Welcome to our newsletter! You will find important updates and industry related news, along with upcoming speaking events and educational opportunities. Thank you for your interest in CCMI.
Sincerely,
Deborah Wilder
CCMI President
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WHATS NEW?
Skilled and Trained Workforce Imposes New Challenges for California Contractors
AB 693 passed by the California legislature in 2016 requires that a contractor's
workforce be comprised of a certain percentage of skilled and trained workers when performing Design Build or Lease/leaseback work. The requirements are that the contractor's workforce must have a certain percentage of graduates from a California approved apprenticeship program or have equivalent number of working hours with equivalent experience.
The percentage requirements are:
- At least 30% by January 1, 2017.
- At least 40% by January 1, 2018.
- At least 50% by January 1, 2019.
- At least 60% by January 1, 2020.
In 2017 an amendment was passed which caps the percentage at 30% for approximately 15 trades.
Currently each individual School District is charged with enforcing this requirement. This results in a variety of enforcement actions. Some Districts are only accepting an apprenticeship certificate while others will accept documentation of equivalent hours worked in the trades. The law allows the School District to withhold funds if they deem the requirement has not been met.
While this requirement is limited to School Districts and specific types of contacts, there is concern that this requirement could be expanded in the future
to other types of projects or to other agencies. There is also legislation pending which would provide the DIR with the ability to review and administer this law, along with a hefty penalty for contractors who do not meet these requirements.
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UPCOMING EVENTS - Training and Seminars
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FROM THE INBOX....
You asked, we answered!
QUESTION:
California's AB 1701 extends prime contractor liability for wages and fringes on all construction projects to all sub-tier workers. Are there any thresholds or exemptions?
ANSWER:
Actually, a prime contractor is now liable for wages and fringes that are unpaid by subcontractors or sub-tier subcontractors on all projects (private as well as public). Prime contractors have always had this liability on public works projects. Now this liability has been expanded to include all construction projects (including privately funded projects). There is no minimum threshold; this applies to all projects. The statute of limitations is 1 year after completion of the project. These claims can be brought by the California Labor Commissioner, a Joint Labor Management Committee or a third party benefit fund. In addition
to wages and fringe benefits, a prime contractor is also liable for interest, attorneys fees and expert witness costs.
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CCMI is not just another firm....
We are not merely a "consulting" firm, but rather a team of individuals who understand the needs of the Public Entity and contractors to "get the project done." Our staff includes retired contractors, auditors, attorneys and industry veterans.
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