By Mary A. Salamone, Atkinson, Andelson, Loya, Ruud & Romo
On September 9, 2013, Governor Jerry Brown signed into law Assembly Bill 44 (AB 44) which amends the Subletting and Subcontracting Fair Practices Act contained in Public Contract Code section 4100 etseq. As a result, beginning July 1, 2014, AB 44 requires all prime contractors submitting bids on public construction projects in California to provide the subcontractor’s Contractors State License Board (CSLB) license numbers on their subcontractor designation forms.
Current law under the Subletting and Subcontracting Fair Practices Act requires that any public entity taking bids for the construction of a public construction project must require prime contractors bidding on the project to Continue reading
1. Time. Suppose S, a concrete sub, completes the concrete work on a residence on June 1. Ninety days later, the entire residence is finished and the owner moves in. 10 days after that, 100 days after finishing its part of the work, the concrete contractor then records a mechanic’s lien. Is it timely? Yes. The 90 days runs from completion of the entire work of improvement. Time is computed from the completion of the work of improvement as a whole.
The theory is that a potential lien claimant can always find out when the 90 day period starts to run by going to the job site and observing whether there is Continue reading
Recovery on the payment bond
Suppose O hires K to build a residence for $100,000. K builds the residence, O pays the $100,000 and K becomes bankrupt then unpaid subs and materials suppliers record mechanic’s liens against O’s property. O finds that, in order to preserve is property it has to pay an additional $30,000 worth of mechanic’s liens claims. How is O protected from paying the additional $30,000 and how are subs and material suppliers protected so that they are paid their $30,000?
- The owner may require the contractor and sometimes the subs to produce a payment bond guaranteeing payment for work and materials. If there are mechanic’s lien claims, the owner looks to the bonding company to Continue reading
Recording and Serving a Mechanics Lien Continued from Mechanics Leans: Part 1
- You need to prepare and serve a preliminary notice before you can record and serve a mechanic’s lien.
- A mechanic’s lien is a secured lien on real property-like a deed of trust -it gives the groups that are covered by the legislation and California constitutional code a secured interest in the property of the owner-it applies to contractors, subcontractors, architects, engineers and material suppliers and a variety of contractors related to performing works of improvement on real property.
- A mechanic’s lien is obtained for labor, services, equipment or material provided to a work of improvement. A work of improvement is Continue reading
Requirements for Preliminary Notice
- Every job that a subcontractor works on over $400 a preliminary notice is required by the contractor’s license law to give a preliminary notice.
- The preliminary notice must be properly prepared and served in order to record a mechanic’s lien and obtain a secured position in the property that you working on
- The preliminary notice must be properly prepared and served in order to claim the dollars that are being held by the owner and lender or escrow or joint check control pursuant to a stop payment notice.
- The preliminary notice must be properly prepared and served in order to Continue reading
By Ron Pierce, RB Pierce, a Professional Law Corp.
“I do not like money; money is the reason we fight.”—Karl Man
“Money won is twice as sweet as money earned.”—Paul Newman
Despising money is easy for someone who holds someone else’s money. Sometimes, one must fight to gain what one has earned.
Historically, on California private works projects, lenders hold the money for construction work. Yet lenders have used such money to make disbursements to themselves, paying interest, loan fees, and their other non-construction expenses over contractors’ stop payment notice claims. In doing so, lenders have Continue reading
SUBCONTRACTOR ON FEDERAL CONSTRUCTION PROJECT IN CALIFORNIA MAY SUE PRIME GOVERNMENT CONTRACTOR FOR PAYMENT UNDER MILLER ACT, ALTHOUGH IT LACKED A CALIFORNIA LICENSE
IN THE CASE OF Technica LLC v Carolina Casualty Insurance Co et al (2014) DJDAR 5353
Technica was a subcontractor on a Federal construction in California. The prime contractor was Candelaria–The district court would not allowed Technica to recover under a Miller Act claim for payments due under its subcontract–although Technica was not licensed in California. The 9th Circuit Court of Appeal reversed Continue reading
HOMEOWNERS MUST COMPLY WITH BUILDER’S PRE-LITIGATION PROCEDURES IN PURCHASE AGREEMENT BEFORE SUING FOR ALLEGED CONSTRUCTION DEFECTS UNDER RIGHT TO REPAIR ACT
THE MCAFFREY GROUP INC (PETITIONER) V THE SUPERIOR COURT OF CALIFORNIA COUNTY OF FRESNO(RESPONDENT–JESUS CITAL ET. AL REAL PARTIES IN INTEREST 2014 DJDAR 3712(2014
This case is a petition for a writ of mandate brought by McAffrey Group which is a builder and developer of single family homes in Fresno. Real parties in interest own 24 homes within the development–19 of those homes are owned by 32 individuals who purchased their homes directly from McCaffrey. Continue reading
When the lawyer died and went to Heaven, he confronted St Peter at the Pearly Gates. “Your Honor, there must be some mistake!” he protested vehemently. “I’m still a healthy young man, much too young to die! Why, I’m only forty-seven years old!”
“HMMM,” murmured St Peter, consulting his files. Looking up, he shook his finger at the lawyer reprovingly. “According to your time sheets you’re ninety-six.”