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Business Consumer Alliance Blog

New Laws and Resources for CA Contractors

As of July 2014, California law requires that prime contractors bidding on public works projects must disclose the Contractor State License Board (“CSLB”) license numbers of their subcontractors. The purpose of this law is to require public entities to verify that the listed subcontractors hold an active license and are in good standing with the CSLB.

New CA Contractor Laws 2014

Contractors that plan to bid on public works contracts in California are now required to register and complete requirements using a new online application provided by the California State Department of Industrial Relations (“DIR”). Contractors who bid on public works jobs must verify that they hold a CSLB-issued contractor license, maintain workers' compensation insurance coverage for all employees, and only hire subcontractors who are registered public works contractors. In addition, licensed contractors cannot have been barred from working on public works projects by the state or federal government, or owe delinquent wage or penalty assessments to employees or a public agency. There is a $300 non-refundable fee for the application and renewal. Agencies that administer public works programs have access to a searchable database of qualified contractors.

Lastly, the California Department of General Services (DGS) Real Estate Services and Procurements divisions are offering a variety of construction-related jobs for contractors who become certified as a Small Business and Disabled Veterans Business Enterprise (“OSDS”). Opportunities include general construction, heating, ventilation and air conditioning, concrete work, plumbing, and flooring jobs, to name a few. The contracting work is part of general repair and maintenance for statewide DGS-controlled buildings and grounds. Certified businesses are granted certain benefits during the bidding process.

DGS also holds statewide OSDS outreach events throughout the year to acquaint business owners with the certification process and how to find state government work. A schedule of events for 2014-2015 and more information on these programs is available on the DGS website.


About Business Consumer Alliance:

Business Consumer Alliance (BCA) is a non-profit which started in 1936. The broad purpose of BCA is to promote business self regulation. BCA's mission is achieved by assisting consumers in resolving complaints with businesses and using that complaint information along with other relevant information like customer reviews to forecast business reliability. With community support, BCA can identify trustworthy and ethical businesses and warn the public to avoid unscrupulous businesses whose purpose is to defraud the marketplace. BCA obtains its funding from member businesses who support the mission and purpose of the organization and who agree to abide by high standards of ethical business practices.