Reference
Terms used across this site, defined as the California statutes use them. Where a definition names a code section, that section is the source — not a paraphrase of it.
Licensing and CSLB
A formal pleading initiating a CSLB disciplinary proceeding, conducted under the Administrative Procedure Act rather than in court.
Government Code section 11500 and following, which governs CSLB disciplinary proceedings under Business and Professions Code section 7091(f).
A CSLB enforcement instrument short of an accusation. Failure to comply with a citation’s final order can lead to licence revocation under section 7090.1.
The licence category authorising particular work. Section 7031 requires proof of proper classification, not merely a licence.
The Contractors State License Board, which administers the Contractors State License Law at Business and Professions Code section 7000 and following.
Properly licensed in the correct classification at all times during performance — the standard section 7031(a) requires a contractor to allege.
Recovery by a customer of compensation already paid to an unlicensed contractor, under Business and Professions Code section 7031(b).
A person or entity holding a CSLB licence. Section 7028(a)(2) reaches a licensee working under a suspended licence.
The state of holding a valid licence. Section 7031 requires it continuously during performance, not merely at contract signing.
In sections 7109(a) and (b), a departure “in any material respect.” The statute does not define materiality and appellate treatment is not uniform.
An owner improving their own property who may be exempt from licensing under Business and Professions Code section 7044, subject to conditions.
The person whose experience and appearance qualifies a licence under section 7068. Discipline can cascade to every licence they qualified, under sections 7097 and 7098.
The CSLB Registrar of Contractors, who receives complaints under section 7091 and may grant a good-cause delay of revocation under section 7090.1.
Restoration of a suspended or revoked licence. Section 7102 permits reinstatement after suspension on proof of compliance; after revocation a one-to-five-year bar applies.
Responsible Managing Officer — an officer serving as a licence’s qualifying individual.
Building on speculation for sale rather than under contract with an owner. Fails section 7044’s first exemption category by definition.
A revocation whose effect is suspended. Under section 7124.6, revocations that are not stayed are disclosed indefinitely on the public licence record.
The narrow section 7031(e) exception. Unavailable to anyone never duly licensed in California; otherwise requires an evidentiary hearing and three conjunctive elements.
The CSLB document required to prove licensure where it is controverted under section 7031. The burden rests on the licensee.
Under sections 7109 and 7110, generally understood to require only a general intent to do the act rather than a specific intent to violate the law — though the term is undefined and appellate treatment is not uniform.
Leaving a construction project without legal excuse — a disciplinary ground under Business and Professions Code section 7107.
A legally sufficient reason for stopping work. Section 7107 makes abandonment actionable only in its absence, and whether one exists is fact-specific.
A presumption that shifts the burden of proof but may be overcome by contrary evidence — as under section 7044 where one structure is sold within a year of completion.
A presumption that cannot be rebutted — as under section 7044 where five or more structures are sold or offered within a year after completion.
Payment, liens and bonds
A contractor in direct contractual relationship with the owner. Replaced “original contractor” in the 2012 recodification. Must record a lien before the earlier of 90 days after completion or 60 days after a notice of completion, where others get 30.
The construction project as a whole, as distinct from any one contract on it. Preliminary notice and lien deadlines run from it.
The notice required by Civil Code section 8200 before recording a lien, giving a stop payment notice, or claiming against a payment bond. Due within 20 days of first furnishing work.
A person entitled to assert a lien, stop payment notice, or bond claim.
A lender financing the work of improvement. A claimant in direct contract with the owner must still serve the lender with preliminary notice.
A worker on the project. Under section 8200 a laborer is not required to give preliminary notice.
The recorded document asserting a mechanics lien. Contents and service are governed by Civil Code section 8416.
An owner-recorded notice that can shorten the lien recording window: the deadline becomes the earlier of 90 days after completion or 60 days after the notice for a direct contractor, 30 days for other claimants.
An owner-recorded notice that labour has ceased, generally available after a continuous 30-day stoppage, with the same shortening effect.
A lien properly recorded and, where required, served — as distinct from one merely recorded.
