PART 6. WORKS OF IMPROVEMENT [8000. - 9566.]

Part 6 added by Stats. 2010, Ch. 697, Sec. 20.

§§ 8000–9566 · 234 sections

TITLE 1. WORKS OF IMPROVEMENT GENERALLY §§ 8000–8154 · 57 sections
1. CHAPTER 1. General Provisions §§ 8000–8066 · 34 sections
  1. ARTICLE 1. Definitions §§ 8000–8050 · 26 sections
    § 8000 Unless the provision or context otherwise requires, the definitions in this article govern the construction of this part.
    § 8002 “Admitted surety insurer” has the meaning provided in Section 995.120 of the Code of Civil Procedure.
    § 8004 “Claimant” means a person that has a right under this part to record a claim of lien, give a stop payment notice, or assert a claim against a payment bond, or…
    § 8006 “Construction lender” means either of the following: (a) A mortgagee or beneficiary under a deed of trust lending funds with which the cost of all or part of a…
    § 8008 “Contract” means an agreement that provides for all or part of a work of improvement.
    § 8010 “Contract price” means the price agreed to in a direct contract for a work of improvement.
    § 8012 “Contractor” includes a direct contractor, subcontractor, or both. This section does not apply to Sections 8018 and 8046.
    § 8014 “Design professional” means a person licensed as an architect pursuant to Chapter 3 (commencing with Section 5500) of Division 3 of the Business and…
    § 8016 “Direct contract” means a contract between an owner and a direct contractor that provides for all or part of a work of improvement.
    § 8018 “Direct contractor” means a contractor that has a direct contractual relationship with an owner. A reference in another statute to a “prime contractor” in…
    § 8020 For the purposes of Title 3 (commencing with Section 9000), “funds” means warrant, check, money, or bonds (if bonds are to be issued in payment of the public…
    § 8022 “Labor, service, equipment, or material” includes, but is not limited to, labor, skills, services, material, supplies, equipment, appliances, power, and…
    § 8024 (a) “Laborer” means a person who, acting as an employee, performs labor upon, or bestows skill or other necessary services on, a work of improvement. (b)…
    § 8026 “Lien” means a lien under Title 2 (commencing with Section 8160) and includes a lien of a design professional under Section 8302, a lien for a work of…
    § 8028 “Material supplier” means a person that provides material or supplies to be used or consumed in a work of improvement.
    § 8030 (a) For the purposes of Title 2 (commencing with Section 8160), “payment bond” means a bond given under Section 8600. (b) For the purposes of Title 3…
    § 8032 “Person” means an individual, corporation, public entity, business trust, estate, trust, partnership, limited liability company, association, or other entity.
    § 8034 (a) For the purposes of Title 2 (commencing with Section 8160), “preliminary notice” means the notice provided for in Chapter 2 (commencing with Section 8200)…
    § 8036 “Public entity” means the state, Regents of the University of California, a county, city, district, public authority, public agency, and any other political…
    § 8038 “Public works contract” has the meaning provided in Section 1101 of the Public Contract Code.
    § 8040 “Site” means the real property on which a work of improvement is situated or planned.
    § 8042 “Site improvement” means any of the following work on real property: (a) Demolition or removal of improvements, trees, or other vegetation. (b) Drilling test…
    § 8044 (a) (1) For the purposes of Title 2 (commencing with Section 8160), “stop payment notice” means the notice given by a claimant under Chapter 5 (commencing with…
    § 8046 “Subcontractor” means a contractor that does not have a direct contractual relationship with an owner. The term includes a contractor that has a contractual…
    § 8048 “Work” means labor, service, equipment, or material provided to a work of improvement.
    § 8050 (a) “Work of improvement” includes, but is not limited to: (1) Construction, alteration, repair, demolition, or removal, in whole or in part, of, or addition…
  2. ARTICLE 2. Miscellaneous Provisions §§ 8052–8066 · 8 sections
    § 8052 (a) This part is operative on July 1, 2012. (b) Notwithstanding subdivision (a), the effectiveness of a notice given or other action taken on a work of…
    § 8054 (a) This part does not apply to a transaction governed by the Oil and Gas Lien Act (Chapter 2.5 (commencing with Section 1203.50) of Title 4 of Part 3 of the…
    § 8056 Except as otherwise provided in this part, Part 2 (commencing with Section 307) of the Code of Civil Procedure provides the rules of practice in proceedings…
    § 8058 For purposes of this part, “day” means a calendar day.
