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GOVERNMENT RELATIONS New ‘Skilled Workforce’ Requirements


Design-Build, Best Value, and Lease-Leaseback Bidding Face New Rules Starting in January 2016


By Dave Ackerman


and it has now moved to some alter- native project delivery methods for various public entities – percentage requirements for journeymen to have graduated from approved appren- ticeship programs. Te requirements are important to


I


the overall safety on construction sites; however, many questions remain about the implementation and enforcement. Described below is the legislative history and the journeymen require- ments concerning a skilled workforce.


SB 54 (passed in 2013) Working at chemical manufac-


turing and processing facilities is hazardous work, and language was inserted in the bill by labor interests to require at least 30 percent of the skilled journeypersons to be graduates of a state or federal-approved appren- ticeship program effective January 1, 2014. Te percentage requirement increases to 45 percent in 2015, and 60 percent in 2016.


SB 785 (passed in 2014) A simple consolidation of numerous


design-build statutes also turned into a series of skilled workforce require- ments in design-build projects for the state’s General Services, and Correc- tions and Rehabilitation Departments (over $1 million), cities, counties, transit districts, and special districts that operate wastewater, solid waste, water recycling, or fire protection facilities/services. It also applies to Port of San Diego design-build projects over $1 million. Te skilled journeyperson require- ments were inserted into the bill late


6 January/February 2016


t began with legislation in 2013 for construction of refineries and petro- chemical manufacturing facilities,


in the process, and they increase over a five-year period. Effective January 1, 2016, at least 20 percent of the skilled journeypersons must be graduates of a state or federal-approved appren- ticeship program. Te rate increases to 30 percent in 2017, 40 percent in 2018, 50 percent in 2019, and 60 percent in 2020.


SB 762 (passed in 2015) Tis bill allows for a pilot


program of best-value contracting for projects over $1 million in seven counties, including Alameda, Los Angeles, Riverside, San Bernardino, San Diego, Solano, and Yuba, until January 1, 2020. Effective January 1, 2016, at least 20 percent of the skilled journeypersons must be graduates of a state or federal-approved appren- ticeship program. Te rate increases to 30 percent in 2017, 40 percent in 2018, 50 percent in 2019, and 60 percent in 2020.


AB 566 (passed in 2015) Tis bill added the skilled


workforce requirements to the lease- leaseback delivery method for school districts on projects over $1 million. However, the percentage requirements differ, with a 30 percent graduation requirement on January 1, 2016. Te rate increases to 40 percent in 2017, 50 percent in 2018, and 60 percent in 2019.


AB 1358 (passed in 2015) Effective July 1, 2016, design-


build authority for school districts will be lowered from $2.5 million to $1 million. Also included is a 20 percent skilled workforce requirement. Te rate increases to 30 percent on July 1, 2017, 40 percent on July 1, 2018, 50 percent on July 1, 2019, and 60 percent on July 1, 2020.


AB 1185 (passed in 2015) Authorizes the Los Angeles


Unified School District (LAUSD) to utilize a best value procurement process as a pilot project until January 1, 2021, for construction projects over $1 million. Included is a 20 percent skilled workforce requirement. Te rate increases to 30 percent on July 1, 2017, 40 percent on July 1, 2018, 50 percent on July 1, 2019, and 60 percent on July 1, 2020.


SB 374 and AB 1290 (passed in 2015)


Two additional bills passed in


2015 also require the use of skilled workforce by cross referencing Public Contract Code Section 22160, which contains the skilled workforce require- ments listed above. Tose bills are SB 374 that authorizes the San Diego Association of Governments to utilize design-build for transit capital projects and development projects adjacent or related to transit facilities and AB 1290 that authorizes the Mayers Memorial Hospital District (MMHD) located in Shasta County in Northern California to use design- build contracting. For both bills, effective January 1, 2016, at least 20 percent of the skilled journeypersons must be graduates of a state or federal- approved apprenticeship program. Te rate increases to 30 percent in 2017, 40 percent in 2018, 50 percent in 2019, and 60 percent in 2020.


It is important to note three provi- sions that are common in all of these


statutes: 1. Te skilled workforce provisions in each of these bills specifies that the bidding entity or contractor shall not be prequalified or short- listed unless the entity provides


Continued on page 8 California Constructor


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