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If your construction company is involved in public works and relies on public works contracts, you need to do what’s best for your business and keep yourself updated with the newest public works contract laws.

You need to familiarize yourself with your legal obligations and understand exactly what you are getting yourself into because you could lose a lot of money if you do not do everything according to your contract and the various laws that control your particular work.  Here are some 2017 laws that you need to be aware of so you do not add legal trouble to the list of your other public works’ issues:

Prompt Payment on Change Orders – A new law AB- 626 (Chiu) aims to make sure prompt payment is provided to contractors for change order work.  This bill requires government agencies to respond to a contractors’ claim, to pay out portions of the work not in dispute( that they acknowledge/agree they owe the contractor), and implements a fair process for resolving any disputed portions of payment.  This should help all those contractors getting involved in public work projects get paid promptly.

SB-693 and AB-626 are both very important laws relating to public works that affect your construction company.

Skilled Workforce Requirements – SB 693 provides uniformity to the skilled and trained workforce requirements in several statutes and addresses compliance and enforcement issues. The bill also requires that, if a new project labor agreement (PLA) applies to a project, the skilled workforce requirements must be incorporated into the PLA.   Uniformity is good as it brings clarity and allows contractors to understand what the requirements are and how they can comply with them.

The preceding is a summary of legal subjects provided for informational purposes only.  Most legal issues need complex factual and legal analysis. You are advised not to rely on these blogs and seek legal advice about your specific issues from a licensed attorney in your jurisdiction.  Nothing in these writings is intended to create, or creates, an attorney-client relationship.  For consultation with a licensed attorney you may contact Ghassemian Law Group at 949-436-2785.


This article is informational only and meant to provide guidance. It is not meant to be legal advice and it does not create an attorney-client relationship. For what to do in your specific situation, please consult with a qualified Construction Law attorney.


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Hoffman Legal Corporation

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