Quick answer: To bid on almost any California public works project, you must register with the Department of Industrial Relations (DIR) for $400 per year, pay the state-set prevailing wage on any job worth more than $1,000, and file certified payroll electronically. Contractors who work only on projects at or under $25,000 (or $15,000 for maintenance) qualify for a small project exemption and can skip registration and electronic reporting, though they must still keep certified payroll records.
If you plan to chase construction, repair, or maintenance work funded by a California city, county, school district, or state agency, DIR registration and prevailing wage compliance are the price of entry. Miss them and your bid can be thrown out or your award pulled. This guide covers who must register, what it costs, the thresholds that trigger each rule, the apprenticeship forms, and the 2026 AB 889 changes that reshaped how fringe benefits are calculated.
Do I need DIR registration to bid on public works in California?
Yes. Under SB 854, no contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the DIR, and none may perform the work unless registered. This has been the rule since 2015, and awarding agencies must state it in every call for bids and in the contract documents.
Registration is not a license and does not replace your Contractors State License Board (CSLB) license. It is a separate annual enrollment that confirms you carry workers’ compensation, hold the proper licenses, and have not been debarred. Every subcontractor on the job needs its own active registration, not just the prime.
| DIR registration at a glance | Detail |
|---|---|
| Who must register | Any contractor or subcontractor listed on a public works bid or performing the work |
| Fee | $400 for one fiscal year, $800 for two years, $1,200 for three years |
| Registration period | July 1 to June 30; expires June 30 regardless of when you enroll |
| Where | The DIR online contractor registration system |
| Bid rule | You cannot be listed on a public works bid unless your registration is active |
What counts as a public works project in California?
A public works project is construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part with public funds. The Labor Code defines it broadly, so paving a county road, remodeling a city building, or installing HVAC in a school all qualify.
The dollar line matters. Prevailing wage must be paid to all workers on any public works project worth more than $1,000. Below that, the requirement does not attach. Above it, the full set of DIR obligations can apply depending on the project size.
How much does DIR registration cost and how do I register?
Registration costs $400 for one fiscal year, with two-year ($800) and three-year ($1,200) options that save you the yearly renewal step. The fee is non-refundable, and the fiscal year runs July 1 to June 30, so a registration bought in May still expires on June 30.
You enroll and renew through the DIR’s online application system, pay by credit card or e-check, and receive a registration number that goes on your bids. Awarding bodies verify that number before they accept your proposal, and they file a PWC-100 contract award notice with the DIR within five days of the award.
What is the small project exemption?
The small project exemption lets contractors who work only on low-value public works skip registration and electronic certified payroll reporting. It applies to projects that do not exceed $25,000 for new construction, alteration, installation, demolition, or repair, and $15,000 for maintenance.
The exemption is narrow. You still have to keep certified payroll records on a continuous basis and hand them to the Labor Commissioner’s Office on request, and if the total of projects awarded to you by one agency crosses the threshold, registration is required after all.
| Project value | What applies |
|---|---|
| More than $1,000 | Prevailing wage must be paid to all workers |
| $25,000 or less (construction) / $15,000 or less (maintenance) | Small project exemption: no DIR registration or eCPR required, but keep certified payroll records |
| $30,000 or more | Apprenticeship requirements apply (DAS 140, DAS 142, and the 1:5 ratio) |
What is California prevailing wage, and how do I pay it?
Prevailing wage is the hourly rate, including fringe benefits, that the Director of Industrial Relations sets for each craft in each county. On public works over $1,000, you must pay every worker at least that rate, and you prove it by filing certified payroll records electronically through the DIR’s eCPR system.
The rules tightened in 2026. Effective January 1, 2026, AB 889 changed how fringe benefits are counted on public works. It requires annualization of benefits, ends the common practice of frontloading them into public works hours, and requires employers to keep inspection-ready compliance records. Contractors who relied on frontloading to hit the prevailing rate need to recalculate how they credit health, pension, and training contributions before their next bid.
What are the apprenticeship requirements on California public works?
Public works contracts valued at $30,000 or more carry an obligation to employ apprentices, unless the craft or trade does not use them. Two forms drive the process, and both carry hard deadlines.
- DAS 140 (Notification of Contract Award): submit it to the applicable apprenticeship committees within 10 days of the contract or subcontract being executed, and always before you start work on site.
