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  • 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: mwayne@gglts.com or call (310) 552-3400

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