the journeymen in the same craft or trade are employed at the
jobsite. When an hourly apprenticeship ratio is not feasible for a particular craft or trade, the Administrator
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of Apprenticeship, upon application of an apprenticeship program, may order a minimum ratio of not less
than one apprentice for each five journeymen in a craft or trade classification.
(i) A contractor covered by this section who has agreed to be covered by an apprenticeship program's standards
upon the issuance of the approval certificate, or who has been previously approved for an apprenticeship
program in the craft or trade, shall employ the number of apprentices or the ratio of apprentices to journeymen
stipulated in the applicable apprenticeship standards, but in no event less than the 1-to-5 ratio required by
subdivision (g).
0) Upon proper showing by a contractor that he or she employs apprentices in a particular craft or trade in the
state on all of his or her contracts on an annual average of not less than one hour of apprentice work for every
five hours of labor performed by journeymen, the Administrator of Apprenticeship may grant a certificate
exempting the contractor from the 1-to-5 hourly ratio, as set forth in this section for that craft or trade.
(k) An apprenticeship program has the discretion to grant to a participating contractor or contractor association
a certificate, which shall be subject to the approval of the Administrator of Apprenticeship, exempting the
contractor from the 1-to-5 ratio set forth -in this section when it finds that any one of the following conditions
is met:
(1) Unemployment for the previous three-month period in the area exceeds an average of 15 percent.
(2) The number of apprentices in training in the area exceeds a ratio of 1 to 5.
(3) There is a showing that.the apprenticeable craft or trade is replacing at least one -thirtieth of its journeymen
annually through apprenticeship training, either on a statewide basis or on a local basis.
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of Apprenticeship, upon application of an apprenticeship program, may order a minimum ratio of not less
than one apprentice for each five journeymen in a craft or trade classification.
(i) A contractor covered by this section who has agreed to be covered by an apprenticeship program's standards
upon the issuance of the approval certificate, or who has been previously approved for an apprenticeship
program in the craft or trade, shall employ the number of apprentices or the ratio of apprentices to journeymen
stipulated in the applicable apprenticeship standards, but in no event less than the 1-to-5 ratio required by
subdivision (g).
0) Upon proper showing by a contractor that he or she employs apprentices in a particular craft or trade in the
state on all of his or her contracts on an annual average of not less than one hour of apprentice work for every
contributions in computing his or her bid for the contract.
(2)(A) At the conclusion of the 2002-03 fiscal year and each fiscal year thereafter, the California
Apprenticeship Council shall distribute training contributions received by the council under this subdivision,
less the expenses of the Department of Industrial Relations for administering this subdivision, by making
grants to approved apprenticeship programs for the purpose of training apprentices. The grant funds shall be
distributed as follows:
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(i) If there is an approved multiemployer apprenticeship program serving the same craft or - trade and
geographic area for which the training contributions were made to the council, a grant to that program shall
be made.
(ii) If there are two or more approved multiemployer apprenticeship programs serving the same craft or trade
and county for which the training contributions were made to the'council, the grant shall be divided among
those programs based on the number of apprentices from that county registered in each program.
(iii) All training contributions not distributed under clauses (i) and (ii) shall be used to. defray the future
expenses of the Department of Industrial Relations for the administration and enforcement of apprenticeship
and preapprenticeship standards and requirements under this code.
(B) An apprenticeship program shall only be eligible to receive grant funds pursuant to this subdivision if the
apprenticeship program agrees, prior to the receipt of any grant funds, to keep adequate records that document
the expenditure of grant funds and to make all records available to the Department of Industrial Relations so
that the Department of Industrial Relations is able to verify that grant funds were used solely for training
apprentices. For purposes of this subparagraph, adequate records include, but are not. limited to, invoices,
receipts, and canceled checks that account for the expenditure of grant funds. This subparagraph shall not be
deemed to require an apprenticeship program to provide the Department of Industrial Relations with more
documentation than is necessary to verify the appropriate expenditure of grant funds made pursuant to this
subdivision.
(C) The Department of Industrial Relations shall verify that grants made pursuant to this subdivision are used
solely to fund training apprentices. If an apprenticeship program is unable to demonstrate how grant funds
are expended.or if an apprenticeship program is found to be using grant funds for purposes other than training
apDrentices. then the aDDrenticeshiD moaram shall not be eligible to receive anv future grant pursuant to this
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(i) If there is an approved multiemployer apprenticeship program serving the same craft or - trade and
geographic area for which the training contributions were made to the council, a grant to that program shall
be made.
(ii) If there are two or more approved multiemployer apprenticeship programs serving the same craft or trade
and county for which the training contributions were made to the'council, the grant shall be divided among
those programs based on the number of apprentices from that county registered in each program.
(iii) All training contributions not distributed under clauses (i) and (ii) shall be used to. defray the future
expenses of the Department of Industrial Relations for the administration and enforcement of apprenticeship
and nrennnrenticechin OnnrinrciR nnrl rennirementc ender thic n.nde
(p) An awarding body that implements an approved labor compliance program in accordance with subdivision
(b) of Section 1771.5 may, with the approval of the director, assist in the enforcement of this section under
the terms and conditions prescribed by the director.
Section 1813. Forfeiture for violations; contract stipulation; report of violations
The contractor or subcontractor shall, as a penalty to the state or political subdivision on whose behalf the
contract is made or awarded, forfeit twenty- five dollars ($25) for each worker employed in the execution of
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the contract by the respective contractor or subcontractor for each calendar day during which the worker is
required or permitted to work more than 8, hours in any one calendar 'day and 40 hours in any one calendar
week in violation of the provisions of this article. In awarding any contract for public work, the awarding
body shall cause to be inserted in the contract a stipulation to this effect. The awarding body shall take
cognizance of all violations of this article committed in the course of the execution of the contract, and shall
report them to the Division of Labor. Standards Enforcement.
