Public WorksQuestion 1582 of 1632

Because public property generally cannot be subjected to a mechanics lien, unpaid subcontractors on a California public works project are protected primarily by:

a.A mechanics lien recorded against the public building
b.A notice of non-responsibility given to the public entity
c.Builder's risk insurance carried by the awarding agency
d.The prime's payment bond and a stop payment notice

Explanation

Public property cannot be sold to satisfy a private claim, so no mechanics lien attaches to it. The substitutes are the direct contractor's payment bond under Civil Code §9550 and the stop payment notice against undisbursed public funds under Civil Code §9352. A notice of non-responsibility is a private-works device by which an owner disclaims work ordered by a tenant; it protects the owner and pays nobody. Builder's risk insures the work against physical loss and answers no invoice.

Law Reference: Civil Code §9550; §9352

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