California Construction Payment Dispute Attorneys
California construction payment dispute attorneys helping contractors, subcontractors, and suppliers pursue unpaid project balances.
Not getting paid is the most common — and most damaging — construction dispute. Every day you're owed money is a day your business bleeds. Whether you're a contractor waiting on a final payment, a subcontractor whose invoices are being ignored, or a supplier chasing an unpaid account, you have legal options that go far beyond sending another invoice.
Why It Happens
Payment disputes arise from owners withholding retention, general contractors failing to pay subs, disputed change orders, alleged defects used as leverage, and bad-faith payment denials. California's prompt payment statutes impose penalties on parties who withhold payment without a good-faith dispute.
California's prompt payment statutes impose strict timelines: owners must pay general contractors within 30 days of invoice on private works (Civil Code §8800); general contractors must pay subcontractors within 7 days of receiving payment (Civil Code §8814); retention must be released within 45 days of project completion (Civil Code §8812). Violations carry a 2% per month penalty plus attorney fees. Additional remedies include mechanics liens (Civil Code §8000 et seq.), stop notices (Civil Code §8500 et seq.), and payment bond claims (Civil Code §9550 et seq.). On public works, the Public Contract Code §7107 governs retention release and imposes a 2% monthly penalty for improper withholding. The Penal Code §484b also criminalizes diversion of construction funds.
What's at Risk
- Losing lien rights by missing preliminary notice or lien recording deadlines
- Accepting partial payment without understanding the lien waiver implications
- Failing to document the basis for disputed amounts
- Allowing the statute of limitations to run on contract claims
- Not pursuing all available remedies simultaneously
- Waiting too long to take legal action — deadlines pass
- Signing unconditional lien waivers before receiving payment
- Accepting 'final payment' without preserving claims for disputed amounts
- Failing to send proper written notices required by the contract
- Negotiating directly with the other party while deadlines expire
A subcontractor completed $950K of electrical work on a commercial project. The general contractor withheld payment claiming the sub's work caused project delays. We documented the actual delay causes, filed a mechanics lien, and initiated arbitration. The sub recovered full payment plus $85K in prompt payment penalties within 4 months.
Past results do not guarantee future outcomes. Every case is different.
Mechanics Lien vs. Stop Notice vs. Bond Claim
| Feature | Mechanics Lien | Stop Notice | Bond Claim |
|---|---|---|---|
| What it attaches to | The real property (land & improvements) | Construction funds held by owner or lender | The surety bond (not the property) |
| Available on public works? | No — government property cannot be liened | Yes — especially powerful on public works | Yes — required by law on public works over $25K |
| Preliminary notice required? | Yes — within 20 days of first furnishing | Yes — same as mechanics lien | Yes — within 20 days of first furnishing |
| Deadline to file/serve | 90 days after completion (60 days after NOC) | Same as mechanics lien deadline | 30 days after NOC (90 days if no NOC) |
| Enforcement deadline | 90 days after recording lien | 90 days after serving stop notice | 6 months after last furnishing |
| Effect on project | Clouds title; blocks sale/refinancing | Freezes construction funds immediately | Surety must respond; may halt GC payments |
| Best used when | Property has equity; owner is solvent | Funds are still held by owner/lender | GC is insolvent or on public works |
These remedies are not mutually exclusive — GLG typically pursues all available remedies simultaneously to maximize leverage.
Calculate Your Exact Deadlines
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Frequently Asked Questions
- We identify and pursue every payment remedy available — lien, stop notice, bond, contract
- We send demand letters that get results because they're backed by a litigation strategy
- We file mechanics liens and stop notices before deadlines expire
- We pursue prompt payment penalties where the withholding was unjustified
- We recover attorney fees where the contract or statute allows
California prompt payment penalties start accruing immediately.
2% monthly interest plus attorney fees — every day you wait costs you money. Stop waiting and start recovering.
Start Your Case Review (949) 666-8797
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