Section 1815. Overtime
Notwithstanding the provisions of Sections 1810 to 1814, inclusive, of this code, and notwithstanding any
stipulation inserted in any contract pursuant to the requirements of said sections, work performed by
employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted
upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than 1
times the basic rate of pay.
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the contract by the respective contractor or subcontractor for each calendar day during which the worker is
required or permitted to work more than 8, hours in any one calendar 'day and 40 hours in any one calendar
week in violation of the provisions of this article. In awarding any contract for public work, the awarding
body shall cause to be inserted in the contract a stipulation to this effect. The awarding body shall take
cognizance of all violations of this article committed in the course of the execution of the contract, and shall
report them to the Division of Labor. Standards Enforcement.
Section 1815. Overtime
Notwithstanding the provisions of Sections 1810 to 1814, inclusive, of this code, and notwithstanding any
efir�nlatinn inaarfarl in Qnv 0nn4rnn4 "nramion* fn *ha ramiiram ante of oaid oanfinne cvnrlr "arpnrmarl 117
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ATTACHMENT NO.2
CALIFORNIA PUBLIC CONTRACT CODE SECTION 9204
Section 9204. Legislative findings and declarations regarding timely and complete payment of
contractors for public works projects; claims -process (Eff. January 1; 2017) -
(a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that
all construction business performed on a public works project in the state that is complete and not in dispute
is paid in full and in a timely manner.
(b) Notwithstanding any other law, including, but not limited to, Article 7.1(commencing with Section 10240)
of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing
with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection
with a public works project.
(c) For purposes of this section:
(1) "Claim" means a separate demand by a contractor sent by registered mail or certified mail with return
receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed
by a public entity under a contract for a public works project.
(B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the
contractor pursuant to the contract for a public works proj ect and payment for which is not otherwise expressly
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ATTACHMENT NO.2
CALIFORNIA PUBLIC CONTRACT CODE SECTION 9204
Section 9204. Legislative findings and declarations regarding timely and complete payment of
contractors for public works projects; claims -process (Eff: January 1; 2017) -
(a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that
all construction business performed on a public works project in the state that is complete and not in dispute
is paid in full and in a timely manner.
(i) The Department of Water Resources as to any project under the jurisdiction of that department.
(ii) The Department of Transportation as to any project under the jurisdiction of that department.
(iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department.
(iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction
pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code.
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(v) The Military Department as to any project under the jurisdiction of that department.
(vi) The Department of General Services as to all other projects.
(vii) The High -Speed Rail Authority.
(4) "Public works project" means the erection, construction, alteration, repair, or improvement of any public
structure, building, road, or other public improvement of any kind.
(5) "Subcontractor" means any type of contractor within the meaning of Chapter 9 (commencing with Section
7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or
is a lower tier subcontractor.
(d)(1)(A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall
conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant
a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon
receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided
in this subdivision.
(B) The claimant shall furnish reasonable documentation to support the claim.
(C) If the public entity needs approval from its governing body to provide the claimant a written statement
identifying the disputed portion and the undisputed portion of the claim, and the governing body does not
meet within the 45 days or within the mutually agreed to, extension of time following receipt of a claim sent
by registered mail or certified mail, return receipt requested, the public entity shall have up to three days
following the next duly publicly noticed nieeting'of the governing body after the 45-day period, or extension,
expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion.
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(v) The Military Department as to any project under the jurisdiction of that department.
(vi) The Department of General Services as to all other projects.
(vii) The High -Speed Rail Authority.
(4) "Public works project" means the erection, construction, alteration, repair, or improvement of any public
structure, building, road, or other public improvement of any kind.
(5) "Subcontractor" means any type of contractor within the meaning of Chapter 9 (commencing with Section
7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or
is a lower tier subcontractor_
issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall
be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs
equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the
disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each
party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with
regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective
mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of
the claim remaining in dispute shall be subject to applicable procedures outside this section.
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(C) For purposes of this section, mediation includes any nonbinding process, including, but not limited to,
neutral evaluation or a dispute review board, in which an independent third party or board assists the parties
in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform
to the timeframes in this section.
(D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted
pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation
has been commenced.
(E) This section does not preclude a public entity from requiring arbitration of disputes under private
arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve
the parties' dispute.
(3) Failure by the public entity to respond to a claim from a contractor within the time periods described in
this subdivision or to otherwise meet the time requirements of this section shall result in the claim being
deemed rejected in its entirety. A claim that is denied by reason of the public entity's failure to have responded
to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse
finding with regard to the merits of the claim or the responsibility or qualifications of the claimant.
(4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum.
(5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity
because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of
a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on their own behalf
or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed
by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor
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(C) For purposes of this section, mediation includes any nonbinding process, including, but not limited to,
neutral evaluation or a dispute review board, in which an independent third party or board assists the parties
in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform
to the timeframes in this section.
(D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted
pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation
has been commenced.
(E) This section does not preclude a public entity from requiring arbitration of disputes under private
arhitrsticin or the Public Works Contract Arbitration Program- if mediation under this section does not resolve
(g) This section applies to contracts entered into on or after January 1, 2017.
(h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available
through. a competitive application process, for the failure of an awardee to meet its contractual obligations.
(i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2027, deletes or extends that date.
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