A written demand that the owner or construction lender withhold funds. Reaches money rather than property, and is available on public works where a lien is not.
A stop payment notice given to a construction lender accompanied by a bond equal to 125 percent of the claim under Civil Code section 8532.
The money held for payment of construction costs. Civil Code sections 8500 and 9350 make the statutory route to it exclusive.
Project money not yet paid out — what a stop payment notice reaches, and the reason timing determines whether the remedy has content.
A project bond securing payment to those who furnish work. Required on public works contracts over $25,000 by Civil Code section 9550, at not less than 100 percent of the contract.
The $25,000 bond required by Business and Professions Code section 7071.6 as a condition of holding a licence. A different instrument from a payment bond, with aggregate liability on most claims capped at $7,500.
The party that issues a bond and pays a valid claim, then looks to the contractor for reimbursement.
The party whose obligation the bond secures — typically the direct contractor.
An insurer authorised to issue bonds in California. Required for a public works payment bond under Civil Code section 9554.
Signed under penalty of perjury. Public works stop payment notices must be verified under Civil Code section 9352.
A contractor in contract with another contractor rather than with the owner. Takes the shorter 30-day lien window after a notice of completion.
A provider of materials. A supplier contracting directly with the owner is still not a “direct contractor” for lien deadline purposes.
A party’s position in the contracting chain. Lower-tier claimants must give preliminary notice to the direct contractor, not merely to whoever hired them.
Money withheld from progress payments until completion. On public works, release timing is governed by the Public Contract Code.
Work paid for in whole or part with public funds, as defined for prevailing wage purposes by Labor Code section 1720.
The public entity that awarded the contract and to which a payment bond is given under Civil Code section 9550.
The general prevailing rate of per diem wages for work of similar character in the locality, required on public works over $1,000 by Labor Code section 1771.
The published rate for a craft in a locality. Classification by work actually performed, not job title, is where most exposure originates.
Payroll records required by Labor Code section 1776, containing a written declaration under penalty of perjury — a sworn statement, not an administrative form.
Registration with the Department of Industrial Relations required by Labor Code section 1725.5 and a prerequisite to bidding or being awarded public work under section 1771.1.
The federal statute governing payment claims on federal public works. Separate from California’s scheme and not covered on this site.
A challenge to a public works award. Timelines are short.
Construction defect
A party subject to the Right to Repair Act for new residential construction — a different question from whether a licence was required.
The completion of the original sale. The Right to Repair Act applies where the original close of escrow occurred on or after January 1, 2003.
The Right to Repair Act procedure at Civil Code sections 910 through 938 that precedes suit.
The same procedure described by function: notice, inspection, and an opportunity to repair before litigation.
The written notice under Civil Code section 910 beginning the process. Need not be styled as anything in particular — an ordinary letter listing defects can be one.
See notice of claim. Triggers the 14-day acknowledgment requirement in Civil Code section 913.
The builder’s written confirmation of receipt, due within 14 days under Civil Code section 913. Failure releases the claimant under section 915.
How Civil Code section 914 describes the prelitigation chapter — a structured private process rather than a phase of litigation.
A subcontractor, design professional, supplier or insurer given notice under Civil Code section 916(e) and notified to the claimant.
The scope and timing of an accepted repair. Failure to complete within its time releases the claimant under Civil Code section 925.
Destruction or alteration of evidence. Civil Code section 922 provides that nothing occurring during the repair process may support a spoliation defence.
Suspension of a limitations period. Applies from a request to mediate until the next court day after mediation completes, or the 100-day period, whichever is later.
A defect not apparent by reasonable inspection. Carries the longer windows in Business and Professions Code section 7091(b) and Code of Civil Procedure section 337.15.
A defect a reasonable inspection would reveal. Carries the four-year CSLB complaint window under section 7091(a)(1).
An absolute outer time limit that runs regardless of discovery.
Code of Civil Procedure section 337.15 sets a ten-year absolute limit for latent construction defects, regardless of when discovered.
A rule postponing accrual until discovery. Under Code of Civil Procedure section 338(d) the plaintiff must plead the time and manner of discovery and inability to discover earlier.
