The California State Legislature recently enacted legislation to modify the contract procurement methods of certain state and local agencies. SB 785 modified the design-build process for the Department of General Services (DGS) and the Department of Corrections and Rehabilitation (CDCR) while AB 566 altered how school districts can enter into lease-leaseback agreements.

A key provision in both pieces of legislation dictates that a minimum percentage of journeypersons must be graduates of an apprenticeship program. If not, the design-build or lease-leaseback entity cannot be prequalified or shortlisted by the awarding agency. In 2016, 20% of all journeypersons for a design-build project must be a graduate of an apprenticeship program, while lease-leasebacks require 30%. The ratios increase by 10% per year thereafter, capping at 60% in 2019 for lease-leasebacks and 2020 for design-build projects.

As always, the devil is in the details. You can find more information on the legislation for lease-leaseback school construction in AB 566 and design-build for DGS and CDCR projects in SB 785.

To help contractors comply with these new legislative requirements the Laborers’ Apprenticeship Programs continue to turn-out journeymen. In 2015, more than 270 apprentices journeyed out in Northern California, and Southern California graduated 449 apprentices. During the previous ten years, nearly 4,700 apprenticeship alumni advanced from one of these union programs.

With more than 4,000 apprentices in the pipeline, the Laborers Union will continue to help its management partners meet or exceed the demands of the industry including these new regulations. Contact the Laborers’ Training Center in your area to get more information about its Apprenticeship Program and its respective training courses.