Navigating Contractor Registration and Compliance: What Are the Legal Must-Knows?

Contractor Registration and Legal Compliance Questions

The employer is having a Registration Certificate (RC) with its existing contractors with proper registration, but the employer has started new construction work where he appointed a new construction contractor. So, my questions are:

• Should the employer have to register his name in his RC?
• Is a contract labor license required for a new construction contractor?
• If the work is for a minimum period, let's say for one to six months, does the employer still have to carry out all legal procedures?
• Does the construction contractor have to maintain all legal registers?

Please advise.

Regards.

The answers to your questions are as follows:

1. Yes.
2. If the contractor is engaging 20 or more workers (some states have a threshold of 10 or more), please check the coverage aspect for your respective state.
3. Irrespective of the period of work, all statutory compliances need to be met.
4. Yes.

Regards,
Preetam Deshpande

Dear Rahul ji, Shri. Preetam Deshpande is absolutely correct. I wish to add three things further for your information and knowledge.

Firstly, if the new construction work is in the same premises, there will be an amendment to the current RC with the enrollment of a new contractor. However, if the new construction work is in different premises, then you have to apply for a fresh RC.

Secondly, the BOCW Act is also applicable to the construction work, under which each establishment is required to obtain an RC, and each construction worker engaged for more than 90 days is required to register as a beneficiary.

Thirdly, the Cess under the BOCW Act is payable at 1% of the project cost.

Thanks and regards,

Keshav Korgaonkar

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