Rumor Has It

Rumor has it that you are thinking about bidding on prevailing wage, Davis-Bacon, or Public Works Construction. You heard that working on government construction projects can be very lucrative.Well, you heard right, but before you go bidding on that first job, you must understand the rules of engagement. There are 15 tips you need to know before you place your first bid. These 15 tips derive from years of hands-on experience correcting contractors’ mistakes, preventing them from being paid. Learn the rules because not knowing them will land you in the poor house. In other words, you can be out of business very quickly.

TIP #1 REGISTER BEFORE YOU BID

All contractors must register with the Department of Industrial Relations at www.dir.ca.gov before bidding on Request for Proposal (RFP). Registration costs $400 per year. The registration year is July 1st to June 30th, and there is no proration on the yearly fee. If your RFP is due on June 1st, you will need to register before that date; another $400 will be due by July 1st. You now have the option to register for three years at a time. Your registration must always be current. Memorize or keep your registration number close. It will be requested constantly.The consequences for either bidding or performing on a public works project while not registered is $2000. Some contractors take shortcuts running their business; of course, that is not anyone on this website. You need proof of workers’ compensation coverage, a State License, no delinquent unpaid wages, and not be under Federal or State Debarment to complete the registration. Pay by credit card to receive your registration fastest within 24 hours.