Contractor Law is the comprehensive California contractor law resource — covering homeowner rights, contractor obligations, licensing, liens, bonds, disputes, and every legal tool available when a project goes wrong in California. All content is authored by a licensed attorney and published by Bay Legal PC.
When construction fails to meet building codes, approved plans, or the standards of Civil Code §896, property owners have the right to pursue claims for repair costs and damages.
Learn more →When a contractor, subcontractor, or owner fails to perform according to the terms of the construction contract — scope, timeline, payment, or specifications.
Learn more →California mechanic's lien law allows contractors, subcontractors, and material suppliers to secure payment by placing a lien on the property where work was performed.
Learn more →Unreasonable delays caused by contractors, owners, or design professionals can result in significant financial damages — lost revenue, increased costs, and consequential losses.
Learn more →Retention disputes, progress payment failures, disputed change orders, and the new SB 440 claims process for private construction projects effective January 2026.
Learn more →Performance bonds and payment bonds protect project owners and subcontractors. Understanding bond claim procedures, deadlines, and notice requirements is essential.
Learn more →The new SB 440 Private Works Change Order Fair Payment Act establishes statutory procedures for change order disputes on private projects effective 2026.
Learn more →California BPC §7031 bars unlicensed contractors from recovering payment. Understanding licensing requirements and defenses protects both owners and contractors.
Learn more →California has some of the most detailed construction standards and property owner protections in the country. Commercial and residential construction projects are governed by a complex framework of statutes, building codes, and common law principles that determine the rights and obligations of owners, contractors, subcontractors, design professionals, and material suppliers.
The landscape changed significantly in 2026 with the enactment of SB 440 (Private Works Change Order Fair Payment Act) and SB 61 (5% retention cap), which together create new mandatory procedures for payment disputes and retention on private construction projects.
Whether you are a property owner who has discovered defects, a contractor facing a payment dispute, or a subcontractor asserting lien rights, understanding the applicable legal framework is the essential first step.
For negligent construction, you have 3 years from discovery to file (but no more than 4 years from completion). For patent defects, 4 years under CCP §337. For latent defects, the statute of repose is 10 years from substantial completion under CCP §337.15. Contract claims have a 4-year limit.
SB 800 (Civil Code §895 et seq.) establishes pre-litigation procedures for residential construction defect claims. Homeowners must notify the builder, allow inspection, and consider repair offers before filing suit. It sets specific performance standards for different building components.
No. BPC §7031 bars unlicensed contractors from recovering any compensation for work requiring a license. The property owner can also recover all payments already made to the unlicensed contractor under BPC §7031(b).
SB 440 establishes a statutory claims process for private construction projects entered into on or after January 1, 2026. It requires owners to respond to claims within 30 days, pay undisputed amounts within 60 days, and subjects late payments to 2% monthly interest.
Effective January 1, 2026, SB 61 (Civil Code §8811) caps retention on private construction contracts at 5% of progress payments. This matches the existing cap for public works projects and applies to contracts entered into on or after January 1, 2026.
You must serve a preliminary 20-day notice, then record the lien within 90 days of completion (or 60 days for direct contractors). The lien must be enforced by filing a foreclosure action within 90 days of recording. Strict compliance with Civil Code §8400 et seq. is required.
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