FOUNDATION FOR FAIR CONTRACTING

Senate Bill 96

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Penalties may be assessed against Awarding Bodies for the following (Labor Code Section 1773.3(c)):

• Failing to timely submit PWC-100 information

• Entering into a contract with an unregistered contractor or

• Allowing an unregistered contractor to perform work on a project it awarded

 

Civil Penalty:  Subject to penalties of $100 per day in violation of

either requirement, up to $10,000 per project.

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Penalties may also be assessed against an Awarding Body (Labor Code Section 1773.3(d)):

• Final payment was made and it is later discovered that an unregistered contractor worked on the project

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Civil Penalty:  Subject to penalties of $100 for each calendar day of

noncompliance, for a period of up to 100 days for each unregistered

contractor or subcontractor.

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Awarding Body “Debarment” (Labor Code Section 1773.3(f)):

• “Whenever the Labor Commissioner determines that an awarding agency has willfully violated the requirements of this section or chapter with respect to two or more public works contracts or projects in any 12-month period, the awarding agency shall be ineligible to receive state funding or financial assistance for any construction project undertaken by or on behalf of the awarding agency for one year…”

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Stop Order (Labor Code Section 1771(j)):

• Where a contractor or subcontractor engages in the performance of any public work contract without having been registered is in violation of the requirements of section 1725.5 or this section, the Labor Commissioner shall issue and serve a Stop Order prohibiting the use of the unregistered contactor or the unregistered subcontractor on all public works until the unregistered contractor or unregistered subcontractor is registered.  The stop order shall not apply to work by registered contractors or subcontractors on the public work.”

A Stop Order is served ONLY upon the unregistered contractor or subcontractor.

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Failure to observe Stop Order (Labor Code Section 1771.1(k)):

• Failure of a contractor or subcontractor, owner, director, officer, or managing agent of the contractor or subcontractor to observe a Stop Order issued and served upon him or her pursuant to subdivision (j) is guilty of a misdemeanor punishable by imprisonment in county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both.”