Public WorksQuestion 592 of 1632

A material supplier on a $400,000 California public works project has not been paid by the subcontractor that ordered the materials. To recover from the payment bond required by Civil Code §9550, the supplier should:

a.File a mechanics lien against the public building
b.Sue the awarding body directly for breach of contract
c.Wait for the awarding body to release retention
d.Make a timely written claim on the prime's payment bond

Explanation

Civil Code §9550 requires the direct contractor on a public works contract over $25,000 to give a payment bond before starting, and it exists for exactly this claimant: a supplier who dealt with a subcontractor and cannot lien public property. The claim must be made and suit filed within the §9558 window, which closes six months after the stop-notice period ends. A lien on the school or city building (a) is void. The supplier has no contract with the awarding body, so a direct breach claim (b) fails for want of privity. And waiting for retention (c) is the trap: retention released under Public Contract Code §7107 goes to the prime contractor, not to a supplier two tiers down, so the wait runs the §9558 clock out on the only remedy that would have worked.

Law Reference: Civil Code §9550; §9558; Public Contract Code §7107

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