Construction Industry Force Account Council

Promoting Transparency Through Public Agency Compliance

Public or Private? Labor Code VS Public Contract Code on Public Projects

Public or Private? Labor Code VS PCC Banner

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By Michelle Pickens, Executive Director. -

There appears to be much confusion surrounding public project definitions. CIFAC Compliance Managers often hear “the Labor Commissioner made a decision that this is a public project so why didn’t it bid”. The Labor Code (LC) finds that most projects with more than a dollar of public money is classified as a public project with minimal exceptions.

The Labor Code, which outlines the requirements for the payment of prevailing wages defines a public project as the “construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds” and includes the design and pre-construction phases of work.

Just because a construction project is funded through public funds does not mean that the Public Contract Code (PCC) applies.

The PCC definition varies depending on the type of agency. There are over 100 different types of agencies listed, including state agencies like Caltrans and local agencies such as cities, counties and school districts. There are some basic factors that indicate a project may be subject to the PCC such as if the public agency is handling the procurement of contractors on a project, whether the funds are public or private, the classification of work involved and the cost value of the work.

Private non-profit organizations, associations or joint powers authorities are not required to follow the Public Contract Code although their funding is commonly public money.

If you have any questions about the applicability of the PCC or are concerned about a project in your area, please contact CIFAC.

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