    § 8060 (a) If this part provides for filing a contract, plan, or other paper with the county recorder, the provision is satisfied by filing the paper in the office of…
    § 8062 No act of an owner in good faith and in compliance with a provision of this part shall be construed to prevent a direct contractor’s performance of the…
    § 8064 An owner may give a notice or execute or file a document under this part on behalf of a co-owner if the owner acts on the co-owner’s behalf and includes in the…
    § 8066 An act that may be done by or to a person under this part may be done by or to the person’s agent to the extent the act is within the scope of the agent’s…
2. CHAPTER 2. Notice §§ 8100–8119 · 10 sections
  - § 8100 Notice under this part shall be in writing. Writing includes printing and typewriting.
  - § 8102 (a) Notice under this part shall, in addition to any other information required by statute for that type of notice, include all of the following information to…
  - § 8104 (a) A direct contractor or subcontractor on a work of improvement governed by this part that employs a laborer and fails to pay the full compensation due the…
  - § 8106 Except as otherwise provided by statute, notice under this part shall be given by any of the following means: (a) Personal delivery. (b) Mail in the manner…
  - § 8108 Except as otherwise provided by this part, notice under this part shall be given to the person to be notified at the person’s residence, the person’s place of…
  - § 8110 Except as otherwise provided by this part, notice by mail under this part shall be given by registered or certified mail, express mail, or overnight delivery…
  - § 8114 A notice required by this part to be posted shall be displayed in a conspicuous location at the site.
  - § 8116 Notice under this part is complete and deemed to have been given at the following times: (a) If given by personal delivery, when delivered. (b) If given by…
  - § 8118 (a) Proof that notice was given to a person in the manner required by this part shall be made by a proof of notice declaration that states all of the…
  - § 8119 (a) With respect to a work of improvement on a common area within a common interest development: (1) The association is deemed to be an agent of the owners of…
3. CHAPTER 3. Waiver and Release §§ 8120–8138 · 10 sections
  - § 8120 The provisions of this chapter apply to a work of improvement governed by this part.
  - § 8122 An owner, direct contractor, or subcontractor may not, by contract or otherwise, waive, affect, or impair any other claimant’s rights under this part, whether…
  - § 8124 A claimant’s waiver and release does not release the owner, construction lender, or surety on a payment bond from a lien or claim unless both of the following…
  - § 8126 An oral or written statement purporting to waive, release, impair or otherwise adversely affect a lien or claim is void and unenforceable and does not create…
  - § 8128 (a) A claimant may reduce the amount of, or release in its entirety, a stop payment notice. The reduction or release shall be in writing and may be given in a…
  - § 8130 This article does not affect the enforceability of either an accord and satisfaction concerning a good faith dispute or an agreement made in settlement of an…
  - § 8132 If a claimant is required to execute a waiver and release in exchange for, or in order to induce payment of, a progress payment and the claimant is not, in…
  - § 8134 If the claimant is required to execute a waiver and release in exchange for, or in order to induce payment of, a progress payment and the claimant asserts in…
  - § 8136 If the claimant is required to execute a waiver and release in exchange for, or in order to induce payment of, a final payment and the claimant is not, in…
  - § 8138 If the claimant is required to execute a waiver and release in exchange for, or in order to induce payment of, a final payment and the claimant asserts in the…
4. CHAPTER 4. Bonds §§ 8150–8154 · 3 sections
  - § 8150 The Bond and Undertaking Law (Chapter 2 (commencing with Section 995.010) of Title 14 of Part 2 of the Code of Civil Procedure) applies to a bond given under…
  - § 8152 None of the following releases a surety from liability on a bond given under this part: (a) A change, alteration, or modification to a contract, plan,…
  - § 8154 (a) A bond given under this part shall be construed most strongly against the surety and in favor of all persons for whose benefit the bond is given. (b) A…
TITLE 2. PRIVATE WORKS OF IMPROVEMENT §§ 8160–8851 · 132 sections
1. CHAPTER 1. General Provisions §§ 8160–8190 · 10 sections
  1. ARTICLE 1. Application of Title § 8160 · 1 section
    § 8160 This title applies to a work of improvement that is not governed by Title 3 (commencing with Section 9000) of this part.
