Important Changes to California Construction Forms Beginning on July 1, 2012: The Impact of 2010 Senate Bill 189

The most important changes to California construction law in decades will become effective on July 1, 2012. Signed into law in 2010, Senate Bill 189, reorganized and renumbered all those California Civil Code provisions dealing with such familiar construction claim remedies as the Mechanics Lien, Stop Notice and Bond Claim. While this effort greatly simplified the legal rules and made them easier to follow, there are a number of important substantive changes to these laws. These changes include new definitions, new rules and new procedures found in new Civil Code Sections 8000 to 9566. These changes also mean that new forms will be necessary. As a result of these changes, all those in the construction industry should begin using the new forms and procedures beginning on July 1, 2012. Failure to do so could result in loss of important legal rights. Some of the most important changes to the forms are outlined below. A website to access the new forms free of charge is also identified below.

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Sacramento Air Board Construction Mitigation Rule 1052: Upcoming Costly Regulation

Another costly new regulation is heading our Industry’s way early next year. The Sacramento Air Quality District (AQMD) has recently released a proposal that would force every construction project (Over 2,000 sq ft Commercial) to reduce their total project baseline carbon emissions by 20% Nitrate Oxide (NOx) and by 45% Particulate Matter (PM 10). Submittals of full equipment lists, project durations, and the size of the job-site are all necessary for the Air Board’s “scientific determination” of whether a project has met its carbon emission targets. If companies do not meet the stringent new guidelines, they will be required to pay a fee ranging from a minimum of $16,400 to a maximum of $38,960 per ton of (NOx). Particulate matter will also be charged via Cap & Trade, but this fee has not yet been released to the public.

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