California law requires that prime contractors furnish a payment bond – providing for payment to lower-tiered subcontractors and suppliers – on state and local public works projects with a value in excess of $25,000. There are three conditions that must be satisfied when a claimant makes a claim against a payment bond on a public works project in California: First, generally, the claimant must have served a preliminary notice, unless the claimant is a first-tier subcontractor

I was a T.A. for my high school history teacher, a really smart and nice guy, Mr. Reynolds. In the room at the back of the classroom which served as his office he had the picture above. It’s called “My Wife and My Mother-in-Law” and is taken from a German postcard from 1888. Depending on how you look it, you might see fashionable young lady, or an old lady. Cases can sometimes be like that: You see what you want to see. The next case is also like that. In Lorenzo v. Calex Eng

In a case that I’m frankly surprised I don’t see more of, the 2nd District Court of Appeal of California examined an indemnity claim by a subcontractor against a general contractor and public entity who mistakenly believed that a construction project did not require the payment of prevailing wages. The Nabors Case In Nabors Corporate Services, Inc. v. City of Long Beach , 108 Cal.App 540 (2025), subcontractor Nabors Corporate Services, Inc. sued general contractor Tidelands

It’s called “checks and balances” for a reason. And, generally, it works well so long as there are clear boundaries between the “co-equal” branches of government. In Associated General Contractors of California, Inc. v. Department of Industrial Relations , 108 Cal.App .5th 243 (2025), the 3rd District Court of Appeals upheld a set of regulations issued by the California Apprenticeship Council that contradicted an earlier 2015 ruling of the Court of Appeals. The Associated Gen

According to Dodge Construction Network’s Outlook 2026 Ebook, “the construction industry came roaring into 2025” – with large government investments through the Infrastructure Bill and the CHIPS Act (promoting investment in the domestic semiconductor industry), as well as outsized spending on data centers to support cloud and AI technology – but “throttled back significantly” due to “rapid changes to economic and fiscal policies.” These changes include short-term cost impacts

My father used to make me wash the family cars every weekend . . . rain or shine. The nice thing about washing a car in the rain is that you don't need to dry it. Once, while sudsing up one of the family cars in the rain I spotted a couple of Jehovah Witnesses making house calls along our street. As they approached our house, they looked at me, said something to one another, and decided membership probably wasn't right for our family. If my dad saw that he probably would have

Happy New Year! Hope the holidays were enjoyable for you. During the first session of the California Legislature’s 2025-2026 legislative session, 2,350 bills were introduced, of which 917 bills made it to the Governor’s desk, and of which 794 bills were signed into law. For the design and construction industry the most important bills are a new claims resolution procedure for private works projects, a 5% retention cap on certain private works projects, and a number of change

Contractors working on public works projects are likely familiar with the statutory claims resolution process under Public Contract Code section 9204. Section 9204, which went into effect in 2017 , and which has been amended a couple of times since, provides a claims resolution process for public works projects with the goal of resolving claims before litigation. Section 9204, which currently expires on January 1, 2027 (it has been extended once so far), provides for a three-

It’s not uncommon in construction claims for there to be Insurance and bond issues, whether it’s tendering a claim to your insurer, or claims against a license, payment, or performance bond. Insurance Code section 790.03 sets forth sixteen (16) unfair claims settlement practices by insurers and sureties including: (1) Misrepresenting to claimants pertinent facts or insurance policy provisions relating to any coverages at issue. (2) Failing to acknowledge and act reasonably pr

Nomos LLP partner Garret Murai has been recognized in the 2026 edition of The Best Lawyers in America® in the area of Construction Law.

“The declining significance of privity has found its way to construction law.” So begins the 4th District Court of Appeal’s decision in...

I usually wait until the end of the year to write about new construction laws. But a friend (thanks Marty!) recently reached out about a...

I've lost my share of cases over the years. Winning of course, feels great, and losing doesn't. But losing teaches lessons that winning...

Nomos LLP Partner Garret Murai has been recognized as a 2025 Northern California Super Lawyer honoree in the area of Construction...

Living in California, illegal immigration has been a topic of debate for as long as I can remember. But I can't think of a time when it...

Eating an entire bag of “family” sized potato chips in one sitting. Guilty. Binge watching the entire new season of Black Mirror over a...

Arbitration provisions are increasingly common in construction contracts. Indeed, the boilerplate AIA contract documents include a...

I think it's safe to say that we're well past any lingering economic impacts of COVID-19 although it has undoubtedly left an indelible...

The 2025 Southern California wildfires – the Palisades Fire (January 7, 2025), Eaton Fire (January 7, 2025), Hughes Fire (January 22,...

It’s that time of year again. The second half of the 2023-2024 legislative session saw the introduction of 2,124 bills, of which, 1418...