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A new law in New York will directly affect the bidding process for contractors and subcontractors.
As of December 30, 2024, contractors and subcontractors of public and private projects in accordance with Article 8 must register in the New York State Department of Labor before they can bid or carry out work. After a contractor is approved, a registration certificate will be issued electronically and is valid for two calendar years.
The initiative is intended to ensure compliance with labor standards and fair practices throughout New York’s construction industry, said Kathleen Bloss, a partner at The Bonadio Group, an accounting and consulting firm based in Rochester, N.Y. York.
Here, Bloss talks to Construction Dive about the types of projects the law covers, the steps contractors must take to comply, and the ways it aims to improve construction safety.
This interview has been edited for brevity and clarity.
Immersion in CONSTRUCTION: Who does this new registration requirement apply to and are there specific roles or project types that are more affected than others?
KATHLEEN BLOSS: The new registration requirements apply to contractors and subcontractors carrying out work on public or private projects that may have a public funding or subsidy component, for example renewable energy systems, broadband roll-outs, climate-related projects or road excavations. A private contract is covered by the requirements if public funds pay more than 30% of the total costs and the project costs more than $5 million.
What are the most critical steps that contractors and subcontractors must take to ensure they are in compliance with NYSDOL registration requirements?
Contractors must visit NYSDOL Public Works Registry website to start your registration.
Kathleen Bloss
Permission granted by The Bonadio Group
Contractors and subcontractors must provide detailed identifying information about their business, their employees, workers’ compensation and disability insurance, prior labor law violations, and apprenticeships. Any contractor or subcontractor who bids or begins work on a covered project after December 30, 2024, without being registered with NYSDOL, will be subject to fines and stop-work orders.
What are the possible consequences for contractors who do not register or do not comply after registration?
Contractors who fail to comply with the new requirements face penalties of up to $1,000 per violation. They also risk disrupting the project, as unregistered contractors or subcontractors may face work stoppages if they fail to comply. Unregistered contractors cannot bid on public works projects.
How will this initiative affect labor standards and fair practices in the New York construction industry?
Benefits for contractors in the New York construction industry relate to improved credibility and a streamlined process. Being on the NYSDOL registry can improve trust with clients and partners. In addition, pre-registration reduces administrative barriers when tendering for new projects.
For consumers, registration ensures that contractors comply with labor laws and safety standards, reducing risks for both consumers and workers. Ensuring that contractors meet prevailing wage and other labor standards will ensure that contractors pay their workers wages and benefits at fair rates that are no less than what others pay their workers locally for similar projects.
What other developments around this requirement are you monitoring?
Contractors are encouraged to obtain affirmative representations from project owners as to whether they are receiving public funds or whether the project is considered a covered project prior to bidding. If a project owner is unsure whether their project is a covered project, they can check with the Public Grants Board to determine the status of the project and whether it is covered by prevailing wage requirements.
It is the project owner’s responsibility to verify the registration status of all contractors and subcontractors before starting their work. A contractor has the same responsibility to verify the registration status of any hired subcontractor before starting their work.
