The California mechanics’ lien is a powerful tool for contractors, subcontractors and materials suppliers to secure payment of unpaid construction-related debts. A contractor, subcontractor or materials supplier is allowed a lien on real property, based on the value they add to the property during the construction process.
Is the title to this article possibly true? Yes, absolutely! I have seen it happen. Let me tell you how it happens so you can avoid such a result.
It is not uncommon in the construction industry for an out-of-state general contractor to include a provision in a subcontract requiring a California subcontractor to resolve disputes outside the state of California even though the work is to be performed within California. Fortunately, most California subcontractors are immune from this tactic. California law generally prohibits clauses requiring subcontractors to travel outside California to resolve construction disputes.
Most in the construction industry are familiar with the rules of California mechanics’ liens. They know that the Preliminary Notice of Civil Code Section 8034 and 8200-8216 is often the foundational document and that the deadline to record a mechanics’ lien is generally triggered by events occurring at the end of construction, including completion of the work of improvement and the recording of the notice of completion or notice of cessation. Most of these rules are found in California Civil Code sections 8160-8494.
In the world of the building and construction industry, the general rules of contracting are fairly simple. A supplier agrees … Continued
It sometimes happens that a contractor or material supplier records a mechanics lien on your property that becomes expired. Other … Continued
The General Rule in California: The Winner Does NOT Receive Attorney Fees and Costs: There is a common misconception that … Continued
Senate Bill No. 727, Imposing Liability on Contractors for Wage Claims of Subcontractor Employees: California Senate Bill 727 was approved … Continued
©2018 Porter Law Group Inc. All rights Reserved.