Effective January 1, 2015, Business and Professions Code Section 7071.6 will require all contractors have either a contractor’s license bond or cash deposit filed with the California State Licensing Board in the sum of $15,000.00. The increase will only apply to homeowner, labor and fraud complaints. The $7,500.00 remains in effect for all other claims.Read more »
Under Business and Professions Code §7108.5 (all public and private works projects) and Public Contract Code §7107 (public works projects not for a state agency) and Public Contract Code §10262 (state projects), a direct contractor must pay a subcontractor within 7 days of receipt of payment. Failure to do so subjects the offending contractor to […]Read more »
Failure to pay a subcontractor, supplier or rental company can land the offendee in jail and lighten their wallet. Penal Code Section 484(b) provides that any person who diverts construction funds intended to pay for labor, services, materials or equipment risks fines and jail time! The Section “484b. Any person who receives money for the […]Read more »
Contractor who does bad work or not all work promised, can be criminally prosecuted (and lose his license)!
In People v. Danny Victor Williams, 218 Cal. App. 4th 1038 (5th Dist., August 8, 2013) case, a fire protection contractor was convicted of violating Penal Code sections 386, 484(b), 487, subdivision (a), and Health and Safety Code, resulting in three felony convictions and numerous misdemeanor convictions for violating an assortment of State Fire Marshal […]Read more »
Alert! Serving a false Stop Payment Notice can result in a loss of more than just Stop Payment Notice rights!
The July 1, 2012, amendments to the Mechanics’ Lien law continued the additional penalty for serving a false Stop Payment Notice. Not only does the offender suffer the loss of the right to participate in the distribution of any funds withheld but Section 8504 also includes the further penalty of forfeiting “… all right to […]Read more »
In the “What’s New” page on the CalTrans website, the most recent posting is from March 2010. Bonding Around Stop Notices Discontinued Effective March 2010, the Department will not honor any bonds placed by a prime contractor to prevent a stop notice. This is to enforce prompt payment to subcontractors. CalTrans procedures as to how […]Read more »
Under the new Civil Code §8400, “A person that provides work authorized for a work of improvement, including, but not limited to, the following persons, has a lien right under this chapter: (a) Direct contractor. (b) Subcontractor. (c) Material supplier. (d) Equipment lessor. (e) Laborer. (f) Design professional.” The a-f sections are restrictive and clearly […]Read more »
In the case of Douglas E. Barnhart, Inc. v. CMC Fabricators, Inc., 211 Cal. App. 4th 230 (2012), CMC Fabricators (“CMC”), a subcontractor to the prime contractor, Douglas E. Barnhart, Inc. (“Barnhart”), refused to sign a subcontract tendered by Barnhart because it contained terms inconsistent with CMC’s bid for a public work of improvement. This […]Read more »
During the last ten years, I have represented many types of clients, general contractors, subcontractors, suppliers of materials, equipment rental companies, testing companies, trade professionals and even temporary employees services. Among my clients over the last ten years, I have represented clients who build roads and bridges, clients who supply guard rails for many of […]Read more »
Final Reminder – TOMORROW – The “Construction Collection” Seminar December 5, 2012- Based on the book “Construction Collection”
We still have room for you! Get your reservations in now! TOMORROW! December 5, 2012 from 9:00 a.m. to 1:30 p.m. Paradise Pier Hotel, 1717 South Disneyland Drive, Anaheim This seminar, taught by the book’s author and construction attorney Robert A. Weissman and his construction paralegal, co-author and co-seminar instructor for 17 years, Susan Shaffner, […]Read more »