  2. ARTICLE 2. Construction Documents §§ 8170–8174 · 3 sections
    § 8170 (a) A written direct contract shall provide a space for the owner to enter the following information: (1) The owner’s name, address, and place of business, if…
    § 8172 (a) A public entity that issues building permits shall, in its application form for a building permit, provide space and a designation for the applicant to…
    § 8174 (a) A mortgage, deed of trust, or other instrument securing a loan, any of the proceeds of which may be used for a work of improvement, shall bear the…
  3. ARTICLE 3. Completion §§ 8180–8190 · 6 sections
    § 8180 (a) For the purpose of this title, completion of a work of improvement occurs upon the occurrence of any of the following events: (1) Actual completion of the…
    § 8182 (a) An owner may record a notice of completion on or within 15 days after the date of completion of a work of improvement. (b) The notice of completion shall…
    § 8184 A notice of completion in otherwise proper form, verified and containing the information required by this title, shall be accepted by the recorder for…
    § 8186 If a work of improvement is made pursuant to two or more direct contracts, each covering a portion of the work of improvement: (a) The owner may record a…
    § 8188 (a) An owner may record a notice of cessation if there has been a continuous cessation of labor on a work of improvement for at least 30 days prior to the…
    § 8190 (a) An owner that records a notice of completion or cessation shall, within 10 days of the date the notice of completion or cessation is filed for record, give…
2. CHAPTER 2. Preliminary Notice §§ 8200–8216 · 9 sections
  - § 8200 (a) Except as otherwise provided by statute, before recording a lien claim, giving a stop payment notice, or asserting a claim against a payment bond, a…
  - § 8202 (a) The preliminary notice shall comply with the requirements of Section 8102, and shall also include: (1) A general description of the work to be provided.…
  - § 8204 (a) A preliminary notice shall be given not later than 20 days after the claimant has first furnished work on the work of improvement. If work has been…
  - § 8206 (a) Except as provided in subdivision (b), a claimant need give only one preliminary notice to each person to which notice must be given under this chapter…
  - § 8208 A direct contractor shall make available to any person seeking to give preliminary notice the following information: (a) The name and address of the owner. (b)…
  - § 8210 If one or more construction loans are obtained after commencement of a work of improvement, the owner shall give notice of the name and address of the…
  - § 8212 An agreement made or entered into by an owner whereby the owner agrees to waive the rights conferred on the owner by this chapter is void and unenforceable.
  - § 8214 (a) Each person who has served a preliminary notice may file the preliminary notice with the county recorder. A preliminary notice filed pursuant to this…
  - § 8216 If the contract of any subcontractor on a particular work of improvement provides for payment to the subcontractor of more than four hundred dollars ($400),…
3. CHAPTER 3. Design Professionals Lien §§ 8300–8319 · 11 sections
  - § 8300 For purposes of this chapter, a “design professional” is a person described in Section 8014 who provides services pursuant to a written contract with a…
  - § 8302 (a) A design professional has, from the date of recordation of a claim of lien under this chapter, a lien on the site notwithstanding the absence of…
  - § 8304 A design professional is not entitled to a lien under this chapter unless all of the following conditions are satisfied: (a) The work of improvement for which…
  - § 8306 (a) On recordation of the claim of lien, a lien is created in favor of the named design professional. (b) The lien automatically expires and is null and void…
  - § 8308 (a) Except as provided in subdivision (b), no provision of this part applies to a lien created under this chapter. (b) The following provisions of this part…
  - § 8310 This chapter does not affect the ability of a design professional to obtain a lien for a work of improvement under Section 8400.
  - § 8312 A design professional shall record a claim of lien under this chapter no later than 90 days after the design professional knows or has reason to know that the…
  - § 8314 The creation of a lien under this chapter does not affect the ability of the design professional to pursue other remedies.
  - § 8316 (a) No lien created under this chapter affects or takes priority over the interest of record of a purchaser, lessee, or encumbrancer, if the interest of the…
  - § 8318 A design professional may not obtain a lien under this chapter for services provided for a work of improvement relating to a single-family, owner-occupied…
  - § 8319 (a) A design professional may convert a recorded design professional lien to a mechanics lien if all of the following requirements are met: (1) The design…
4. CHAPTER 4. Mechanics Lien §§ 8400–8494 · 36 sections
  1. ARTICLE 1. Who is Entitled to Lien §§ 8400–8404 · 3 sections
    § 8400 A person that provides work authorized for a work of improvement, including, but not limited to, the following persons, has a lien right under this chapter:…
    § 8402 A person that provides work authorized for a site improvement has a lien right under this chapter.
