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Licensing

DIR Registration for California Contractors

If you want public works in California, DIR registration comes before the bid. Here is what it is, who needs it, and how it sits next to the bonds you still have to carry.

Illustration for the guide: DIR Registration for California Contractors

What DIR registration is

DIR registration is registering with California's Department of Industrial Relations (DIR). Under Labor Code §1725.5, it is required for any contractor or subcontractor that bids or works on public works projects in the state.

It is an annual registration with an annual fee, so it is something you keep current, not a one-time step. Requirements can change, so confirm the current rules with the DIR before you rely on them.

Who needs it

The requirement is broad. It is not just the prime contractor.

  • Contractors and subcontractors. Anyone that bids or works on a public works project needs to be registered.
  • Before you bid. If public work is in your plans, register first. Read the how to bid public works in California guide for where bidding fits.

DIR registration vs. bonding

Registration and bonding are two different things, and you need both. DIR registration is separate from, but parallel to, your bonding. Being registered does not bond your project, and being bonded does not register you.

You still need the contract bonds the job requires: the bid bond to bid, then the performance bond and payment bond if you win. Handle the registration with the DIR, and let us handle the bonding.

Questions

FAQs

Reviewed by Michael Melshenker, CEO. Updated June 2026.

What is DIR registration?
Registering with California's Department of Industrial Relations (DIR). Under Labor Code §1725.5, it is required for any contractor or subcontractor that bids or works on public works projects. It is an annual registration with an annual fee.
Who needs to register with the DIR?
Any contractor or subcontractor that bids or works on public works in California. If public work is in your plans, you register before you bid. Confirm current requirements with the DIR.
Does DIR registration replace my bonds?
No. Registration is separate from, but parallel to, your bonding. You still need the bid, performance, and payment bonds the project requires.