California Business and Professions Code section 7031 has historically imposed a severe and unforgiving penalty on any licensed contractor or subcontractor (“licensee”) performing any construction work after its contractor’s license becomes suspended or is revoked. The penalty for many years has been a prohibition against the licensee bringing an action to collect payment owed and […]
It is well known in California Construction circles that the “Pay If Paid” clause is illegal in this state. There is a great distinction, though, between this clause and a similar clause, known as a “Pay When Paid” clause. A pay if paid clause allows a contractor to tell a subcontractor that if the contractor […]
California Business and Professions Code 7159, first enacted in 2004, was intended as a consumer protection measure to protect homeowners hiring contractors for home improvement work. The legislation sought to meet this laudable goal by dictating the terms to be used in home improvement contracts. covering everything from mandatory contractual language, lists of documents to […]
With the looming possibility of tariffs causing sudden and significant increases in the prices of building materials within the construction industry, contractors, subcontractors and others who contract to perform construction work can suffer significant losses. This is particularly true when the prices they must pay for materials rise significantly between the time they sign a […]
The Notice of Non-Responsibility: Only Limited Protection from Contractor, Subcontractor or Supplier Mechanics Lien Claims In California, a powerful legal mechanism—the mechanics lien—enables laborers and those who supply materials and services to construction projects to obtain full payment. The mechanics lien stems from a provision in the California Constitution (Cal. Const., Art. XIV, §3; see […]