    § 8404 Work is authorized for a work of improvement or for a site improvement in any of the following circumstances: (a) It is provided at the request of or agreed to…
  2. ARTICLE 2. Conditions to Enforcing a Lien §§ 8410–8424 · 6 sections
    § 8410 A claimant may enforce a lien only if the claimant has given preliminary notice to the extent required by Chapter 2 (commencing with Section 8200) and made…
    § 8412 A direct contractor may not enforce a lien unless the contractor records a claim of lien after the contractor completes the direct contract, and before the…
    § 8414 A claimant other than a direct contractor may not enforce a lien unless the claimant records a claim of lien within the following times: (a) After the claimant…
    § 8416 (a) A claim of mechanics lien shall be a written statement, signed and verified by the claimant, containing all of the following: (1) A statement of the…
    § 8422 (a) Except as provided in subdivisions (b) and (c), erroneous information contained in a claim of lien relating to the claimant’s demand, credits and offsets…
    § 8424 (a) An owner of real property or an owner of any interest in real property subject to a recorded claim of lien, or a direct contractor or subcontractor…
  3. ARTICLE 3. Amount of Lien §§ 8430–8434 · 3 sections
    § 8430 (a) The lien is a direct lien for the lesser of the following amounts: (1) The reasonable value of the work provided by the claimant. (2) The price agreed to…
    § 8432 (a) A lien does not extend to work, whether or not the work is authorized by a direct contractor or subcontractor, if the work is not included in a direct…
    § 8434 A direct contractor or a subcontractor may enforce a lien only for the amount due pursuant to that contractor’s contract after deducting all lien claims of…
  4. ARTICLE 4. Property Subject to Lien §§ 8440–8448 · 5 sections
    § 8440 Subject to Section 8442, a lien attaches to the work of improvement and to the real property on which the work of improvement is situated, including as much…
    § 8442 The following interests in real property to which a lien attaches are subject to the lien: (a) The interest of a person that contracted for the work of…
    § 8444 (a) An owner of real property or a person claiming an interest in real property on which a work of improvement is situated that did not contract for the work…
    § 8446 A claimant may record one claim of lien on two or more works of improvement, subject to the following conditions: (a) The works of improvement have or are…
    § 8448 (a) As used in this section, “separate residential unit” means one residential structure, including a residential structure containing multiple condominium…
  5. ARTICLE 5. Priorities §§ 8450–8458 · 5 sections
    § 8450 (a) A lien under this chapter, other than a lien provided for in Section 8402, has priority over a lien, mortgage, deed of trust, or other encumbrance on the…
    § 8452 A mortgage or deed of trust, otherwise subordinate to a lien under Section 8450, has priority over a lien for work provided after recordation of a payment bond…
    § 8454 If a site improvement is provided for in a direct contract separate from the direct contract for the remainder of the work of improvement, the site improvement…
    § 8456 (a) This section applies to a construction loan secured by a mortgage or deed of trust that has priority over a lien under this chapter. (b) An optional…
    § 8458 (a) Except as provided in subdivision (b), a lien provided for in Section 8402 has priority over: (1) A mortgage, deed of trust, or other encumbrance that…
  6. ARTICLE 6. Enforcement of Lien §§ 8460–8470 · 7 sections
    § 8460 (a) The claimant shall commence an action to enforce a lien within 90 days after recordation of the claim of lien. If the claimant does not commence an action…
    § 8461 After commencement of an action to enforce a lien, the plaintiff shall record in the office of the county recorder of the county, or of the several counties in…
    § 8462 Notwithstanding Section 583.420 of the Code of Civil Procedure, if an action to enforce a lien is not brought to trial within two years after commencement of…
    § 8464 In addition to any other costs allowed by law, the court in an action to enforce a lien shall allow as costs to each claimant whose lien is established the…
    § 8466 If there is a deficiency of proceeds from the sale of property on a judgment for enforcement of a lien, a deficiency judgment may be entered against a party…
    § 8468 (a) This chapter does not affect any of the following rights of a claimant: (1) The right to maintain a personal action to recover a debt against the person…
    § 8470 In an action to enforce a lien for work provided to a contractor: (a) The contractor shall defend the action at the contractor’s own expense. During the…
  7. ARTICLE 7. Release Order §§ 8480–8488 · 5 sections
    § 8480 (a) The owner of property or the owner of any interest in property subject to a claim of lien may petition the court for an order to release the property from…
    § 8482 An owner of property may not petition the court for a release order under this article unless at least 10 days before filing the petition the owner gives the…
    § 8484 A petition for a release order shall be verified and shall allege all of the following: (a) The date of recordation of the claim of lien. A certified copy of…
    § 8486 (a) On the filing of a petition for a release order, the clerk shall set a hearing date. The date shall be not more than 30 days after the filing of the…
    § 8488 (a) At the hearing both (1) the petition and (2) the issue of compliance with the service and date for hearing requirements of this article are deemed…
  8. ARTICLE 8. Removal of Claim of Lien from Record §§ 8490–8494 · 2 sections
