Common use of DIR Registration Clause in Contracts

DIR Registration. a) For Small Projects (as defined in this subsection): “Small Projects” ($25,000 or less), when the project is for construction, alteration, demolition, installation, or repair work, are exempt from DIR Registration and submission of electronic Certified Payroll Records directly to the DIR. The unregistered contractor or subcontractor is not required to furnish the CPR records specified in Labor Code § 1776 directly to the Labor Commissioner, but shall retain the records specified in Section 1776 for at least three (3) years after completion of the work. b) For all other projects: Strict compliance with DIR Registration requirements pursuant to Labor Code § 1725.5 is a material obligation of the Contractor under the Contract. The foregoing includes without limitation, compliance with DIR Registration requirements at all times during performance of the work by the Contractor and all subcontractors of any tier. The failure of the Contractor and all subcontractors of every tier to be DIR Registered at all times during performance of the work is the Contractor’s default of a material obligation of the Contractor under the Contract. In accordance with Labor Code § 1771.1(j)(1), where a contractor or subcontractor engages in the performance of any public work contract without having been registered in violation of the requirements of § 1725.5, the Labor Commissioner shall issue and serve a stop order prohibiting the use of the unregistered contractor or the unregistered subcontractor on all public works until the unregistered contractor or unregistered subcontractor is registered. Failure of a Contractor or subcontractor, owner, director, officer, or managing agent of the Contractor or subcontractor to observe a stop order issued and served upon him or her pursuant to subdivision (j) is guilty of a misdemeanor punishable by imprisonment in county jail not exceeding 60 days or by a fine not exceeding $10,000, or both. No time extensions or adjustments in Contract price will be made as a result of delays caused by a Stop Order issued in accordance with this section.