IMPACTS OF SB 854 ON SCHOOL DISTRICTS

December 9, 2014San Diego County Office of Education

ESFG Meeting

Tyree Dorward: Attorney, Best, Best, & KriegerGuiselle Carreon: Commercial Warrants & Accounts Payable Manager, SDCOE

Commissioner, Calif. Uniform Construction Cost Accounting Commission

Will be phased in as noted earlier.

Will likely affect workload in Facilities, Maintenance, and/or Purchasing Department and possibly IT Department

Will require coordination of small public projects.

Will require closer monitoring of contractors and subcontractors.

IMPACTS OF SB854

If you have not done so already, begin filing a PWC100 on all public projects over $1,000.

Before January 2015, review and update bidding and contract documents to incorporate required language including Prequalification questionnaire.

Notice to Bidders and/or Information for Bidders -

• No contractor or subcontractor may be listed on a bid proposal for a public works project (submitted on or after March 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

IMPACTS OF SB854

• No contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.

• This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

• Subcontractor Listing - Add the DIR Registration Number to your subcontractor form.

• Certification of Registration: Incorporate a certification of registration (See sample.)

Remember to update your small contract for work under $15,000 ($45,000 for CUPCCAA districts).

IMPACTS OF SB854

CUPCCAA Districts: Remember to change the notice published in November to differentiate between registering for CUPCCAA and registering under the DIR Program. Sample language to add to Public Notice (See sample notice and registration form):

SB 854 became effective July 1, 2014, and requires contractors to register with the Department of Industrial Relations prior to bidding on public works projects. This registration does not fulfill that requirement. For information regarding SB 854 please go to: https://www.dir.ca.gov/Public-Works/PublicWorksLawsRegsDetDec.html

IMPACTS OF SB854

Requires verification of DIR registration status of contractors and subcontractors for all projects above $1,000: https://efiling.dir.ca.gov/PWCR/Search

Check for debarred contractors: http://www.dir.ca.gov/dlse/debar.html

Requires training of Facilities staff, program and project managers, construction managers, Maintenance & Operations staff, etc. to ensure compliance.

IMPACTS OF SB854 cont’d

Requires revamping of emergency contracts procedures to comply with registration requirement.

Requires school district to post or require the contractor to post job site notices.

Will require updating of bid and contract documents in the future to notify contractors of posting of job site notices (date to be determined).

IMPACTS OF SB854 cont’d

Districts must create a profile on the DIR’s website to enter projects. https://www.dir.ca.gov/pwc100ext/ and enter project information online.

PWC 100

Enter Project information including statute for labor compliance and funding source:

PWC 100 (cont’d)

Enter contact and contractor information including labor trades to be used:

PWC 100 cont’d

File a PWC 100 for all maintenance, repair, and public works projects for which the labor is subject to prevailing wage, including but not limited to the following:

• Trade labor such as carpentry, asphalt repair and replacement, concrete, low voltage, electrical, etc.

• Maintenance projects including elevator repair, HVAC repair, landscaping services, plumbing repairs, carpeting repairs etc.

• Inspection, surveying, testing, etc. • Waste haulers for public works projects.• Installation of cabling for IT using a low voltage contractor.• Work performed using Lease-leaseback.

Reminder: Contractors will be required to submit CPRs. A PWC 100 will need to be in place to match the project to the submittals.

PWC 100 cont’d

SB 854 impacts all public works agreements subject to prevailing wages.

For districts with a large number of contracts; this will mean an increased workload.

The requirement for labor compliance is not eliminated for State Facilities Fund projects.

THE BOTTOM LINE

In order to stay on top of your projects and ensure compliance with all the old and new requirements for public works projects, it is important to manage your project schedule.

PROJECT MANAGEMENT

SAMPLE BID SCHEDULE SEPTEMBER 2014

Bid Worksheet Due to Purchasing July 4, 2014

Plans and Specifications to Printer July 11, 2014

15-Day Notice to Bidders/Plan Rooms July 11, 2014

Advertising Dates July 14 & 21, 2014

Pre-bid Conference & Sitewalk July 31, 2014

Deadline for Submitting Prequalification Applications

August 5, 2014

Substitution Requests Due August 11, 2014

Questions due from Bidders August 11, 2014

Deadline for Approval & Posting of Prequalified Bidders

August 14, 2014

FINAL Addendum to Bidders August 15, 2014

Open Bids August 19, 2014

Verification of Bid Documents / Contractor / Subcontractor License and Registration

August 20, 2014

Board Topics Due August 22, 2014

Protest Period Ends August 26, 2014

Final Board Items August 27, 2014

Preliminary Notice of Award August 27, 2014

Contract Submittals due to District September 10, 2014

Governing Board – Bid Award September 11, 2014 (Tentative)

Verification of Contract Documents / Bonds / Insurance / Certifications / Fingerprinting

September 12, 2014

Preconstruction/LCP Meeting TBD

Technical Submittals due to Architect TBD

Notice to Proceed September 12, 2014

Start Date: September 15, 2014

File PWC 100 September 21, 2014 (or sooner)

Project Completion Date: November 18, 2014

Facility Planner/Project Manager Janice Doe, District Project Superintendent

Construction Manager John Doe, ABC Construction Management

District

Architect/CM

Program Manager

Contractors

For any questions please call:

Guiselle Carreonguiselle.carreon@sdcoe.net(858) 292-3602Commercial Warrants Audit & Accounts Payable ManagerSan Diego County Office of Education

QUESTIONS