Legal Question in Construction Law in California

Re: CALTRANS not paying contract

Well, CALTRANS like anyone else has to live up to their contract obligations, but pursuing claims on a public works project agains a public entity is "a whole 'nother world," and you will probably need the assistance of someone (an attorney, probably, but maybe another contractor or a contractors' professional organization) who is well versed in public contract law to assist you in either negotiating your way out of your jam or preparing a lawsuit, if necessary.

Among other obstacles you'll have to deal with (if you have to sue) is the Tort Claims Act, which requires a prospective claimant against a public agency to file a special pre-suit notice of the potential claim, and despite the name, the requirement applies to contract actions as well as actions based upon torts.

If there is a bright spot in this picture, it is that if you do get a judgment, the judgment debtor is pretty well heeled and unlikely to disappear into the woodwork where you can't collect on your judgment.

Re: CALTRANS not paying contract

I am assuming that you are a properly licensed subcontractor of the GC on the project and have a contract with the GC. If you are not properly licensed you are out of luck. Provided that you are a properly licensed sub, I assume that you complied with the statutory obligations and provided a 20-day preliminary lien notice for public works within 20-days from when you started work. If you complied with the 20 days notice requirements per Civil Code 3098 then I suggest you do the following if your money is past due.

1) Immediately file a "bonded stop notice" with CALTRANS. You must call an insurance company or surety to get the stop notice bond. File the bonded stop notice by certified mail with CALTRANS. This will force CALTRANS to withhold the money listed in the stop notice from the GC and make sure it is available for your recovery. If you can not obtain a bond for your stop notice then file a regular stop notice.

2) File a claim on the GC's "Payment bond" immediately. Contact the GC's payment bond company and get the forms and file the claim.

3) Write a letter demanding payment from the and giving them a short amount of time to pay.

4) File a claim with CALTRANS and let them know you have not been paid.

Next hire an attorney to sue on the stop notice, payment bond, and contract remedies immediately if payment is not received within a short amount of time.

Because your question is very vague that is the best advise I can give without more information.

Should you need representation please do not hesitate to contact me. If the amount of money is substantial, I suggest hiring an experienced attorney who is familiar with public contract law such as our firm.

Thanks you for your question.