Our Guide to Preliens, Waivers, Mechanic's Liens, and Bond Claims in California
California
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This is an overview of the state's statutory approach to lien law and what contractors might want to focus on to ensure lien rights are established timely, correctly, and effectively.
While we are happy to provide this guide as a quick reference, we HIGHLY encourage that you work with a construction attorney to help you with your particular circumstances in our complex construction lien law environment.
California Quick Overview
| Pursuant Code | California Civil Code Section 8200-8216 | |
| Prelien Required for Private/Commercial Projects | Yes | |
| Prelien Required for Public Projects | Yes | |
| CA Statutory Relief | Full Price | |
| Lien Milestone Event | Overall project completion | |
| Lien Enforcement Deadline | 120 to 180 days | |
| Waivable Lien Rights | No | |
| Supplier to Supplier Rights | Likely No | |
| Prelien Document Name(s) | Preliminary Notice, Preliminary 20-day Notice | |
| Prelien Minimum Information | Name and address of the claimant, description of services, the party who contracted for the services, and a statement that the claimant may file a lien. | |
| Prelien Minimum Notifications | Owner, Construction Lender, and Prime Contractor (if the claimant is a subcontractor) | |
| Prelien Recording Requirement | None | |
| Prelien Notarized | No |
Understanding the Prelien Process on Construction Projects in California by Role
In general, a preliminary notice is required to preserve lien rights and must be sent within 20 days of first furnishing labor or materials. It applies to contractors, subcontractors, material suppliers, and equipment lessors, and must be sent to the owner, lender, and prime contractor if applicable.
Possible Exceptions, Special Circumstances, and Caveats in California
Owner Occupied Residential: Owner-occupied residences under $1,000 are exempt.
Custom Fabrication: Custom fabrication must also be noticed.
Architect/DesignProfessionals: Architects and design professionals have limited lien rights.
Retainage: Retainage is treated the same for preliminary notices.
Mechanic's Liens in California
In California, a mechanics lien must be recorded after completion of the work and before the earlier of 90 days after project completion or 60 days after a Notice of Completion or Cessation is recorded. A foreclosure lawsuit must be filed within 90 days after recording the lien.
Bond Claims in California
On public projects, claimants must serve a 20-day preliminary notice on the public entity and prime contractor. Bond claims must generally be made within 15-90 days after last furnishing labor or materials depending on project type. Action on the payment bond must be filed within 6 months after completion of the project.
Construction Lien Waivers in California
Required Format: California is one of a dozen states where all waivers MUST substantially follow statutorily required verbiage to be valid so be sure to check with your constuction attorney and consult the relevant state statutes.
Required Notarization: California does not require waivers to be notarized.
California's statutory forms must be used as-is, without adding provisions, as altering the language poses significant legal risks and may result in penalties for using non-compliant forms.
Learn more about waivers here, including the when and how to use various types of waivers, the difference between a Lien Waiver and a Lien Release, what to look for before signing, and more.
- As a client, you'll have free access to our system that easily creates statutorily correct lien waivers.
- Through our technology partner Prelien Pro, you can also access best-in-class lien waiver management software, allowing you to easily track, collaborate, and share lien waivers with all your trade partners.
Assessors' websites in California counties
Most often, the county Assessor's office is the 'go-to' resource for finding online lien-related information for construction project parcels, including ownership records, special warranty deeds, and more. Counties that we've not yet found online (those with '*') link to a Google search for your convenience.
Other Important Construction Links in California
Frequently Asked Questions (FAQs) on California Lien Processes for Contractors
What is a 20-Day Preliminary Notice in California?
It is a document that contractors, subcontractors, suppliers, and equipment lessors must serve within 20 days of first providing labor, services, equipment, or materials to preserve their lien or bond claim rights.
Who must receive the Preliminary Notice?
The property owner, the general contractor (if not contracted directly with the owner), and the construction lender (if applicable).
What happens if I miss the 20-day deadline?
You can still serve a late Preliminary Notice, but you will only preserve lien rights for labor or materials provided within the 20 days before serving the notice and thereafter.
Do I have to notarize the Preliminary Notice in California?
No. Notarization of the Preliminary Notice is not required.
Is there a dollar threshold for requiring a Preliminary Notice?
No. A Preliminary Notice is generally required for all projects regardless of the contract amount.
We Set the Standard for the Construction Industry
Not only do we provide you with the tools, knowledge, and team to ensure you feel confident your rights are secured, but we're prepared for the trenches and ready to coordinate with your legal team when things "go sideways" on one of your projects.