    § 8490 (a) A court order dismissing a cause of action to enforce a lien or releasing property from a claim of lien, or a judgment that no lien exists, shall include…
    § 8494 If a claim of lien expires and is unenforceable under Section 8460, or if a court order or judgment is recorded under Section 8490, the claim of lien does not…
5. CHAPTER 5. Stop Payment Notice §§ 8500–8560 · 22 sections
  1. ARTICLE 1. General Provisions §§ 8500–8510 · 6 sections
    § 8500 The rights of all persons furnishing work for any work of improvement, with respect to any fund for payment of construction costs, are governed exclusively by…
    § 8502 (a) A stop payment notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1, and shall be signed and verified by the…
    § 8504 A claimant that willfully gives a false stop payment notice or that willfully includes in the notice a demand to withhold for work that has not been provided…
    § 8506 (a) A stop payment notice to an owner shall be given to the owner or to the owner’s architect, if any. (b) A stop payment notice to a construction lender…
    § 8508 A stop payment notice is not valid unless both of the following conditions are satisfied: (a) The claimant gave preliminary notice to the extent required by…
    § 8510 (a) A person may obtain release of funds withheld pursuant to a stop payment notice by giving the person withholding the funds a release bond. (b) A release…
  2. ARTICLE 2. Stop Payment Notice to Owner §§ 8520–8522 · 2 sections
    § 8520 (a) A person that has a lien right under Chapter 4 (commencing with Section 8400), other than a direct contractor, may give the owner a stop payment notice.…
    § 8522 (a) Except as provided in subdivision (b), on receipt of a stop payment notice an owner shall withhold from the direct contractor or from any person acting…
  3. ARTICLE 3. Stop Payment Notice to Construction Lender §§ 8530–8538 · 5 sections
    § 8530 A person that has a lien right under Chapter 4 (commencing with Section 8400) may give a construction lender a stop payment notice.
    § 8532 A claimant may give a construction lender a stop payment notice accompanied by a bond in an amount equal to 125 percent of the amount of the claim. The bond…
    § 8534 (a) A construction lender that objects to the sufficiency of sureties on the bond given with a bonded stop payment notice shall give notice to the claimant of…
    § 8536 (a) Except as provided in subdivision (b), on receipt of a stop payment notice a construction lender shall withhold from the borrower or other person to whom…
    § 8538 (a) The claimant may make a written request for notice of an election by the construction lender under Section 8536 not to withhold funds. The request shall be…
  4. ARTICLE 4. Priorities §§ 8540–8544 · 3 sections
    § 8540 (a) Funds withheld pursuant to a stop payment notice shall be distributed in the following order of priority: (1) First, to pay claims of persons that have…
    § 8542 Notwithstanding Section 8540: (a) If funds are withheld pursuant to a stop payment notice given to a construction lender by a direct contractor or…
    § 8544 The rights of a claimant who gives a construction lender a stop payment notice are not affected by an assignment of construction loan funds made by the owner…
  5. ARTICLE 5. Enforcement of Claim Stated in Stop Payment Notice §§ 8550–8560 · 6 sections
    § 8550 (a) A claimant shall commence an action to enforce payment of the claim stated in a stop payment notice at any time after 10 days from the date the claimant…
    § 8552 If more than one claimant has given a stop payment notice: (a) Any number of claimants may join in the same enforcement action. (b) If claimants commence…
    § 8554 Notwithstanding Section 583.420 of the Code of Civil Procedure, if an action to enforce payment of the claim stated in a stop payment notice is not brought to…
    § 8556 A stop payment notice ceases to be effective, and a person withholding funds pursuant to the notice shall release them, in either of the following…
    § 8558 (a) In an action to enforce payment of the claim stated in a bonded stop payment notice, the prevailing party is entitled to a reasonable attorney’s fee in…
    § 8560 If the claimant is the prevailing party in an action to enforce payment of the claim stated in a bonded stop payment notice, any amount awarded on the claim…
6. CHAPTER 6. Payment Bond §§ 8600–8614 · 9 sections
  - § 8600 (a) This section applies if, before the commencement of work, the owner in good faith files a direct contract with the county recorder, and records a payment…
  - § 8602 Section 8600 does not preclude an owner from requiring a performance bond, payment bond, or other security as protection against a direct contractor’s failure…
  - § 8604 (a) If a lending institution requires that a payment bond be given as a condition of lending money to finance a work of improvement, and accepts in writing as…
  - § 8606 (a) A payment bond under this title shall be conditioned for the payment in full of the claims of all claimants and shall by its terms inure to the benefit of…
  - § 8608 (a) This title does not give a claimant a right to recover on a direct contractor’s payment bond given under this chapter unless the claimant provided work to…
  - § 8609 Any provision in a payment bond attempting by contract to shorten the period prescribed in Section 337 of the Code of Civil Procedure for the commencement of…
  - § 8610 Notwithstanding Section 8609, if a payment bond under this title is recorded before completion of a work of improvement, an action to enforce the liability on…
  - § 8612 (a) In order to enforce a claim against a payment bond under this title, a claimant shall give the preliminary notice provided in Chapter 2 (commencing with…
  - § 8614 Notice to the principal and surety under Section 8612 shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1.
