CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - WEDNESDAY, JUNE 24, 2026

California Enacts Change Order Fair Payment Act

California capitol building top

Both owners and contractors engaged in private works construction should ensure their teams are aware of this new law and be prepared to comply with its procedures.

March 24, 2026
Michael J. Baker - Snell & Wilmer

For private works construction contracts entered on or after January 1, 2026, recent legislation establishes a claims and dispute resolution process for change orders. The law is codified at Civil Code § 8850. A synopsis of the pertinent provisions includes the following:

  1. Submitting a Claim. Contractors or subcontractors must submit a detailed, documented claim when requesting additional time or payment.
  2. Owner’s Response Time. The owner must meet and confer within thirty (30) days after receiving the claim. Within ten (10) days of meeting, the owner must provide a written statement identifying which portions of the claim are undisputed and which are disputed. An owner’s failure to respond is treated as disputing the entire claim.

Mr. Baker may be contacted at mjbaker@swlaw.com


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