from the Peninsula Builders Exchange e-News July 13, 2018
Where are the registrants? Business is booming and everyone is bid to the max. Many public works contractors are actually not bidding or bidding very selectively because they are out of, or near max, on bonding capacity. CA decided to charge a fee to become a public works contractor. Last year that fee was $300, and now it is $400. With all this work it seems like new people should be entering the field and very few should be leaving it. But, that’s not what the numbers say:
Last year registration was 31,963 contractors at $300 / each = $ 9,588,900 This year registration was 17,776 contractors at $400 / each = $ 7,110,400
Shortfalls: 14,187 $ 2,478,500
According to the DIR numbers of registrants, 14,187 fewer contractors registered and because of this they made $ 2,478,500 less this year than last. Perhaps a few contractors forgot to re- up? But 14,187 forgetful registrants is a big number, so it’s safe to assume that many people initially registered and then changed their minds on doing PW projects when time to renew cam up. Since the money is used to fund enforcement we can probably look for a further fee increase next year to make up for the 2.5 million shortfall.