Insurance & LiensQuestion 577 of 1632

On a California public works project, a second-tier supplier was not paid by the subcontractor. Because no mechanics' lien can attach to public property, the supplier's primary recovery vehicle is generally:

a.A claim against the payment bond the prime contractor gave
b.A mechanics lien recorded directly against the public building
c.A claim against the CSLB contractor's licence bond instead
d.A claim on the project architect's errors and omissions policy

Explanation

§9550(a) requires a direct contractor awarded a public works contract involving an expenditure in excess of $25,000 to give a payment bond before work commences, and §9100(a) names who may claim on it: anyone who provided work authorised by the direct contractor, a subcontractor, the architect, the project manager or another person having charge of part of the contract, plus laborers — which reaches a second-tier supplier. §9100(b) carves out the single party that may not claim, the direct contractor itself. (b) is the reason the bond exists: public property is not subject to a mechanics lien, so there is nothing to record against. (c) borrows the wrong bond — the §7071.6 licence bond answers to the beneficiaries §7071.5 lists, and an unpaid supplier reaches it only through the willful-violation or fraud door. (d) picks a professional liability policy, which covers the architect's own negligence rather than unpaid invoices. The other route §9100(a) opens is a stop payment notice to the public entity.

Law Reference: Civil Code §9550(a); §9100(a)-(b); Bus. & Prof. Code §7071.5

This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →

Practice all 1632 questions free — no signup required.

Own the complete CSLB Law & Business guide — PDF + EPUB, $24.99 →

Related questions on this topic

Last reviewed: · editorial process

PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)
Report