Legal Question in Construction Law in California

Re: unfinished work

No. That's not the purpose of the bond. The bond is not a performance bond - it is a surety bond, in general subject to claims by persons who have suffered property damage as a result of the contractor's negligence or misconduct.

Your claim is simply for breach of contract. You file suit.

If you properly served a 20 preliminary notice, and your time for recordation of a lien has not expired, you can record a lien against the property.

Before filing a lien, however, you must be sure you are entitled to one. A wrongful lien can subject you to attorneys fees and costs, among other things.

You should consult an attorney.

Good luck.

Re: unfinished work

I must respectfully disagree with my collegue Mr. Guerrini. However, I do agree with him on the fact that you should consult an attorney experienced in construction law to represent you in this matter. Please review my profile and contact me should you seek representation.

I would file a claim on the contractors license bond. More importantly I would file a mechanics lien against the property or properties and a "bonded" stop notice with the owner and construction lender (assuming you properly filed a 20 day preliminary notice as required under the Contractors' State License Law)

Under Business and Professions Code Sec 7071.15(b) the contractor's license bond is for the benefit of a person damaged by the licensee's fraud or deliberate violation of the license law. For a surety to incur liability on a contractor's bond, the violations giving rise to the contractor's liability must constitute basis for discipline under the Contractors' State License Law (Nelson Supply Co. V. Surety of the Pacific (1984) 161 CA3d 490). Furthermore, under Business and Professions Code Sec 7120 willful failure to pay for goods or services rendered in connection with a contractors operations is a ground for discipline and under Business and Professions Code Sec 7108.5 the prime contractor must pay the sub within 10 days after he receives money from the owner and can only withhold certain amounts if there is a good faith dispute. The contractor may have withheld more than he is entitled to under the law.

I suggest you send a demand letter to the contractor stating that you will file a claim against his license bond, a mechanics' lien, and a bonded stop notice under law (Again I am assuming that you properly filed a 20 day preliminary notice as required by the Contractors License Law)within 10 days if he does not make payment as required.

If he does not make payment then file a mechanics lien, bonded stop notice, and send a certified claim letter to the surety against his license bond. Then you must really get an attorney to represent you in foreclosure of the lien and the breach of contract and other actions.