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Phone: 949-540-0320
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Laguna Hills Civic Center Building
24031 El Toro Road
Suite 260
Laguna Hills, CA 92653
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In California, construction payment disputes can severely disrupt project timelines and negatively impact your business. Whether you’re dealing with delayed payments, non-payment, or disputes over contract terms, understanding how to effectively manage these issues is crucial. Here are essential steps contractors should follow to protect their rights and secure prompt payments:

Keeping detailed records of all contracts, invoices, payment schedules, correspondence, and change orders is fundamental. Accurate documentation will support your claims if disputes arise, helping to ensure clarity and accountability for all parties involved.
California law requires contractors and subcontractors to serve a preliminary notice (commonly known as a 20-Day Preliminary Notice) within 20 days of starting work or delivering materials. Serving this notice preserves your lien rights and alerts property owners and lenders to your involvement in the project, ensuring you're included in payment considerations.
If you're not paid for labor or materials provided, filing a mechanic’s lien can protect your financial interests. In California, strict deadlines apply—generally within 90 days of completing work. Missing this deadline can result in the loss of your lien rights, so timely action is critical.
For public construction projects, contractors often cannot file a mechanic’s lien, but California law provides alternative remedies like stop notices and payment bond claims. These tools can help contractors secure payment from funds held by project owners or bond sureties.
Resolving payment disputes through negotiation or ADR methods, such as mediation or arbitration, is often faster and more cost-effective than litigation. ADR also preserves professional relationships and can result in mutually beneficial outcomes.
When disputes escalate or become complex, consulting with a knowledgeable construction attorney can be instrumental in protecting your rights. An attorney can guide you through California's specific legal requirements, assist with lien filings, negotiate settlements, and represent you in court if necessary.
At Carno Law Group, we are committed to providing legal support for contractors facing payment disputes in California construction projects. We help clients secure payments owed, protect lien rights, and resolve disputes efficiently, allowing them to focus on successful project completion.
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Phone: 949-540-0320
Laguna Hills Civic Center Building
24031 El Toro Road
Suite 260
Laguna Hills, CA 92653
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