1. Is E-Verify Going to be Required State Wide?

    California contractors should be aware that while the state of California doe not require the use of the federal government's E-Verify Program yet, several California cities do. E-Verify is an Internet-based system that allows contractors and other businesses to determine the eligibility of their em…Read More

  2. Are Written Change Orders Needed to Collect for Extra Work?

    Construction contracts universally contain a requirement that any change order or extra work order be in writing and signed prior to the work being performed. Generally, when project directives are issued that change the scope of work but no formal written change order is issued or amount for the ch…Read More

  3. Public Entity Must Pay for Scope of Work Not Disclosed

    The California Supreme Court in LAUSD v. Great American Insurance Company; Hayward Construction Company (2010) 49 Cal.4th 739, held that where the contractor can establish that a public entity "knew material facts concerning the project that would affect..." the contractor's " bid or performance and…Read More

  4. No Pay for Contractor Starting a Job Unlicensed

    The Court in Alatriste v. Cesar's Exterior Designs, Inc. (2010) 183 Cal.App.4th 656 found that a homeowner was allowed to sue to recover all monies paid to a contractor who began performance of work while unlicensed, even though the contractor obtained its license during the performance of the work.…Read More

  5. Lis Pendens Service Requirements for Mechanics’ Liens

    The new law requires the recordation of a lis pendens after filing a lawsuit to foreclose on a mechanics' lien and service on all parties who have an interest in the property. So, the claimant will have to get a title report run to determine who has an interest in the property and to serve them all …Read More

  6. Required Notice of Mechanics’ Liens to Property Owners

    As of January 1, 2011 all mechanics' lien claimants must give notice of a mechanics' lien to the property owner. Civil Code section 3084 now requires the mechanics' lien to contain the following language: "The following statement, printed in at least 10-point boldface type. The letters of the last s…Read More

  7. Employers Warned of Strict I-9 Enforcement

    On January 20, 2011, John Morton, Director of United States Immigration and Customs Enforcement ("ICE"), announced the establishment of an Employment Compliance Inspection Center ("ECIC") in Crystal City, Virginia, near ICE Headquarters. The ECIC will be staffed by 15 auditors who will support ICE's…Read More