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Bond Claim Notices

 

California

  1. Basics of a CA Payment Bond (Public & Private Works).
  2. CA Payment Bond Notice Requirements (Public & Private Works).
  3. Enforcing a CA Payment Bond (Public & Private Works).

CA Payment Bond Notice Requirement
In order to have bond claim rights in California, a “Preliminary Notice” must be served to the public entity or property owner, the prime/general contractor, and the construction lender (if any).[1] The term claimant refers to any person or company supplying materials and/or labor to a work of improvement. (The term claimant refers to you.)

The Preliminary Notice should be served no later than twenty days (20) from when the claimant first provided labor, professional services, materials, machinery, fixtures or tools to the job site.[2] If the notice is not served within the required time frame, it may still be served late. However, late notices will limit your bond claim rights to twenty days (20) prior to the service of the notice and anytime thereafter.[3]

For a public works payment bond, the Preliminary Notice is not required for laborers or contractors who have a direct contract with the prime contractor; all other lower tier contractors are required to serve this notice.[4]

If a lower tier contractor fails to serve the Preliminary Notice, they are given a second chance to retain bond claim rights by serving a special “bond claim notice” instead. The bond claim notice must be served to the surety within 75 days after the completion of work as a whole OR if a notice of completion/cessation was filed, then within 15 days from the date the notice was filed. [5] To be on the safe side, it is recommended to serve both notices anyways.

The term “days” are calculated by calendar days and NOT business days unless otherwise stated. Time is calculated by excluding the first day, and including the last, unless the last day is a holiday or weekend, then it is also excluded.[6]

List of Cited Statutes and Case Laws for further research
[1] California Civil Code §§ 8200 and 9300.
[2] California Civil Code §§ 8204 and 9304.
[3] Ibid.
[4] California Civil Code § 9300.
[5] California Civil Code §§ 8612 and 9560.
[6] California Code of Civil Procedure §§ 12, 12(a).

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