Private Works Change Order Fair Payment Act.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Chaptered
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill, the Private Works Change Order Fair Payment Act, establishes a process for resolving disputes related to change orders and site improvements on construction projects in California. It requires owners to provide a written response to contractor or subcontractor claims within 30 days, offering a timeframe for settlement through informal conference or mediation. If disputes remain, the claims are subject to binding mediation or the existing contract dispute resolution process. The act aims to ensure timely and fair payment for construction work and reduce costly litigation.
Key provisions
- Establishes a claim resolution process for contractors and subcontractors regarding change orders.
- Requires owners to provide a written response to claims within 30 days.
- Mandates informal conference and mediation for unresolved disputes.
- Defines key terms such as ‘claim,’ ‘owner,’ and ‘project manager.’
- Specifies interest accrual on undisputed amounts not paid in a timely manner.
- Allows contractors to suspend work if payment is not received.
- Sets a sunset date for the act's provisions (January 1, 2030).
Who is affected
- Construction contractors
- Subcontractors
- Construction owners
- Small businesses
- Disadvantaged business enterprises
Notable changes
- Creates a formal process for resolving change order disputes, moving away from reliance on existing contract provisions.
Bill text
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Sponsors
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2 on record
Primary sponsor
Cosponsor
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