Serving All of California

MECHANIC'S LIEN LAW AND RELATED REMEDIES

Table of Contents

I.	For Each Project/Customer
II.	California 20-Day Preliminary Lien Notice
III.	Mechanic’s Lien
IV.	Stop Notice – Public Works
V.	Stop Notice – Private Works
VI.	Payment Bond – Public Works
VII.	Payment Bond – Private Works
VIII.	Subdivision Improvement Bond
IX.	Federal Miller Act
X.	Contractor’s License Bond

 

1.   Obtain Owner information - name, address, and telephone

2.   Obtain Contractor/Customer information - name, address, and telephone

3.   Obtain Lender information, if applicable - name, address, and telephone

4.   Determine status of project - Notice of Completion recorded; project completed; ongoing, abandoned, etc.

5.   Obtain Accurate description of real property/project location

a.   Street address

b.   Tract number

c.   Lot number

d.   Accessor's Parcel Number

6.   Obtain copy of any applicable Bond - (you are entitled to a copy) Note: Obtain copy of the bond from the general contractor, architect, owner or the Public Entity - usually the building department, construction division, public works department, engineering department, facilities department, etc.

a.   Public Works - Labor and Material Payment Bond

b.   Federal Miller Act Bond

c.   Private Works - Labor and Material Payment Bond

d.   Subdivision Improvement Bond

e.   Contractor's License Bond (CSLB will give you this info)

7.   Prepare California 20-Day Preliminary Lien Notice

a. Prepare and serve as soon as equipment is delivered

JUST DO THIS AUTOMATICALLY WITH EACH NEW PROJECT

PUBLIC OR PRIVATE WORKS

1. Prepare and serve within 20 days of first delivery of equipment, materials, services

2. Serve by certified mail on:

a. Owner

b. Contractor (your customer)

c. Construction lender

3. Retain Green Cards for proof of service.

Requirements/Procedures

1.   Serve - California 20-Day Preliminary Lien Notice (certified mail) (retain green cards)

2.   If you contracted directly with owner you do not need a 20-day notice.

3.   Record - Mechanic's Lien (at County Recorder's office in county where project is located) within 90 days of last work on project.  Note -  If a notice of completion is recorded within 30 days of NOC.

4.   File - Lawsuit within 90 days from date Mechanic's Lien is recorded

5.   Record, file, and serve - Notice of Pending Action - within 5 days after filing lawsuit

After Settlement/Award

6.   Record - Release of Mechanic's Lien

7.   Record, File - Withdrawal of Pending Action

Requirements/Procedures

1.   Serve - California 20-Day Preliminary Lien Notice (certified mail) (retain green cards)

a.   If you contracted directly with owner you do not need a 20-day notice

2.   Serve - Stop Notice (certified mail) (retain green cards) on:

a.   State project - director of department which awarded contract

b.   Other public entity - on controller, auditor, disbursing officer controlling disbursements of project funds - call public entity to verify correct person/department

c.   Include check for $2.00 to the public entity so they must inform you as to the recording of any Notice of Completion, Acceptance or Cessation

- within 30 days after Notice of Completion, Acceptance or Cessation is recorded

or

- within 90 days after completion or cessation, if no Notice of Completion, etc. recorded

3.   File - Lawsuit anytime after the expiration of 10 days from the date of service of stop notice and before:

a. expiration of 180 days after completion of the work or improvement - if no notice of completion or cessation is recorded

or

b. 120 days after the recordation of a notice of completion or cessation.

4.   File and Serve - Notice of Commencement of Action (on public entity)

 After Settlement/Award

5.   Serve - Release of Stop Notice

Note: You must obtain a bond in the penal sum of 125% of the claim

Requirements/Procedures

1.   Serve - California 20-Day Preliminary Lien Notice (certified mail) (retain green cards)

a. If you contracted directly with owner you do not need a 20-day notice

2.   Serve - Stop Notice (certified mail) (retain green cards) on:

a. Owner or Architect

b. Construction Lender
- within 90 days of last work on project

3.   File. Lawsuit anytime after 10 days after service of stop notice and before: 180 days of last work on project

After Settlement/Award

4.   Serve – Release of Stop Notice

Note: Obtain copy of the bond from the general contractor, architect or the Public Entity - usually the building department, construction division, public works department, engineering department, facilities department, etc.

Requirements/Procedures

1.   Serve - California 20-Day Preliminary Lien Notice (certified mail)(retain green cards)

a. If you contracted directly with owner you do not need a 20-day notice

or

1.   Serve - Notice to Principal and Surety (certified mail)(retain green cards) on:

a. General contractor

b. Bonding company

- within 15 days of recording of Notice of Completion

or, if no Notice of Completion

- within 75 days of completion of project

2.   File - Lawsuit within six months of:

If Notice of Completion, Acceptance or Cessation:

i. 30 days after recording Notice of Completion; Acceptance qr Cessation

(ie 210 days after recording Notice of Completion, Acceptance or Cessation)

If no Notice of Completion, Acceptance or Cessation:

ii. 90 days after completion or cessation

(ie 270 days after completion or cessation)

3.   File and Serve – Notice of Commencement of Action (on Public entity).

Requirements/Procedures

1.   Serve - California 20-Day Preliminary Lien Notice (certified mail)(retain green

cards)

a. If you contracted directly with owner you do not need a 20-day notice

or

1. Serve - Notice to Principal and Surety (certified mail)(retain green cards) on:

a. General contractor

b. Bonding company

- within 15 days of recording of Notice of Completion

or, if no Notice of Completion

- within 75 days of completion of project

2.   File - Lawsuit within four years from date clain arose.

 or,

If the bond was recorded prior to the commencement of the work of improvement, within six months from the date of completion.

Requirements/Procedures

1.   Serve - California 20-Day Preliminary Lien Notice (certified mail)(retain gr cards)

a. If you contracted directly with owner you do not need a 20-day notice

2.   Serve - Notice of Claim on Subdivision Improvement Security

- within 90 days of last work on project

3.   File - Lawsuit within 90 days of service of Notice, and/or 90 days of recording of mechanic's lien (whichever is sooner)

Requirements/Procedures

1.   Serve - Notice to Contractor (certified mail)(retain green cards) on:

a.   Prime/General contractor

- within 90 days of your last work on project

2.   File - Lawsuit (Federal court - U.S. District Court) after: 90 days from your last work and: within 1 year from your last work on project

Requirements/Procedures

1.   Obtain bond information (bonding company, bond number, bond amount- $10,000.00, unless for swimming pool, effective dates of bond) from the Contractors State License Board (they will do over telephone, San Diego (619)455-0237)

2.   Serve - written notice of claim to bonding company, include claim amount and back-up documents

3.   File - Lawsuit within 2 years from expiration, inactivation, revocation or cancellation of the license period in which the claim arose

Form Provided by: BEARD HOBBS, ATTORNEY AT LAW

7844 LA MESA BOULEVARD, LA MESA CA 91941-3610 (619) 698-0977

COPYRIGHT 1997, BEARD HOBBS, ATTORNEY AT LAW

MASTER LIENS

A Construction Document Preparation Company

4215 Spring Street, Suite 215   |   La Mesa, California 91941   |   Telephone:  (619) 460-9020   |   Facsimile:   (619) 460-9025