Those Involved in Private Construction Agreements in California Must Act Now to Prepare for New Claim Resolution Requirements

Laurence Phillips | Procopio, Cory, Hargreaves & Savitch The clock is ticking for anyone involved in negotiating or administering private construction agreements in California. Beginning January 1, 2026, the Private Works Change Order Fair Payment Act (SB 440) will reshape how change orders and claims arising from them are handled on private construction projects. Private… Continue reading Those Involved in Private Construction Agreements in California Must Act Now to Prepare for New Claim Resolution Requirements

Cities Relying On Housing Overlays May Face “Builder’s Remedy” Under New Court Decision

Daniel R. Golub, William E. Sterling and Luca Trumbull | Holland & Knight Highlights California’s Second District Court of Appeal recently held that local governments cannot satisfy their Regional Housing Needs Allocation (RHNA) obligations by using zoning “overlays” that allow, but do not require, residential development. Residential overlay zoning is a very common practice in housing… Continue reading Cities Relying On Housing Overlays May Face “Builder’s Remedy” Under New Court Decision

9204 Meet 8850. Public Works Claims Processes Now Apply to Private Works, With Some Differences

Garret Murai | California Construction Law Blog Contractors working on public works projects are likely familiar with the statutory claims resolution process under Public Contract Code section 9204. Section 9204, which went into effect in 2017, and which has been amended a couple of times since, provides a claims resolution process for public works projects with… Continue reading 9204 Meet 8850. Public Works Claims Processes Now Apply to Private Works, With Some Differences

California Mandates Important New Rules for Private Construction Projects

Tricia Block, Jeffrey Kirzner, Michael McCauley, Daniel McMillan, Matthew Silveira and Carolyn Woodson | Jones Day In Brief The Situation: Beginning with contracts executed on or after January 1, 2026, two new California laws take effect: California Civil Code sections 8850 and 8811. Section 8850 has particularly significant ramifications for construction contracts on most private construction… Continue reading California Mandates Important New Rules for Private Construction Projects

New 5% Retention Cap for California Private Projects: Key Impacts for Contracting Parties

Allison B. Etkin | Akerman Effective January 1, 2026, California will implement significant changes to private construction payment practices. Joining nine other states, Senate Bill 61, signed by Governor Gavin Newsom on July 14, 2025, amends California’s Prompt Payment Statute to establish a mandatory 5% cap on retention for private construction contracts. Until now, California law… Continue reading New 5% Retention Cap for California Private Projects: Key Impacts for Contracting Parties