- DAS 142 (Request for Dispatch of an Apprentice): submit it at least three business days before you need apprentices on the job.
You must employ apprentices in the correct ratio, generally one hour of apprentice work for every five hours of journeyman work, and make training fund contributions to the apprenticeship committee or the California Apprenticeship Council. Missing a DAS 140 deadline exposes you to penalties starting at $100 per day and rising to $300 per day for repeat violations.
| Form or action | Who files it | Deadline |
|---|---|---|
| DIR registration | Contractor and each subcontractor | Before your name goes on a bid |
| PWC-100 contract award notice | Awarding body | Within 5 days of contract award |
| DAS 140 notification of award | Contractor | Within 10 days of award, before work starts |
| DAS 142 request for dispatch | Contractor | At least 3 business days before apprentices are needed |
| Certified payroll (eCPR) | Contractor | Filed electronically with the DIR on the required schedule |
Why public works volume is rising in Southern California
The compliance load is worth it because the pipeline is large and growing. The Los Angeles region is spending on a scale that pulls in contractors of every size ahead of the 2026 FIFA World Cup, the 2027 Super Bowl, and the 2028 Olympic and Paralympic Games. LA Metro’s rail expansion program is estimated at roughly $35 billion, Los Angeles World Airports is running a capital program near $30 billion (including a $2.9 billion Automated People Mover and a $1 billion rental car facility), and the 2028 Games carry a budget in the range of $6.9 billion.
Most of that money flows through public works contracts subject to prevailing wage and DIR registration. Small and mid-size firms win the site work, electrical, security, signage, landscaping, and maintenance packages that the large primes subcontract out. Getting registered and compliant now positions you for the bids that keep coming through 2028.
How FindBids helps you find public works bids you can win
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Legacy tools make you pick codes and keywords and still leave you downloading solicitations by hand. FindBids uses vector semantic matching to shortlist the bids that fit your business, then Gemini Pro analyzes and scores each solicitation on genuine fit. For a small contractor deciding where to spend limited bid-and-proposal time, that means less time hunting across a hundred city and county portals and more time on the public works opportunities you can actually win.
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Frequently asked questions
Do I need DIR registration for a services or supply contract?
No. DIR registration and prevailing wage apply to public works, meaning construction, alteration, demolition, installation, or repair paid with public funds. A contract to supply goods or deliver professional services that is not public works does not require registration. When a solicitation is a public works project worth more than $1,000, both prevailing wage and registration apply.
Does my subcontractor also need to register with the DIR?
Yes. Every contractor and subcontractor listed on a public works bid or performing the work needs its own active DIR registration. The prime’s registration does not cover the subs, and an unregistered sub can invalidate the bid.
How often do I have to renew DIR registration?
Registration runs by fiscal year and expires every June 30. You can renew one year at a time for $400 or lock in two or three years for $800 or $1,200 to avoid an annual lapse that could keep you off a bid.
What happens if I bid without being registered?
Your bid can be rejected as nonresponsive, and if an award slips through, it can be challenged. Awarding bodies are required to verify registration and to include the requirement in the call for bids, so an unregistered contractor rarely gets far in the process.
Frequently Asked Questions
Do I need DIR registration to bid on every California government contract?
No. DIR registration is required only for public works projects (construction, alteration, demolition, installation, or repair paid with public funds). Contracts for goods, professional services, or IT that are not public works do not require it. If a project is public works and worth more than $1,000, prevailing wage applies and you must be registered to appear on the bid.
How much does California DIR registration cost?
Registration is $400 for one fiscal year (July 1 to June 30). You can register for two years for $800 or three years for $1,200. The fee is non-refundable and covers a full fiscal year no matter when you register.
What is the California prevailing wage threshold?
Prevailing wage must be paid to all workers on any public works project worth more than $1,000. The Director of Industrial Relations sets the rates by craft and by county, and they are published in the general prevailing wage determinations.
What changed with AB 889 in 2026?
Effective January 1, 2026, AB 889 changed how fringe benefits are calculated on public works. It requires annualization of benefits, ends the practice of frontloading them, and requires employers to keep inspection-ready compliance records.
How does FindBids help with public works bids?
FindBids reads what your company actually does and matches it to live California public works and service contracts by meaning, then pulls the full bid documents for you automatically, including from gated portals that normally require a manual login. It surfaces the public works opportunities that fit you so you can confirm the DIR and prevailing wage requirements before you commit time to a bid.