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
Tag: california
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
California’s Fair Payment Act: What Every Owner, Developer, and Contractor Should Know About SB 440
Matthew DeVries | Best Practices Construction Law While most states have enacted various forms of prompt payment laws for construction projects, California Senate Bill 440, known as the Private Works Change Order Fair Payment Act, marks a pivotal change in how payment obligations related to change orders are handled on private construction projects. Signed into law on October… Continue reading California’s Fair Payment Act: What Every Owner, Developer, and Contractor Should Know About SB 440
No Cross-Complaint Needed: Contractor Can Fight Co-Defendant’s Summary Judgment
Keith E. Smith | Wood Smith Henning & Berman In a decision of first impression, the California Court of Appeal in RND Contractors, Inc. v. WRSE (2025) 112 Cal.App.5th 697, clarified whether a co-defendant may oppose another defendant’s motion for summary judgment without having first filed a cross-complaint. The case arose from the collapse of a high school… Continue reading No Cross-Complaint Needed: Contractor Can Fight Co-Defendant’s Summary Judgment
Call Me Maybe: California’s Fair Claims Settlement Practices Regulations
Garrett Murai | California Construction Law Blog It’s not uncommon in construction claims for there to be Insurance and bond issues, whether it’s tendering a claim to your insurer, or claims against a license, payment, or performance bond. Insurance Code section 790.03 sets forth sixteen (16) unfair claims settlement practices by insurers and sureties including:… Continue reading Call Me Maybe: California’s Fair Claims Settlement Practices Regulations