Payment Protection Rights for Los Angeles Wildfires

California Mechanic’s Lien and Bond Claim Rights: Rebuilding After the Wildfires

To say the Los Angeles wildfires were devastating is an understatement. Businesses and homes lost, and the recovery efforts have been and will be nothing short of massive. Amid the devastation, construction crews work tirelessly to rebuild, from restoring homes to reestablishing vital infrastructure.

But for many material suppliers, subcontractors, and contractors, the rebuilding process isn’t just about rebuilding, it’s about ensuring they’re paid for their materials and services. Unfortunately, in the rush to get things back to normal, payments can get delayed, overlooked, or simply ignored. This is why protecting your construction mechanic’s lien and bond claim rights is not just important, it’s essential.

Los Angeles Wildfire Recovery: Payment Protection and Infrastructure Rebuilding Rights

Devastating events, like fires, earthquakes, and floods, skyrocket the demand for contractors, materials, and services. Projects are pushed through quickly, sometimes without proper funding in place (i.e., the insurance claims & issues), which can lead to payment delays or even disputes that make getting paid harder than it should be. Mechanic’s liens and bond claims are designed to give subcontractors and material suppliers a way to protect their interests and ensure you’re compensated, even if the payment chain starts to break down.

While the details outlined in California mechanic’s lien and bond claim statutes are specific and require strict compliance, here’s an at-a-glance look at the steps and timeframes to protect construction mechanic’s lien and bond claim rights.

California Mechanic’s Lien (Private Construction Projects)

California Bond Claim (Public Construction Projects)

Rebuilding after Los Angeles Wildfires: How to Protect Your Mechanic’s Lien and Bond Claim Rights

• Serve Preliminary Notices – Always. California statute is quite clear, you should serve a preliminary notice, upon all parties, within 20 days from first furnishing. (You can learn more about California’s 20 Day Preliminary Notice here.) If you’ve missed the deadline, send the notice as soon as possible – you could still protect future furnishings.

• Keep Close Tabs on Deadlines. Make sure you understand the deadlines and file on time, or you may lose your right to file. Our team and technology are here to track and easily manage your mechanic’s lien and bond claim deadlines for you, but if you’d prefer to do it on your own, keep California’s statute link handy.

• Monitor Invoices. Keep up with open invoices and subsequent payments. Be aware of delays and change orders. If payments start to slow, don’t wait, file your California mechanic’s lien or bond claim – just because the deadline is “30 days from Completion” does not mean you have to wait that long to file.

• Document Everything. Good documentation is key when filing a construction mechanic’s lien or bond claim. Keep detailed records of contracts, invoices, communications, work completed, and any payment issues. Having this documentation on hand will make it easier to prove your case if a payment dispute arises.

• It’s More than Your Customer. Some parties in the ladder of supply may face financial difficulties — whether it’s contractors filing for bankruptcy, insurance claims getting delayed, or property owners struggling to pay. Complicated payment chains aren’t a new phenomenon in construction, especially when the contractual chain (i.e., general contractor, subcontractor, material supplier, distributor etc.) gets tangled. One missed payment can create a ripple effect, and soon everyone’s waiting to get paid. Try to keep a pulse on any party that lies between you and payment.

• Use NCS Credit. The laws around construction mechanic’s liens and bond claims can be complex. NCS experts are here to help you understand the steps involved, file your paperwork correctly, and make sure you’re not missing anything. It’s always worth getting expert advice to avoid costly mistakes.

Your Work Is Invaluable – Ensure Your Right to Recovery

The fires that ravaged Los Angeles were a tragedy, and the rebuilding efforts are crucial for getting communities back on their feet. As subcontractors, material suppliers, and contractors, you’re on the front lines of that recovery. But just as you’re working hard to restore what was lost, you also need to protect your right to get paid. California mechanic’s liens and bond claims are powerful tools that help secure your right to payment, even when circumstances are chaotic.

We Are Your Credit Ally

At NCS Credit, we understand the challenges that subcontractors and material suppliers face when it comes to getting paid. Our team of experts can assist you in filing the necessary paperwork on time, ensuring all legal requirements are met and your rights are protected. We’ll help you monitor deadlines, send the required notices, and provide the guidance you need to secure your payment. With our support, you can focus on what you do best — getting the job done.