7. CHAPTER 7. Security for Large Project §§ 8700–8730 · 13 sections
  1. ARTICLE 1. Application of Chapter §§ 8700–8704 · 3 sections
    § 8700 (a) This chapter applies if any of the following conditions is satisfied: (1) The owner of the fee interest in property contracts for a work of improvement on…
    § 8702 This chapter does not apply to any of the following works of improvement: (a) A single-family residence, including a single-family residence located within a…
    § 8704 This chapter does not apply to any of the following owners: (a) A qualified publicly traded company or a wholly owned subsidiary of a qualified publicly traded…
  2. ARTICLE 2. Security Requirement §§ 8710–8716 · 4 sections
    § 8710 An owner described in subdivision (a) of Section 8700 shall provide the direct contractor all of the following: (a) Security for the owner’s payment obligation…
    § 8712 If an owner fails to provide or maintain the security required by this chapter, the direct contractor may give the owner notice demanding security. The notice…
    § 8714 It is against public policy to waive the provisions of this chapter by contract.
    § 8716 This chapter does not affect any statute providing for mechanics liens, stop payment notices, bond remedies, or prompt payment rights of a subcontractor,…
  3. ARTICLE 3. Form of Security §§ 8720–8730 · 6 sections
    § 8720 An owner shall provide security by any of the following means: (a) A bond that satisfies Section 8722. (b) An irrevocable letter of credit that satisfies…
    § 8722 A bond under this chapter shall satisfy all of the following requirements: (a) The bond shall be executed by an admitted surety insurer that is either listed…
    § 8724 An irrevocable letter of credit under this chapter shall satisfy all of the following requirements: (a) The letter of credit shall be issued by a financial…
    § 8726 An escrow account under this chapter shall satisfy all of the following requirements: (a) The account shall be designated as a “construction security escrow…
    § 8728 The following provisions govern a deposit to or disbursement from a construction security escrow account under this chapter: (a) Before the commencement of…
    § 8730 If the contract price for a work of improvement is not a fixed price, the amount of security provided under this chapter shall be the guaranteed maximum price…
8. CHAPTER 8. Prompt Payment §§ 8800–8851 · 22 sections
  1. ARTICLE 1. Progress Payment §§ 8800–8802 · 2 sections
    § 8800 (a) Except as otherwise agreed in writing by the owner and direct contractor, the owner shall pay the direct contractor, within 30 days after notice demanding…
    § 8802 (a) This section applies to a contract between a public utility and a direct contractor for all or part of a work of improvement. (b) Unless the direct…
  2. ARTICLE 2. Retention Payment §§ 8810–8822 · 8 sections
    § 8810 This article governs a retention payment withheld by an owner from a direct contractor or by a direct contractor from a subcontractor.
    § 8811 (a) This section is applicable to a contract relating to a private work of improvement entered into on or after January 1, 2026. (b) (1) (A) A retention…
    § 8812 (a) If an owner withholds a retention from a direct contractor, the owner shall, within 45 days after completion of the work of improvement, pay the retention…
    § 8814 (a) If a direct contractor has withheld a retention from one or more subcontractors, the direct contractor shall, within 10 days after receiving all or part of…
    § 8816 (a) If the direct contractor gives the owner, or a subcontractor gives the direct contractor, notice that work in dispute has been completed in accordance with…
    § 8818 If an owner or direct contractor does not make a retention payment within the time required by this article: (a) The owner or direct contractor is liable to…
    § 8820 It is against public policy to waive the provisions of this article by contract.
