{"id":906141,"date":"2026-09-22T16:18:21","date_gmt":"2026-09-22T22:18:21","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=906141"},"modified":"2026-09-22T16:18:25","modified_gmt":"2026-09-22T22:18:25","slug":"construction-claims-override-construction-contract-possibly-california","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-claims-override-construction-contract-possibly-california\/","title":{"rendered":"Could California\u2019s New Construction Claims Law Override Your Contract?"},"content":{"rendered":"\n

Kirsten Worley, Adam Witt, Jack Branscorme and Ben Codog | Ahead of Schedule<\/a><\/p>\n\n\n\n

Many owners and contractors assume that their construction contract controls how claims and disputes will be handled. After all, substantial time is often spent negotiating notice provisions, mediation requirements, dispute resolution procedures, and payment terms.<\/p>\n\n\n\n

Beginning with many private construction contracts entered into on or after January 1, 2026, that assumption may no longer be entirely correct.<\/p>\n\n\n\n

California\u2019s Private Works Change Order Fair Payment Act (Civil Code \u00a7 8850) establishes a mandatory statutory process for certain construction claims<\/a>. The Act creates specific requirements governing claim notices, response deadlines, payment obligations, mediation, and, in some circumstances, work-suspension rights.<\/p>\n\n\n\n

Perhaps most importantly, the Act is generally non-waivable. In other words, parties should not assume they can simply contract around these requirements.<\/p>\n\n\n\n

Because these provisions have now been effect for a few months, claims implicating these new laws will likely soon arise.  The default of looking at what the parties\u2019 contract dictates may no longer going to be enough.<\/p>\n\n\n\n

Why This Matters<\/strong><\/p>\n\n\n\n

Many construction contracts already contain detailed claim and dispute-resolution provisions. The new statute does not necessarily replace those provisions, but it may require parties to comply with a separate statutory framework before or concurrently with pursuit of contractual remedies.<\/p>\n\n\n\n

That creates a practical challenge for project participants. Compliance with contractual procedures alone may not satisfy the Act\u2019s statutory requirements. Parties may also need to satisfy the Act\u2019s statutory requirements.<\/p>\n\n\n\n

For example, the Act establishes deadlines for owner responses and payment of undisputed amounts. It also creates a process for informal conferences, mediation, and, in some situations, contractor work-suspension rights.<\/p>\n\n\n\n

Failure to comply can carry significant consequences, including prompt-payment penalties and potential project disruption.<\/p>\n\n\n\n

What Should Owners and Contractors Do Now?<\/strong><\/p>\n\n\n\n

Project participants should review their existing contracts and internal claim-handling procedures to determine whether they account for the statute\u2019s requirements.<\/p>\n\n\n\n

Owners, contractors, and subcontractors should ensure that project teams understand:<\/p>\n\n\n\n