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SB-440 • 2026

Private Works Change Order Fair Payment Act.

Private Works Change Order Fair Payment Act.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Ochoa Bogh
Last action
2025-10-10
Official status
Chaptered by Secretary of State. Chapter 583, Statutes of 2025.
Effective date
Not listed

Plain English Breakdown

The term 'retention withholding' was included but does not appear to be relevant based on the provided official bill text and summaries.

Private Works Change Order Fair Payment Act

This act sets up rules to help contractors and subcontractors get fair payments when there are changes in private construction projects.

What This Bill Does

  • Establishes a claim resolution process for contracts entered into on or after January 1, 2026, until January 1, 2030.
  • Defines a 'claim' as a separate demand sent by registered mail or certified mail with return receipt requested, including requests for time extensions and relief from damages or penalties due to delays.

Who It Names or Affects

  • Contractors and subcontractors working on private construction projects
  • Owners who hire contractors for these projects

Terms To Know

Claim
A separate demand by a contractor or subcontractor sent by registered mail or certified mail with return receipt requested, including requests for time extensions and relief from damages or penalties due to delays.

Limits and Unknowns

  • The act only applies to contracts made after January 1, 2026.
  • It does not cover public works projects or contracts before January 1, 2026.

Bill History

  1. 2025-10-10 California Legislative Information

    Chaptered by Secretary of State. Chapter 583, Statutes of 2025.

  2. 2025-10-10 California Legislative Information

    Approved by the Governor.

  3. 2025-09-05 California Legislative Information

    Enrolled and presented to the Governor at 2 p.m.

  4. 2025-08-29 California Legislative Information

    Assembly amendments concurred in. (Ayes 37. Noes 0. Page 2287.) Ordered to engrossing and enrolling.

  5. 2025-08-27 California Legislative Information

    Ordered to special consent calendar.

  6. 2025-08-21 California Legislative Information

    In Senate. Concurrence in Assembly amendments pending.

  7. 2025-08-21 California Legislative Information

    Read third time. Passed. (Ayes 77. Noes 0. Page 2705.) Ordered to the Senate.

  8. 2025-07-17 California Legislative Information

    Read second time. Ordered to consent calendar.

  9. 2025-07-16 California Legislative Information

    From committee: Do pass. Ordered to consent calendar. (Ayes 12. Noes 0.) (July 15).

  10. 2025-06-23 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

  11. 2025-06-10 California Legislative Information

    June 17 set for first hearing canceled at the request of author.

  12. 2025-05-29 California Legislative Information

    Referred to Com. on JUD.

  13. 2025-05-15 California Legislative Information

    In Assembly. Read first time. Held at Desk.

  14. 2025-05-15 California Legislative Information

    Read third time. Passed. (Ayes 34. Noes 0. Page 1089.) Ordered to the Assembly.

  15. 2025-05-08 California Legislative Information

    Read second time. Ordered to consent calendar.

  16. 2025-05-07 California Legislative Information

    From committee: Do pass. Ordered to consent calendar. (Ayes 12. Noes 0. Page 1026.) (May 6).

  17. 2025-04-28 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

  18. 2025-04-11 California Legislative Information

    Set for hearing May 6.

  19. 2025-02-26 California Legislative Information

    Referred to Com. on JUD.

  20. 2025-02-19 California Legislative Information

    From printer. May be acted upon on or after March 21.

  21. 2025-02-18 California Legislative Information

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 440, Ochoa Bogh.
Private Works Change Order Fair Payment Act.
Existing law contains various provisions relating to contracts for the performance of private works of improvement, including provisions applicable to a retention withholding by an owner from a direct contractor or by a direct contractor from a subcontractor.
This bill would establish, until January 1, 2030, for contracts entered into on or after January 1, 2026, a claim resolution process, as specified, applicable to any claim by a contractor or subcontractor, as described, in connection to a work of improvement or site improvement, except as specified. The bill would define a claim for these purposes as a separate demand by the contractor or subcontractor, as described, sent by registered mail or certified mail with return receipt requested, for,
among other things, a time extension for relief from damages or penalties for delay assessed by an owner under contract for a work of improvement or site of improvement. The bill would make related findings and declarations.

Current Bill Text

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