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Construction Law Glossary

Mechanic's Lien

A security interest in real property to secure payment for construction work.

Retention

A percentage of payment withheld until project completion. Capped at 5% under SB 61 (2026).

Change Order

A written modification to the construction contract changing scope, price, or timeline.

Substantial Completion

The point at which a project is sufficiently complete for its intended use.

SB 800 / Right to Repair

Pre-litigation procedures for residential construction defect claims.

BPC §7031

Bars unlicensed contractors from recovering payment in California.

Prevailing Wage

Required wage rates for workers on public construction projects.

Surety Bond

A guarantee from a third party ensuring contractor performance or payment.

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