    § 8822 This article does not apply to a retention payment withheld by a lender pursuant to a construction loan agreement.
  3. ARTICLE 3. Stop Work Notice §§ 8830–8848 · 10 sections
    § 8830 “Stop work notice” means notice given under this article by a direct contractor to an owner that the contractor will stop work if the amount owed the…
    § 8832 If a direct contractor is not paid the amount due pursuant to a written contract within 35 days after the date payment is due under the contract, and there is…
    § 8834 A direct contractor that gives an owner a stop work notice shall give the following additional notice: (a) At least five days before giving the stop work…
    § 8836 Within five days after receipt of a stop work notice from a direct contractor, the owner shall give a copy of the notice to the construction lender, if any.…
    § 8838 (a) The direct contractor or the direct contractor’s surety, or a subcontractor or a subcontractor’s surety, is not liable for delay or damage that the owner…
    § 8840 On resolution of the claim in the stop work notice or the direct contractor’s cancellation of the stop work notice, the contractor shall post, and give…
    § 8842 A direct contractor’s right to stop work under this article is in addition to other rights the direct contractor may have under the law.
    § 8844 (a) If payment of the amount claimed is not made within 10 days after a stop work notice is given, the direct contractor, the direct contractor’s surety, or an…
    § 8846 It is against public policy to waive the provisions of this article by contract.
    § 8848 (a) This article applies to a contract entered into on or after January 1, 1999. (b) This article does not apply to a retention withheld by a lender pursuant…
  4. ARTICLE 4. Claims and Disputes §§ 8850–8851 · 2 sections
    § 8850 (a) The Legislature finds and declares all of the following: (1) It is in the best interests of the state and its citizens to ensure that all construction…
    § 8851 This article shall remain in effect only until January 1, 2030, and as of that date is repealed.
TITLE 3. PUBLIC WORK OF IMPROVEMENT §§ 9000–9566 · 45 sections
1. CHAPTER 1. General Provisions §§ 9000–9100 · 2 sections
  1. ARTICLE 1. Application of Title § 9000 · 1 section
    § 9000 This title applies to a work of improvement contracted for by a public entity.
  2. ARTICLE 2. Claimants § 9100 · 1 section
    § 9100 (a) Except as provided in subdivision (b), any of the following persons that have not been paid in full may give a stop payment notice to the public entity or…
2. CHAPTER 2. Completion §§ 9200–9208 · 4 sections
  - § 9200 For the purpose of this title, completion of a work of improvement occurs at the earliest of the following times: (a) Acceptance of the work of improvement by…
  - § 9202 (a) A public entity may record a notice of cessation if there has been a continuous cessation of labor for at least 30 days prior to the recordation that…
  - § 9204 (a) A public entity may record a notice of completion on or within 15 days after the date of completion of a work of improvement. (b) The notice shall be…
  - § 9208 A notice of completion in otherwise proper form, verified and containing the information required by this title shall be accepted by the recorder for recording…
3. CHAPTER 3. Preliminary Notice §§ 9300–9306 · 5 sections
  - § 9300 (a) Except as otherwise provided by statute, before giving a stop payment notice or asserting a claim against a payment bond, a claimant shall give preliminary…
  - § 9302 (a) Except as provided in subdivision (b), preliminary notice shall be given in compliance with the requirements of Chapter 2 (commencing with Section 8100) of…
  - § 9303 The preliminary notice shall comply with the requirements of Section 8102, and shall also include: (a) A general description of the work to be provided. (b) An…
  - § 9304 A claimant may give a stop payment notice or assert a claim against a payment bond only for work provided within 20 days before giving preliminary notice and…
  - § 9306 If the contract of any subcontractor on a particular work of improvement provides for payment to the subcontractor of more than four hundred dollars ($400),…
4. CHAPTER 4. Stop Payment Notice §§ 9350–9510 · 26 sections
  1. ARTICLE 1. General Provisions §§ 9350–9364 · 8 sections
    § 9350 The rights of all persons furnishing work pursuant to a public works contract, with respect to any fund for payment of construction costs, are governed…
    § 9352 (a) A stop payment notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1, and shall be signed and verified by the…
    § 9354 (a) Except as provided in subdivision (b), a stop payment notice shall be given in compliance with the requirements of Chapter 2 (commencing with Section 8100)…
    § 9356 A stop payment notice is not effective unless given before the expiration of whichever of the following time periods is applicable: (a) If a notice of…
    § 9358 (a) The public entity shall, on receipt of a stop payment notice, withhold from the direct contractor sufficient funds due or to become due to the direct…
