SUMMARY OF RECENT EFFECTIVE (AND SOON TO BE EFFECTIVE) CHANGES TO CALIFORNIA CONSTRUCTION PAYMENT ENFORCEMENT STATUTES Aprl 18, 2012
CHANGES EFFECTIVE JANUARY 1, 2011 FORMER CURRENT C.C. 3084.* C.C. 3084. Record len wth the recorder. Must serve owner wth the Mechanc s Len and Notce of Mechanc s Len. Notce and Affdavt of servce recorded. Servce by frst class mal permtted. *As of July 1, 2012: C.C. 8416 C.C. 3146.** Len s unenforceable as a matter of law f clamant fals to comply Ls Pendens may be recorded. Ls Pendens shall be recorded on or before 20 days flng of the Mechanc s Len. **As of July 1, 2012: C.C. 8461. 1
CHANGES EFFECTIVE JANUARY 1, 2012 CURRENTLY EFFECTIVE JULY 1, 2012 C.C. 3082-3268 Codfy Calforna s mechanc's len laws. C.C. 3082-3268 are repealed. C.C. 8000-9566 - Codfy Calforna s mechanc s len laws. Organzed nto 3 categores: 1. Works of mprovement generally ( 8000 8154); 2. Prvate works of mprovement ( 8160-8848); and 3. Publc works of mprovement ( 9000-9566) C.C. 3090 Materalman C.C. 3095 Orgnal Contractor C.C. 3097 (Prvate Work) Prelmnary 20-Day Notce C.C. 3097(b) - Except the contractor all persons who have a drect contract wth the owner shall, as a necessary prerequste to the valdty of any clam of len, clam on a payment bond cause to be gven to the constructon lender a wrtten prelmnary notce as prescrbed by ths secton. C.C. 3098 C.C. 8028 Materal Suppler C.C. 8018 Drect Contractor C.C. 8200(e)(2) Prelmnary Notce A clamant wth a drect contractual relatonshp wth an owner or reputed owner s requred to gve prelmnary notce only to the constructon lender. C.C. 9300-9306. The publc works prelmnary notce requrements are set forth n No substantve changes to former C.C. 3098. 2
C.C. 3103 - Stop Notce C.C. 3086 - Completon" ncludes: (a) The occupaton or use of a work of mprovement by the owner accompaned by cessaton of labor. (b) The acceptance by the owner of the work of mprovement. (c) A cessaton of labor for 60 days, or a cessaton of labor for 30 days f the owner fles for record a notce of cessaton. C.C. 8044 - Stop Payment Notce C.C. 8180 (Prvate Work) Completon no longer ncludes acceptance by the owner on prvate work projects. C.C. 9200 (Publc Work) Acceptance stll consttutes completon. However, cessaton must be for a contnuous perod of 60 days to result n completon. If the work s subject to acceptance by any publc entty, completon s the date of such acceptance; provded, however, that, except as to contracts awarded under the State Contract Act, a cessaton of labor on any publc work for a contnuous perod of 30 days shall be a completon thereof. C.C. 3093 - The notce of completon shall be recorded wthn 10 days after completon. C.C. 8182 (Prvate Work) - An owner may record a notce of completon on or wthn 15 days after the date of completon of a work of mprovement. C.C. 9204 (Publc Work) A publc entty may record a notce of completon on or wthn 15 days after the date of completon of the work of mprovement. C.C. 3154 No formal notce requrement. Pettoner must verfy that the len clamant s unwllng to execute a release of the len C.C. 3154 - The prevalng party shall be enttled to attorneys' fees not to exceed two thousand dollars ($2,000). C.C. 3143 Mechanc s len release bond shall be n a penal sum equal to 11/2 tmes the amount of the clam C.C. 3171 (Prvate Work)- If the owner, constructon lender or any orgnal contractor or subcontractor dsputes the valdty of any stop notce, he may fle a release bond. C.C. 8482 At least 10 days before flng petton, owner must gve clamant notce demandng a release of len. C.C. 8488 - The prevalng party s enttled to reasonable attorney's fees. C.C. 8424 Mechanc s len release bond shall be n an amount equal to 125 percent of the amount of the clam of len... C.C. 8510 (Prvate Work) A person may obtan release of funds wthheld pursuant to a stop payment notce by gvng the person wthholdng the funds a release bond. 3
C.C. 3096/3171 (Prvate Work). Payment bonds and stop notce release bonds must be executed by good and suffcent suretes. C.C. 3262(a) Nether the owner nor orgnal contractor shall wave, affect, or mpar the clams and lens of other persons except by ther wrtten consent... [that] follows substantally one of the forms set forth n ths secton. C.C. 3262 Sets forth all four waver and release forms. C.C. 8510/8606 The bond shall be gven by an admtted surety nsurer. C.C. 8122 An owner, drect contractor, or subcontractor may not wave, affect, or mpar any other clamant s rghts under ths part unless and untl the clamant executes and delvers a waver and release under ths artcle. C.C. 8132: Condtonal Upon Progress. Mnor substantve change that requres the clamant to dentfy, by date and amount, all prevously executed condtonal releases that have not been pad. C.C. 8134: Uncondtonal Upon Progress. No substantve change. C.C. 8136: Condtonal Upon Fnal. Mnor substantve change requrng dentfcaton of clamant s customer. C.C. 8138: Uncondtonal Upon Fnal. No substantve change. C.C. 3115 Tme for Recordaton of len by drect contractor. C.C. 3262 Tme for Recordaton of len by a Clamant other than the drect contractor. C.C. 3144 Tme for commencement, foreclosure acton. C.C. 8412 No substantve changes. C.C. 8414 No substantve changes. C.C. 8460 Combnes both former sectons. C.C. 3145 Credt. 4