Legal Question in Construction Law in California

Compensation for performed work

Our construction company, structural steel, had taken on a job to erect a school building in CA. From the first day we set foot on the jobsite we had nothing but problems. Detailing on this job caused the biggest error. Our customer subcontracted this job to us without consent of his customer. The job was suppose to last one or two days at the most. With absolutely minimum effort of our customer, and with a relatively good work relationship with the general contractor on this job, we basically took over the job. Credentials of this customer seem to look good, being a bigger firm. If we had not solved all these problems, other trades of construction would not be able to perform their job. Prelim, stop notice filed I assumed the school district would at least have the decency to contact us after numerous phonecalls and letters. Before assigning a lawyer on this case, I would like to find out if there is nothing else I can do. Is there a higher entity than School district?


Asked on 3/28/03, 9:50 pm

2 Answers from Attorneys

Thomas W. Newton Tims & Newton

Re: Compensation for performed work

Unfortunately, I think you?ll find that the school district is top of the heap in this case. Most school districts are autonomous governmental units, not answerable to the local city or county government.

I?m heartened to know that you?ve served the 20-day prelim and the stop notice, hopefully all within the required time frames. Remember, on a public works job, a late 20-day prelim does NOT relate back.

I?m curious to know why you?re being stonewalled for payment? What have the general and the district said in response to your queries? Are they giving excuses or just stonewalling completely? ALSO, Has the district raised any question about substituting a subcontractor without permission? The Public Contract Code contains provisions about substituting subs on a public works job. Those provisions may be in play in this situation.

I understand your interest in getting everyone?s attention without having to hire counsel ? that makes perfect sense if you can make it happen. Along those lines, have you made contact with the general contractor?s payment (or labor & materials) bond surety? By statute, the general would be required to post such a bond. You may find that a letter putting the surety on notice of a claim may make the general at least pay attention.

You need to be very careful about time frames. Since you?re doing the structural, I?d guess that the job is still on-going. Just be aware that enforcing stop notice rights or payment bond rights on public works have some quirky procedural issues and slightly different time frames than a simple mechanic?s lien on a private job.

Let me know if you have other questions, and best of luck.

Now, forgive me for attaching the inevitable caveat: The foregoing information is provided as an accommodation only, and can not be considered specific legal advice based on a comprehensive review of relevant facts, documents and applicable law. Provision of the information cannot be construed as creating an attorney-client relationship.

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Answered on 3/28/03, 11:31 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Compensation for performed work

What is your firm's prior experience in public contract work? If you're beginners, you'll find it's very different from contracting in the private arena. There is monumental red tape and nit-picking and petty chiseling, more than making up for the generally excellent creditworthiness of quasi-governmental entities.

If you need legal help, find a lawyer with SPECIFIC experinece in the field of public contracts, expect to be patient, and be grateful if you escape with your skin, to say nothing of making a profit on the job.

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Answered on 3/29/03, 2:29 am


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