SMALL PROJECT EXEMPTION Clause Samples
The Small Project Exemption clause defines circumstances under which certain projects, typically those below a specified monetary value or scope, are exempt from some or all standard contractual requirements. In practice, this clause might allow projects under a certain budget threshold to bypass detailed reporting, insurance, or compliance obligations that would otherwise apply to larger projects. Its core function is to reduce administrative burden and costs for minor projects, ensuring that contractual processes remain efficient and proportionate to the project's scale.
POPULAR SAMPLE Copied 1 times
SMALL PROJECT EXEMPTION. A CONTRACTOR who works exclusively on small public works projects is not required to register as a public works contractor or file electronic certified payroll reports for those pro- jects. CONTRACTORS are still required to maintain certified payroll records on a continuous basis, and provide them to the Labor Commissioner’s Office upon request. Additionally, awarding agencies are not required to submit the notice of contract award through DIR’s PWC-100 system on projects that fall within the small project exemption. The small project exemption applies for all public works projects that do not exceed:
(1) $$25,000 for new construction, alteration, installation, demolition or repair; or
(2) $$15,000 for maintenance.
SMALL PROJECT EXEMPTION. Effective 7/1/2017, small projects ($24,999 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 Section 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.