California Subcontractor Not Paid? Preliminary Notice, Lien, Funding

The GC got paid — or says it didn’t — and your California subcontract balance is still open. In California, a sub’s main tools are the preliminary notice, the mechanic’s lien under the Civil Code, and, on bonded jobs, the payment bond.

This page walks through California’s subcontractor clocks and how Darkwell funding can help carry a claim of $10,000 or more. For the full state picture, see the California contractor not paid pillar.

California sub owed $10,000 or more? Request a free claim review.

California rules that protect unpaid subs

• Preliminary notice. Before recording a lien claim, giving a stop payment notice, or asserting a claim against a payment bond, a claimant generally must give preliminary notice to the owner, the direct contractor, and the construction lender if any. Laborers are excepted; claimants in direct contract with the owner give notice only to the lender if any (Civ. Code § 8200).
• Record the lien (claimant other than a direct contractor). After the claimant ceases to provide work, and before the earlier of 90 days after completion of the work of improvement or 30 days after the owner records a notice of completion or cessation (Civ. Code § 8414).
• Direct contractor recording note. A direct contractor records after completing the direct contract and before the earlier of 90 days after completion or 60 days after a recorded notice of completion or cessation (Civ. Code § 8412).
• Sue within 90 days. Commence an action to enforce the lien within 90 days after recordation, or the claim of lien expires (Civ. Code § 8460).

Pay-when-paid fights

Many California subcontracts tie payment to the GC getting paid. Your attorney reads the clause and decides whether a lien, stop payment notice, bond, or contract claim fits.

When funding helps

If the GC is well funded and slow-walking, and counsel costs are the bottleneck, funding can help carry attorney and case costs while your attorney runs the case.

How Darkwell helps

Legal costs are often what stops a good claim. Darkwell helps carry them. For a California sub, that can mean funding the lien, stop payment notice, bond, or contract claim against the GC.

• We help carry the cost. Darkwell funding helps pay for the case, so your operating cash stays in your business.
• We bring attorneys we know. Darkwell has a network of attorneys we know. They help keep costs down while still pursuing the claim. The claim moves forward with an attorney from our network, or your current attorney where it fits.
• Your attorney handles the law. We don’t run your case or choose your legal strategy. Your attorney does that.
• You make a clear decision. The goal is to take the stress out of the fight and make the smart financial decision about your claim.

What to send for a claim review

• Contract or subcontract, and change orders
• Invoices, pay applications, and payment history
• Job address and the owner, GC, or customer name
• Photos, daily logs, and delivery tickets
• Any notices, lien filings, or bond information
• Your attorney’s contact, if you have one
• Your preliminary notice and proof of service

How we get paid

Our fee comes out of the recovery, not your pocket. If there’s no recovery, you don’t repay our funding. Your written agreement sets the exact terms.

Where we work and claim size

We fund business claims, and individual and consumer claims in some states, reviewed state by state where the law allows. We confirm your state during review. See where Darkwell funds claims.

In select cases, we may purchase a business claim outright, where state law allows.

We review claims of $10,000 or more, subject to review and approval by our team.

Darkwell does not buy or collect consumer debt in states that require a collection license, including Colorado.

Common questions

Do California subcontractors need a preliminary notice? Generally yes before recording a lien, giving a stop payment notice, or claiming on a payment bond, under Civ. Code § 8200, with listed exceptions.

How long does a California sub have to record a lien? After ceasing work, and before the earlier of 90 days after completion or 30 days after a recorded notice of completion or cessation, under § 8414.

How long to sue on the lien? Generally within 90 days after recordation, under § 8460.

Does Darkwell control my case? No. Your attorney handles the case and the legal strategy. Darkwell provides funding.

Sources

• Cal. Civ. Code § 8200
• Cal. Civ. Code § 8414
• Cal. Civ. Code § 8412
• Cal. Civ. Code § 8460
• California Contractor Not Paid

California sub still unpaid at $10,000 or more? Request a free claim review. Send what you have, and you’ll get a response from our team.

Related reading: California Contractor Not Paid · Subcontractor vs. GC Claim Funding · Los Angeles Contractor Claim Funding · Where We Fund