-
Jun29
Two Substantive Changes in California Construction Law You Need to Know Now
Posted by GibbsGiden Under Construction and Public Contracts
2012
1. Statutory Remedies:
Effective July 1, 2012, new changes in mechanics lien and stop notice laws will affect owners, public agencies, contractors, design professionals and suppliers. The new law will modify construction law remedies (Civil Code §§ 8000 et seq.) on both private works and public works of improvement. These will alter the notice requirements for mechanics liens, stop payment notices and payment bond claims. The changes affect the terms of notice forms that were previously used, the statutory release forms, and the rules affecting stop payment notices and bond claims.
To read more about this change please use the link below to review the recent article published by the CEB Real Property Law Reporter and written by our construction law attorneys Michael I. Wayne Esq. and Christopher E. Ng, Esq.:LINK: “Change is Coming to California’s Mechanic Lien Law”
This article is reprinted from the Real Property Law Reporter, copyright 2012 by the Regents of the University of California. Reproduced with permission of Continuing Education of the Bar – California (CEB). No other republication or external use is allowed without permission of CEB. All rights reserved. (For information about CEB publications, telephone toll free 1-800-CEB-3444 or visit our web site – CEB.com.)2. Subcontract Indemnities on Commercial Projects:
With respect to commercial construction subcontracts entered into after January 1, 2013, a new law (Civil Code § 2782.05) limits indemnity agreements by subcontractors in favor of general contractors, construction managers and other subcontractors, by making void any indemnity to the extent claims arise out of the active negligence or willful misconduct of the general contractors, construction managers and other subcontractors, or their agents, or for defects in design furnished by those persons, or to the extent the claims do not arise out of the scope of work of the subcontract. This change does not apply to residential projects or public works, which have other rules and limitations on indemnification agreements.
Questions or Comments? Contact Us at:
Gibbs, Giden, Locher, Turner & Senet, LLP
1880 Century Park East, Suite 1200
E-mail: cng@gibbsgiden.com or call (310) 552-3400The content contained herein is published online by Gibbs Giden Locher Turner Senet & Wittbrodt LLP (“Gibbs Giden”) for informational purposes only, may not reflect the most current legal developments, verdicts or settlements, and does not constitute legal advice. Do not act on the information contained herein without seeking the advice of licensed counsel. For specific questions about any of the content discussed herein or any of the content posted to the Gibbs Giden website please contact the article attorney author or send an email to info@gibbsgiden.com. The transmission of information by email, over the Gibbs Giden website, or any transmission or exchange of information over the Internet, or by any of the included links is not intended to create and does not constitute an attorney-client relationship. For a complete description of the terms of use of this information and the Gibbs Giden website please see the Legal Notices section at /legal-disclaimer. This publication may not be reproduced or used in whole or in part without written consent of the firm.
Copyright 2012 Gibbs Giden Locher Turner Senet & Wittbrodt LLP ©
