Welcome to your daily briefing on construction developments in California. Today we're covering 5 key stories including updates on california construction headlines, background & context. Let's dive in.
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In most CA jurisdictions, the lien filing deadline runs from last day on the project OR last delivery of materials, whichever is later — but several states use a project-wide cutoff (substantial completion) regardless of when your specific work ended. Counting the wrong start date is the leading cause of waived liens.
A blown lien deadline drops your collateral down to a personal-guaranty claim, which often means recovery cents on the dollar. The window is short — 60 to 120 days in most states.
"Pay-when-paid" sets a timing condition only — the GC must still pay even if the owner never does. "Pay-if-paid" creates a true condition precedent — no owner payment, no GC payment to subs. Many states will not enforce pay-if-paid clauses without unmistakably clear language; ambiguity defaults to pay-when-paid.
The risk allocation between subcontractors and GCs hinges on this one phrase. Subs who sign pay-if-paid contracts effectively underwrite owner credit risk on top of project risk.
A bid bond protects the owner if the bidder refuses to enter the contract; it pays the difference between the rejected bid and the next responsive bid. A performance bond covers contractor non-performance during the project. A payment bond protects unpaid subcontractors and suppliers. Each has different claimants and triggers.
Subs frequently file claims against the wrong bond and lose them on procedural grounds without ever reaching the merits. Knowing which bond covers your specific exposure is table stakes for collections.
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