California Construction Payment Dispute Attorneys

When the money stops on a construction project

A nonpayment problem on a commercial project is rarely just a late invoice. Owners and developers facing cost overruns often hold back payment, assert backcharges, or point to alleged defects to justify keeping money that is plainly owed for work already in place.

California gives the parties who build and supply a powerful, time-sensitive set of collection tools that most ordinary creditors do not have. The right to a mechanics lien is written into the California Constitution, and the Legislature has layered statutory payment-security and penalty remedies on top of it. The catch is that these rights are governed by hard deadlines that cannot be extended, so the cost of waiting is often the loss of the most valuable leverage.

The California payment-security toolkit

Stone LLP evaluates every collection matter against the full menu of remedies, then pursues the ones that create the most pressure on the party holding the money:

Mechanics lien — a recorded claim against the improved property itself, enforceable by a foreclosure action. On private work it is often the single strongest lever because it clouds title and involves the owner’s lender.
Stop payment notice — a demand that reaches undisbursed construction funds held by the owner or the construction lender, freezing money before it leaves the project.
Prompt-payment penalties — statutory penalties of two percent per month on amounts wrongfully withheld, plus recovery of attorney’s fees by the prevailing party, a fee-shifting remedy that changes the economics of a dispute.
Payment bond and public-works remedies — on public projects, where a lien cannot attach to public property, recovery runs through the payment bond and the public stop payment notice instead.
Breach of contract and the common counts — the underlying claim for the unpaid balance, often paired with quantum meruit and an account stated, with contractual or statutory attorney’s fees where available.

Why timing decides these cases

California’s payment statutes run on a series of cliffs. The preliminary notice generally must go out within roughly the first three weeks of furnishing labor or materials. A mechanics lien must be recorded within 90 days of completion — a window that shrinks to 60 days (direct contractors) or 30 days (everyone else) the moment the owner records a notice of completion. Once recorded, the lien must be enforced by lawsuit within 90 days or it expires by operation of law.

Because California courts treat these as deadlines of repose that cannot be tolled by negotiation, partial payments, or an owner’s promises, the safest approach is to preserve every right early and let the negotiation happen from a secured position.

Key authorities

Cal. Const. art. XIV, § 3 (lien right); Civ. Code §§ 8000–9566 (works of improvement); §§ 8200–8216 (preliminary notice); §§ 8400–8494 (mechanics lien); §§ 8500–8560 (stop payment notice); §§ 8800–8822 (prompt payment).

Work Stone LLP handles

For 45 years, Stone LLP has represented California businesses in commercial disputes from offices in Irvine, Century City, and San Jose. On the construction-payment side, the firm focuses on substantial, document-intensive disputes between businesses — general contractors, subcontractors, and material suppliers seeking payment from owners, developers, and higher-tier contractors on commercial and large private projects across Southern California and statewide.

Call 949-477-9100

Frequently asked questions

Who can use these California construction-payment remedies?

Direct (general) contractors, subcontractors at any tier, material suppliers, and equipment lessors who furnished labor or materials to a work of improvement generally have lien, stop-notice, and bond rights, provided the statutory notice and deadline requirements are met.

How quickly do I need to act if I have not been paid?

As soon as possible. Some rights depend on a preliminary notice served within about 20 days of first furnishing, and the lien recording and enforcement deadlines are measured in days, not years. Early review preserves options that disappear once a deadline passes.

Can I pursue more than one remedy at the same time?

Usually yes. A mechanics lien, a stop payment notice, a prompt-payment penalty claim, and a breach of contract action are generally cumulative, and pursuing them together often produces more leverage than any one alone.

Does it matter whether the project is public or private?

Yes. Mechanics liens attach to private property but not public property. On public works, an unpaid contractor or supplier typically looks to the payment bond and the public stop payment notice instead.

What does it cost to talk to Stone LLP about a payment problem?

Call 949-477-9100 to discuss your situation. The firm can explain which deadlines apply to your project and what steps protect your right to collect.