Mechanics liens, stop payment notices, and payment bonds are how unpaid contractors, subs, suppliers, and workers get paid. Every one of these tools runs on strict deadlines, so the exam loves to test the numbers: 20 days, 15 days, 30, 60, and 90 days.
California's mechanics lien law is in Civil Code §§8000–9566. It protects people who improve property, but only if they follow each step on time. Miss one deadline and the right is usually gone.
A mechanics lien (gravamen de constructor) is a claim against the real property that was improved. Anyone who provides authorized work has lien rights, including a direct contractor, subcontractor, material supplier, equipment lessor, laborer, and design professional (Civil Code §8400). Work is authorized if the owner requested or agreed to it, or if a contractor, sub, architect, project manager, or other person in charge of the work authorized it (Civil Code §8404).
The lien is for the lesser of the reasonable value of the work or the agreed price (Civil Code §8430). An unlicensed contractor cannot sue to collect for work that requires a license, and a security interest it takes for that payment is unenforceable (B&P §7031). On public works, there is no mechanics lien remedy in the statute; unpaid claimants use a stop payment notice or a payment bond claim instead (Civil Code §9100).
A preliminary notice (notificación preliminar) tells the owner, the direct contractor, and any construction lender that you are working on the project and could claim a lien if not paid. It is a required step before recording a lien, giving a stop payment notice, or making a payment bond claim (Civil Code §8200). It is not a lien.
Worked example
A late preliminary notice
The sub may claim only for work performed from April 20 onward.
Lien deadlines count from “completion.” Under Civil Code §8180, completion happens at the first of: actual completion; the owner occupying or using the project plus a stop in labor; labor stopping for 60 days in a row; or recording a notice of cessation after labor has stopped for 30 days in a row. On a public entity project, completion is acceptance by the entity.
The owner may record a notice of completion (notificación de finalización) with the county recorder on or within 15 days after completion; it must be signed and verified (Civil Code §8182). The owner may record a notice of cessation after labor has stopped for at least 30 days in a row (Civil Code §8188). Recording either notice shortens the time to record liens. The owner must send a copy to the direct contractor and everyone who gave preliminary notice within 10 days of recording. If the owner does not, the shorter deadline does not apply to that person. A homeowner living in a dwelling with four or fewer units is exempt from sending copies (Civil Code §8190).
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