California lien law timeline
Mechanics liens, stop notices, defects & bonds
CSE Content Area V • Knowledge Statements K46, K52 • Multiple practice practice exam questions test these concepts
Work begins on site
The preliminary notice clock starts running. All subcontractors and material suppliers who are not in direct contract with the owner must serve a preliminary notice to preserve lien rights.
Preliminary notice (20-day notice)
Within 20 days of first furnishing labor/materialsSubcontractors must send notice to: Owner + General Contractor + Lender (all three). Prime contractors in direct contract with the owner are not required to send a preliminary notice but may do so for additional protection.
A late preliminary notice is still valid — but only protects work performed in the 20 days before the notice was sent, plus all work after.
Work completed / project finished
Completion triggers the lien recording deadline. The clock runs differently depending on whether the owner files a Notice of Completion (NOC).
Notice of completion (NOC) — owner files
Owner should file promptly after completionThe NOC is filed with the County Recorder’s office. Filing the NOC is strongly recommended because it shortens the lien period for both contractors and subcontractors.
Record the mechanics lien
With timely NOC: 60 days for prime contractor
With timely NOC: 30 days for subcontractors
The lien is recorded with the County Recorder. Recording the lien preserves the right to collect — but does not by itself result in payment. The claimant must still enforce the lien by filing a lawsuit.
Enforce the lien — file lawsuit
90 days after recording the lienA recorded lien becomes unenforceable if a lawsuit is not filed within 90 days of the recording date. This is an absolute deadline — no extensions.
Owner-occupied single-family residence
A mechanics lien cannot be placed on an owner-occupied single-family dwelling. This is a specific California protection for homeowners. Rental properties CAN be liened.
Design professional lien
Architects and engineers have a design professional lien — a separate remedy from the mechanics lien. This applies to design-only services. A subcontractor cannot use a design professional lien; they must use a mechanics lien (.).
Lien waivers
At final completion, the contractor must provide final lien waivers confirming all subcontractors, vendors, and suppliers have been paid. The architect should verify these are received before certifying final payment .
Stop payment notice
A written notice served on the public entity directing them to withhold funds from the general contractor to cover the unpaid claimant’s demand. Filed by unpaid subcontractors, material/equipment suppliers, and laborers.
Deadline: 30 days after NOC is filedUnlike mechanics liens on private work, stop payment notices on public work have a relatively flexible timeline — they can be filed anytime during the work plus 30 days after the NOC.
| Stop payment notice | Stop work notice | |
|---|---|---|
| Who files? | Unpaid subcontractor/supplier | General contractor |
| Against whom? | Owner or construction lender | Owner |
| Purpose | Freeze funds owed to GC to cover sub’s claim | GC stops work because owner isn’t paying |
| Applies to | Public or private projects | California-specific; private projects |
| Effect | Lender/owner withholds payment to GC | GC ceases site activities |
Payment bond — protects lower-tier claimants
A payment bond protects subcontractors and suppliers if the general contractor fails to pay. On public works projects, payment bonds are required above certain dollar thresholds. On private projects, they are optional but may be required by the owner.
Key distinctions:
• Payment bond = protects subs/suppliers against GC non-payment
• Performance bond = protects owner against GC default on completion
• Bid bond = protects owner if winning bidder declines the contract
• Surety bond = general category encompassing all three
Substantial completion
All clocks start here. The AIA warranty period, patent defect statute, and latent defect statute all commence from the date of substantial completion — not final completion, not certificate of occupancy.
AIA A201 warranty period
1 year from substantial completionThe contractor is obligated to correct defective work discovered within 1 year of substantial completion. This is a contractual warranty under A201 §12.2.2.1 — it does NOT override the statute of limitations.
Patent defects — statute of limitations
4 years from substantial completionPatent defects are visible or reasonably discoverable upon inspection. If the defect should have been seen during a reasonable inspection, it’s patent — even if nobody actually noticed it.
Examples: Improperly secured rooftop mechanical units , visibly cracked finishes, misaligned doors, obvious grading issues.
Latent defects — statute of limitations
10 years from substantial completionLatent defects are hidden or concealed — not visible or discoverable by reasonable inspection. The defect may not appear for years after completion.
Examples: Concealed water intrusion behind cladding , hidden structural connection failures, moisture damage inside wall assemblies, plumbing leaks above ceilings.
| Patent defect | Latent defect | |
|---|---|---|
| Definition | Visible or discoverable by reasonable inspection | Hidden/concealed; not discoverable by reasonable inspection |
| Statute of limitations | 4 years from substantial completion | 10 years from substantial completion |
| AIA warranty | 1 year (separate from statute) | 1 year (separate from statute) |
| Key question | Should someone have seen this during a reasonable inspection? | Was the defect concealed or hidden from view? |
| Exam examples | Unsecured rooftop equipment , misaligned finishes | Water intrusion behind cladding , hidden structural issues |
| Event / deadline | Private work | Public work |
|---|---|---|
| Preliminary notice | 20 days from first furnishing (subs) | 20 days from first furnishing (subs) |
| Remedy for non-payment | Mechanics lien | Stop payment notice + payment bond claim |
| Lien/claim deadline (no NOC) | 90 days from completion | N/A — stop notice anytime + 30d after NOC |
| With NOC — prime contractor | 60 days from NOC | N/A |
| With NOC — subcontractor | 30 days from NOC | 30 days from NOC (stop payment notice) |
| Enforce lien/claim | File lawsuit within 90 days of recording | Bond claim procedures |
| Patent defect claim | 4 years from substantial completion | |
| Latent defect claim | 10 years from substantial completion | |
| AIA warranty | 1 year from substantial completion (contractual, not statutory) | |
| Payment bond | Optional (owner may require) | Required above dollar thresholds |
| Can you lien the property? | Yes (except owner-occupied SFR) | No — public property cannot be liened |
30 days — sub lien recording (with NOC); stop payment notice after NOC
60 days — GC lien recording (with NOC)
90 days — lien recording without NOC; lawsuit filing after recording; reexam wait
1 year — AIA A201 warranty correction period
4 years — patent defect statute of limitations
10 years — latent defect statute of limitations