California Lien Law In For A Change…On May 17, 2012 By Seth Smiley
Over the past few years the California Legislature has been tinkering with its construction lien laws, both public an private. There have been numerous write-ups with commentators chiming in on whether the changes are a good thing or a bad thing. Nevertheless, many have happened and more changes are set to come shortly.
As of July 1, 2012 the governing statutes will be assigned to new numbers and a new section of the California Civil Code. Jones Day did a very comprehensive article back in January of this year outlining the changes. Here is an excerpt from the article of how the code articles are going to be changed in numbering:
“Effective July 1, 2012, the existing Mechanics Lien Law (commencing with Section 3082 of the Civil Code) will be repealed and replaced with new provisions in three titles relating to: (i) works of improvement generally (commencing with Civil Code Section 8000); (ii) private works of improvement (commencing with Civil Code Section 8170); and (iii) public works of improvement (commencing with Civil Code Section 9100).” See the full article here.
This is a big deal for contractors, lawyers and document preparation companies because the entire landscape is changing. Even if the substance of the law is the same, lawyers will tell you that words and punctuation can be very costly when left up to new interpretation.
More recently another construction law blog gave a more brief version of the new changes that have gone into and will be going into effect. Mark Budwig of Government Contracts Advisor posted these in his March 2, 2012 post.
The key here is not to panic but to embrace the changes and be the savvy contractor who knows about the changes and does not get rattled. Another important factor is to outsource trivial knowledge like this to trusted sources like an attorney or a more efficient service such as Zlien.com.