Having no contract with the other party. A non-privity plaintiff must proceed in tort and faces both a duty analysis and the economic loss rule.
A builder’s application under Civil Code section 930 to halt an action until the claimant satisfies the prelitigation requirements, with discretionary fees to the prevailing party.
Passing a claim to another party or an insurer for defence or indemnity. Civil Code section 916(e) provides the structured moment to do it.
Contracts, change orders and disputes
An agreement — oral or written, with an owner or a tenant — for a home improvement where the aggregate price exceeds $500, per Business and Professions Code section 7159(b).
The combined price across one or more improvement contracts. Splitting a job across documents does not defeat the $500 threshold.
A written, signed modification. Must state scope, the amount added or subtracted, and the effect on progress payments — and be signed before the work it covers begins.
A payment made before completion. Where the contract provides for them, section 7159.5(a)(4) requires a schedule in dollars and cents.
Capped by Business and Professions Code section 7159.5(a)(3) at $1,000 or 10 percent of the contract amount, whichever is less.
A registrar-approved arrangement that, with a qualifying bond, exempts a contractor from the down payment and progress payment restrictions under section 7159.5(a)(8).
An instrument accepted in place of a performance and payment bond for the section 7159.5(a)(8) exemption.
The consumer notice required by Business and Professions Code section 7159(e)(4), cross-referencing Civil Code sections 8400 and 8404.
The cancellation notice provisions required in a home improvement contract, including the address for mailing and an assistance telephone number.
Plans, specifications, allowances and exhibits brought into the contract through the “List of Documents to be Incorporated into the Contract” heading.
A contractual window to fix a default before the other party may act on it.
The equitable basis on which section 7159.6(c) preserves recovery for work performed despite a non-compliant change order.
A settlement communication stating a position and a demand. Carries no independent legal force, and its date is the sender’s choice.
Correspondence aimed at resolving a dispute rather than creating legal obligations.
Private adjudication by a chosen decision-maker, usually binding with narrow appeal rights.
An arbitrator’s decision. Very difficult to appeal.
A facilitated negotiation with no decision-making power in the mediator. Often a contractual precondition to filing.
The party that prepared the arbitration agreement. Under Code of Civil Procedure sections 1281.97 and 1281.98, missing a 30-day fee deadline waives its right to compel arbitration.
Bringing additional parties into one action. Available to a court under section 1281.2(c) instead of enforcing an arbitration clause.
A non-party entering an existing action.
The pre-trial exchange of evidence. More limited in arbitration than in litigation.
A claim by the defendant against the plaintiff. In small claims, either party may appeal a counterclaim judgment.
An individual rather than an entity. May sue in small claims for up to $12,500, where an entity is capped at $6,250.
A business or organisation. Subject to the lower small claims limit.
Anew. A small claims appeal under Code of Civil Procedure section 116.770 is a complete new trial before a different judicial officer.
The document whose mailing starts the 30-day small claims appeal window.
Liability, insurance and indemnity
A contractual obligation to cover another party’s loss. Limited in construction contracts by Civil Code sections 2782 and 2782.05.
The party protected by an indemnity clause. Section 2782(a) voids indemnity for the promisee’s sole negligence or willful misconduct.
Negligence attributable only to the promisee. The threshold in Civil Code section 2782(a).
A lower threshold used for public agencies and private owners in section 2782, and for general contractors and other subcontractors in section 2782.05. Undefined in either statute.
The obligation to fund a defence, distinct from indemnifying a loss. Section 2782.05 reaches it expressly — “including the cost to defend.”
A party added to another’s liability policy. A different mechanism from indemnity and not voided on the same terms.
A consolidated insurance programme covering multiple parties on a project. Among the section 2782.05 exceptions.
The duty to defend a claim, frequently disputed among owners, contractors and subcontractors.
Authorisation to perform work, issued under local building law rather than the licence law. Section 7110 supplies the disciplinary consequence for disregarding it.
Arrangements easing licensure across state lines. Relevant to contractors operating in California, Nevada and Texas.
If this describes your situation, an attorney affiliated with Bay Legal PC, CA Bar No. 332479, can review it with you.