CSLB Law & Business ExamPublic WorksEasy
A contractor plans to submit a bid on a city street resurfacing project. Before bidding, what must the contractor first do regarding the Department of Industrial Relations (DIR)?
- AObtain a separate public works license from DIR in addition to the CSLB license
- BPost a public works bid bond with DIR's Compliance Monitoring Unit
- CFile certified payroll records with DIR before the bid is submitted
- DRegister with DIR as a public works contractor and pay the required annual fee
Show answer & explanationAnswer & explanation
Correct answer: D. Register with DIR as a public works contractor and pay the required annual fee
California law (Labor Code §1725.5) requires contractors to register annually with DIR and pay a registration fee before bidding or working on public works projects. There is no separate 'license' issued by DIR, and certified payroll and bonding requirements come later, after award and during performance.
Why the other options are wrong
- A. DIR does not issue a contractor's license; CSLB is the licensing authority.
- B. Bid bonds are required by the awarding body, not filed with DIR.
- C. Certified payroll is submitted during performance of the awarded contract, not before bidding.
DIR Public Works Registration
Contractors and subcontractors must register annually with the Department of Industrial Relations before bidding or performing on public works projects.
- Required under Labor Code §1725.5
- Must renew annually with a fee (~$400)
- Applies to both prime contractors and subcontractors
Memory trick: No DIR badge, no bid.