CHAPTER 7. Security for Large Project

Chapter 7 added by Stats. 2010, Ch. 697, Sec. 20.

§§ 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…