Staying compliant with all the regulations in place is a continuous struggle for contractors and subcontractors that do public works projects. Every step of the project must be carefully monitored, from tracking hours and assigning the pay rates to submitting complicated reports and certifying that all rules have been followed. Mistakes at any point in the process carries the risk of penalties that include legal actions, fines and even debarment from public projects.
Staying compliant with AB-3018 will require construction companies to utilize more journeypersons on qualifying public works projects. This comes with additional cost and may even cause staffing and recruitment problems. This means you will need to be proactive in order to stay ahead of the law.
Here are a few things you can do to stay compliant:
- Actively recruit employees from qualifying apprenticeship programs when possible.
- Build partnerships with apprenticeship programs in your area.
- Consider if sending current workers into approved apprenticeship programs makes sense in your situation.
- If you’re a general contractor, make sure your contracts with subs includes the skilled and trained workforce requirement.
- Identify all existing employees that meet the skilled journeyperson definition to more easily track your compliance.
- Create a system for regularly checking your workforce to make sure each project is compliant.
Keeping up with reporting
As with most regulations, AB-3018 comes with reporting requirements. Contractors are required to submit monthly reports for the duration of the contract to prove they are complying with the law. If a report is incomplete, or doesn’t show compliance, the awarding body can actually withhold payments until the issue is corrected.
While it can be difficult to manually track the percentage of skilled journeypersons on the job, it’s best to not wait until the end of the month to see if you’re on track. To solve this issue, we’ve created a proactive reporting solution. With just a couple of clicks, our software will create a report that allows you to see if your project satisfies the ratio requirements of AB-3018. This also makes it easier to complete required monthly reports. If you want, you can also receive nightly emails, allowing you to adjust as needed.
Staying ahead of all of the rules, regulations and reporting requirements is a constant struggle for contractors and subcontractors. But, since there is so much at stake, it’s important to make compliance a priority. By creating compliance strategies that fit your business, monitoring compliance issues throughout the month and automating processes when possible, you can reduce your risk.
Read more about AB-3018 on-demand reports
The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.