    § 9360 (a) This chapter does not prohibit payment of funds to a direct contractor or a direct contractor’s assignee if a stop payment notice is not received before…
    § 9362 (a) Not later than 10 days after each of the following events, the public entity shall give notice to a claimant that has given a stop payment notice of the…
    § 9364 (a) A public entity may, in its discretion, permit the direct contractor to give the public entity a release bond. The bond shall be executed by an admitted…
  2. ARTICLE 2. Summary Proceeding for Release of Funds §§ 9400–9414 · 8 sections
    § 9400 A direct contractor may obtain release of funds withheld pursuant to a stop payment notice under the summary proceeding provided in this article on any of the…
    § 9402 The direct contractor shall serve on the public entity an affidavit, together with a copy of the affidavit, in compliance with the requirements of Chapter 2…
    § 9404 The public entity shall serve on the claimant a copy of the direct contractor’s affidavit, together with a notice stating that the public entity will release…
    § 9406 (a) A claimant that contests the direct contractor’s affidavit shall serve on the public entity a counteraffidavit alleging the details of the claim and…
    § 9408 (a) If a counteraffidavit, together with proof of service, is served under Section 9406, either the direct contractor or the claimant may commence an action…
    § 9410 (a) The affidavit and counteraffidavit shall be filed with the court by the public entity and shall constitute the pleadings, subject to the power of the court…
    § 9412 (a) No findings are required in a summary proceeding under this article. (b) If at the hearing no evidence other than the affidavit and counteraffidavit is…
    § 9414 A determination in a summary proceeding under this article is not res judicata with respect to a right of action by the claimant against either the principal…
  3. ARTICLE 3. Distribution of Funds Withheld §§ 9450–9456 · 4 sections
    § 9450 If funds withheld pursuant to a stop payment notice are insufficient to pay in full the claims of all persons who have given a stop payment notice, the funds…
    § 9452 Nothing in this chapter impairs the right of a claimant to recover from the direct contractor or the contractor’s sureties in an action on a payment bond under…
    § 9454 A person that willfully gives a false stop payment notice to the public entity or that willfully includes in the notice work not provided for the public works…
    § 9456 (a) A stop payment notice takes priority over an assignment by a direct contractor of any amount due or to become due pursuant to a public works contract,…
  4. ARTICLE 4. Enforcement of Payment of Claim Stated in Stop Payment Notice §§ 9500–9510 · 6 sections
    § 9500 (a) A claimant may not enforce payment of the claim stated in a stop payment notice unless the claimant has complied with all of the following conditions: (1)…
    § 9502 (a) The claimant shall commence an action against the public entity and the direct contractor to enforce payment of the claim stated in a stop payment notice…
    § 9504 Within five days after commencement of an action to enforce payment of the claim stated in a stop payment notice, the claimant shall give notice of…
    § 9506 If more than one claimant has given a stop payment notice: (a) Any number of claimants may join in the same enforcement action. (b) If claimants commence…
    § 9508 Notwithstanding Section 583.420 of the Code of Civil Procedure, if an action to enforce payment of the claim stated in a stop payment notice is not brought to…
    § 9510 A stop payment notice ceases to be effective, and the public entity shall release funds withheld, in either of the following circumstances: (a) An action to…
5. CHAPTER 5. Payment Bond §§ 9550–9566 · 8 sections
  - § 9550 (a) A direct contractor that is awarded a public works contract involving an expenditure in excess of twenty-five thousand dollars ($25,000) shall, before…
  - § 9552 If a payment bond is not given and approved as required by Section 9550: (a) Neither the public entity awarding the public works contract nor any officer of…
  - § 9554 (a) A payment bond shall be in an amount not less than 100 percent of the total amount payable pursuant to the public works contract. The bond shall be in the…
  - § 9558 A claimant may commence an action to enforce the liability on the bond at any time after the claimant ceases to provide work, but not later than six months…
  - § 9560 (a) In order to enforce a claim against a payment bond, a claimant shall give the preliminary notice provided in Chapter 3 (commencing with Section 9300). (b)…
  - § 9562 Notice to the principal and surety under Section 9560 shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1.
  - § 9564 (a) A claimant may maintain an action to enforce the liability of a surety on a payment bond whether or not the claimant has given the public entity a stop…
  - § 9566 (a) A claimant does not have a right to recover on a payment bond unless the claimant provided work to the direct contractor either directly or through one or…