California gives contractors, subcontractors, and suppliers three powerful tools to secure payment. Each has different deadlines, different eligibility rules, and different strategic advantages. This guide explains when to use each — and when to use all three simultaneously.
You're a subcontractor on a private project and the GC won't pay
File a mechanics lien to cloud the property title and a stop notice to freeze any funds still held by the owner or construction lender. Use both simultaneously — they're complementary, not mutually exclusive.
You're a supplier on a public works project
No mechanics lien rights on public property. File a stop payment notice to freeze public funds and a bond claim against the Little Miller Act payment bond. Serve your 20-day preliminary notice first.
The general contractor is insolvent or has filed bankruptcy
If the GC is insolvent, the payment bond is your best recovery vehicle — the surety is independently liable. Also file a mechanics lien against the property as a backup.
The owner is about to sell or refinance the property
A mechanics lien clouds title and blocks the sale or refinancing. File immediately — the owner cannot close escrow with an unresolved lien. This creates maximum leverage for settlement.
Construction funds are still held by a construction lender
A stop notice served on the construction lender freezes the undisbursed loan funds. The lender cannot release funds to the owner while a valid stop notice is pending. Act before the next draw.
You're a direct contractor (you have a contract directly with the owner)
Direct contractors are exempt from the 20-day preliminary notice requirement. Record your mechanics lien within 90 days of project completion and file foreclosure within 90 days of recording.
Not sure which applies to you? Start your case review — we'll identify every remedy available and every deadline that applies.
These remedies are not mutually exclusive. In most payment disputes, you should pursue all available remedies simultaneously to maximize leverage and recovery.
| Feature | Mechanics Lien Civil Code §8000 et seq. | Stop Notice Civil Code §8500 et seq. | Bond Claim Civil Code §9550 et seq. |
|---|---|---|---|
| What it is | A security interest recorded against the property title | A statutory demand that freezes construction funds held by the owner or lender | A claim against the payment bond posted by the general contractor or owner |
| Who can use it | Direct contractors, subcontractors, material suppliers, design professionals | Subcontractors, material suppliers (not direct contractors on private works) | Subcontractors, material suppliers on public works or bonded private projects |
| Preliminary notice required | Yes — 20-day preliminary notice required (except direct contractors and laborers) | Yes — same 20-day preliminary notice required | Yes — 20-day preliminary notice required on public works |
| Deadline to file/serve | 90 days after project completion (or 60 days after Notice of Completion/Cessation) | Before the owner pays out the funds; 30 days after Notice of Completion on public works | Within 15 days of recording the lien on private works; 30 days after completion on public works |
| Deadline to enforce | Foreclosure lawsuit must be filed within 90 days of recording the lien | Lawsuit must be filed within 90 days of the stop notice | Lawsuit must be filed within 6 months on public works (Little Miller Act) |
| Effect on project | Clouds the property title — blocks sale, refinancing, and new construction loans | Immediately freezes construction funds held by the owner or construction lender | Surety must respond; may halt GC payments and trigger bond investigation |
| Works on public projects | No — no mechanics lien rights on public property | Yes — stop payment notice is the equivalent remedy on public works | Yes — Little Miller Act payment bonds are required on public works over $25,000 |
| Works on private projects | Yes — primary remedy on private construction | Yes — effective when funds are still held by owner or lender | Only if a payment bond was posted (not required on most private projects) |
| GC is insolvent | Lien still attaches to property — owner may be liable | Effective if funds haven't been released yet | Best remedy — surety is separately liable regardless of GC solvency |
| Governing statute | Civil Code §8000 et seq. | Civil Code §8500 et seq. (private); Public Contract Code §9350 et seq. (public) | Civil Code §9550 et seq. (private); Public Contract Code §9550 et seq. (public / Little Miller Act) |
These deadlines are absolute. Missing the preliminary notice, lien recording, or foreclosure deadline permanently eliminates your rights — there are no extensions and no excuses. If you're unsure whether a deadline has passed, call us immediately.
Yes — and in most cases you should. A mechanics lien, stop notice, and bond claim are complementary remedies that attack the same problem from different angles. Filing all three simultaneously maximizes your leverage and ensures you don't lose rights if one remedy is later challenged. GLG routinely pursues all available remedies concurrently.
You may still have lien rights for work performed within the 20 days before you serve the notice. For work performed before that window, your lien rights are lost — but you may still have contract claims and other remedies. Call us immediately to assess your options. Do not assume your rights are gone.
A mechanics lien creates significant leverage but doesn't guarantee payment. It clouds the property title, preventing sale or refinancing, which motivates the owner to resolve the dispute. To actually collect, you must file a foreclosure lawsuit within 90 days of recording the lien. GLG handles the entire process from preliminary notice through foreclosure.
If the property has no equity, a mechanics lien provides less leverage. In that scenario, a stop notice (if funds are still held) or a bond claim (if a payment bond exists) may be more effective. We assess all available remedies and recommend the strategy most likely to result in actual recovery.
Yes. If you don't pay a contractor, subcontractor, or supplier who worked on your home, they can record a mechanics lien against your property. This clouds your title and can prevent you from selling or refinancing. If you receive a preliminary notice or a recorded lien, contact us immediately — there are defenses and procedures to challenge invalid liens.
Every payment dispute is different. Our intake team will review your situation, identify the issues to discuss, and coordinate the appropriate next step with GLG.