10 Things You Should Know About Hiring Contractors and SB 854

California Senate Bill SB 854 took effect on June 30, 2014 and fundamentally changed the way Public Works projects are administered in California. This change affects TID as any project undertaken by the District or,by ALL Improvement Districts, including, pipeline, ditch, pump, drains, sub-surface drains and pressurized micro systems seeking reimbursement from District administered assessment funds for improvements or repairs made, are considered a Public Works Project and must abide by its requirements.

If you’re considering hiring a contractor to perform work and then utilizing District assessment funds for reimbursement, then you are subject to the provisions of the law.

Here are some of the ways SB 854 affects TID projects:

  • 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.
  • 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.)
  • TID must verify that all contractors and subcontractors are on the DIR approved list.

Registered contractors must also:

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

For more information on SB 854 and it’s requirements, click here.

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