Significant changes to the law were passed by Delaware’s 150th General Assembly that all construction firms doing business in the First State should be aware of. Generally, these changes amend the Workplace Fraud Act (19 Del.C. Sections 3501-3515), create the Delaware Contractor Registration Act (19 Del.C. Sections 3601-3611), and establish an apprenticeship training requirement under the Large Public Works Contract Procedures statute (29 Del.C. Section 6962).

Senate Substitute 1 to Senate Bill 95 modified the Workplace Fraud Act and implemented new requirements for firms conducting construction business in the First State. This statute is specifically limited to the “construction services industry” and makes no distinction between public and private construction projects, or between commercial, industrial, or residential construction.  The Workplace Fraud Act prohibits employers that engage in construction in the state of Delaware from misclassifying employees as so-called “1099 independent contractors.”  The act provides a fairly detailed explanation of what is and is not considered construction services and should be consulted to determine whether a business falls within the act’s authority. This article, however, is concerned with the two important changes adopted by the noted legislation: businesses subcontracting with other businesses are now permitted to subcontract with other businesses that offer the same or similar services or that conduct the same core business; and all individuals or businesses engaging in construction must (as of Oct. 1, 2020) be registered with the new Delaware Contractor Registry Office in order to lawfully engage in construction work within the state.