A Sub’s Lien Rights Primer - Getting Paid in California

You did the work. You held up your end of the deal. And then the payment stopped.

Whether it is a general contractor running short on cash, an owner in dispute with the GC, or a project that has simply gone sideways, the result is the same: you are left waiting on money you already earned.

California and federal law give subcontractors powerful tools for exactly this situation: mechanic’s liens, stop payment notices, and bond claims. But every one of them comes with strict deadlines and specific requirements. Miss a step, and you lose the right. No exceptions.

This primer breaks down how to use each tool, including on federal jobs under the Miller Act.

Set Up Your Job Info Sheet Before Work Starts

Before you lift a finger on any project, get the information you need to protect yourself. The best time to ask the GC for bond details, lender information, and owner contacts is at the start of the job, when it is routine. Ask after a dispute has erupted, the GC will know exactly why you are asking, and may not be eager to help.

Make it a standard practice to require your GC to complete a Job Info Sheet at the outset of every project. At a minimum, it should capture:

•       Owner’s name and address

•       Construction lender’s name and address (if any)

•       Payment bond information: surety company name, bond number, and bond amount (if any)

•       General contractor’s name, address, and license number

•       Project address and legal description

On private projects, there is one more question worth asking: is the party contracting for the work the property owner, or a tenant?

It’s always best to serve your 20-Day Preliminary Notice described below on both the tenant (as the contracting “owner”) and the actual property owner.

The 20-Day Preliminary Notice: Start Here, Every Time

Before anything else, understand one rule that applies almost universally on California projects: serve a 20-Day Preliminary Notice on the owner, general contractor, and lender (if any) within 20 days of first furnishing labor or materials.

Timing matters enormously. Serve it on time, and your lien and stop payment notice rights cover everything you furnished from day one. Serve it late, and your rights are cut back to only the labor and materials furnished in the 20 days prior to service. Everything before that window is not protected if you don’t get paid.

This notice is not a threat or a demand. It simply puts the right parties on notice that you are on the job and expect to be paid. Make it a reflex on every project, every time.

Mechanic’s Liens: Private Projects Only

A mechanic’s lien is your most powerful tool on private projects: restaurants, office buildouts, retail stores, apartment buildings, and custom homes. It attaches directly to the property, which means the owner cannot sell or refinance without dealing with your claim.

How it works:

Your deadline runs from “completion” of the project. Completion most commonly occurs when the owner records a Notice of Completion or when the work is actually finished. One important nuance: if all work has stopped for a continuous 60 days, California law deems that a “completion” and the owner may record a Notice of Cessation to trigger the same shortened deadlines as a Notice of Completion. A prolonged job-site silence can start the clock even when the project is not formally wrapped up. Watch for it.

Once completion or cessation has occurred you have:

•       30 days to record your lien if the owner recorded a Notice of Completion or Notice of Cessation, or 90 days to record your lien if no such notice was recorded.

•       90 days after recording to file a lawsuit to enforce the lien, or it expires.

Mechanic’s liens are not available on public works projects. The government does not allow a lien placed on a public school or a city hall. That is where stop payment notices and bonds come in.

Stop Payment Notices: California Public and Private Projects

A stop payment notice is a legal freeze on construction funds. Serve one, and you are telling the owner or lender to withhold enough money from the GC to cover your unpaid balance. It works on both private and public projects, making it the most versatile tool in your kit.

The same completion and cessation rules that govern mechanic’s lien deadlines apply here as well. Once completion or cessation occurs:

•       Serve the notice within 30 days if a Notice of Completion or Cessation was recorded, or within 90 days if not.

•       File suit within 90 days of the last day you could have served the notice.

Stop Payment Notices can be done even when a mechanic's lien or bond are available. But a very important aspect is that you can send a Stop Payment Notice at any time during the course of construction for amounts you are currently owed, whether under the original subcontract or for change orders.

Payment Bonds: When There’s a Surety Involved

Many projects, and virtually all public projects, require the GC to obtain a payment bond from a surety company. That bond exists specifically to guarantee that subs and suppliers get paid. If the GC does not pay you, you make a claim against the bond. You can obtain a copy of a public works bond by doing a public records request to the public agency that owns the project.

•       California public projects: File suit within 6 months of the last day you could have served a Stop Payment Notice.

•       California private projects: The bond is a contract, and the suit deadline is set by its own terms. You may not know when that is if you can’t get a copy of the bond somehow, so act fast if you are not getting paid and the project is over.

Federal Projects: The Miller Act

Working on a Navy base, Camp Pendleton, a federal courthouse, or any other U.S. government project? State lien law does not apply. The Miller Act governs your rights on the payment bond that prime contractors are required to obtain on federal projects over $150,000.

A Key Difference: When the Clock Starts

On California projects, deadlines are triggered by the date the project is completed or ceases. Under the Miller Act, the clock runs from the date the individual claimant last furnished labor or materials, not from project completion. That distinction can matter significantly on long projects where a sub finishes its scope months before the job wraps up.

The 90-Day Notice Requirement and Its Exception

Under the Miller Act, any claimant who does not have a direct contractual relationship with the prime contractor must serve written notice on the prime contractor within 90 days of the claimant’s last day furnishing labor or materials. This notice is a hard prerequisite to filing suit on the bond.

However, if you do have a direct contract with the prime, you are not required to give the 90-day notice at all. As a first-tier subcontractor, you can proceed directly to suit without it, as long as you file within the one-year deadline.

Regardless of notice requirements, all Miller Act claimants must file suit within 1 year of their own last day furnishing labor or materials. A California 20-Day Preliminary Notice is not required on federal work, but putting your prime on written notice early is always a smart move.

The Bottom Line

These deadlines are hard cutoffs and courts rarely grant exceptions. Complete your Job Info Sheet before work starts. Treat the 20-Day Prelim as a reflex on every job. Track your last day on the job, and calendar your lien and notice deadlines the moment a payment dispute surfaces. When in doubt, get to a construction attorney early. It is far cheaper than losing your claim over a missed deadline.