Contractors - Doing Business with MID

Contractors working on MID Public Works Projects are subject to the requirements of California's SB 854:

  • For all “Public works” projects over $1,000 (including labor and materials), the payment of prevailing wages must be paid per CA State Labor Code Chapter 1, Section 1720, Part 7, Division 2. See Prevailing Wage Requirements HERE.
  • Apprenticeship – Affects most projects over $30,000 and requires many trades to have one Apprentice Hour for every five Journeyman Hours.
  • Annually, contractors & subcontractors must pay a fee and register with the State of California Department of Industrial Relations (DIR) and meet a minimum qualification standard.
  • This registration also affects companies that perform work that does not require a contractor’s license. (i.e. temporary labor providers, calibration of equipment onsite, testing of fixed fall protection.)
  • MID verifies that all contractors and subcontractors are on the DIR approved list.

Public Works Projects are defined as Construction, alteration, demolition, installation, or repair work done under contract and paid in whole or in part out of public funds. It can include preconstruction and post-construction activities related to a public works project. For a full definition of public works refer to Labor Code section 1720.

Contractors must also:

  • Certify and provide proof of Workers’ Compensation insurance.
  • Must be in good standing and can not be under federal or state debarment.
  • Have a valid contractor’s license if necessary for the trade.
  • Contractors and subcontractors must submit certified payroll electronically to the DIR.
  • Must have NO delinquent unpaid wage or penalty assessments owed to any employee of enforcement agency.

For more information on SB 854 CLICK HERE

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