Notice of Completion

[beachboy]

In Notice of Completion, I know that owner files the notice of completion at the office of country recorder where project is located within 15 days of project completion and this reduces the lien period to prime contractor from 90 to 60 days and sub contractor from 90 to 30 days. Okay then here is my question, what if owner is not file the notice of completion, how do prime and sub contractor know when it will pass 90 days period? Since nothing has actually set up for completion day. Does final payment to contractor consider as completion date or substantial completion date?

[clutjen]

It is 90 days after all work is completed, which would be documented by Final Completion. Another case would be after the subcontractor can no longer perform work, i.e. project shutdown, termination of contract. See this link for further explanation:

http://www.california-construction-atto ... iming.html

Chris

[Kirbart]

1. CA License Law says "After work is completed or ceases"; the Owner records NOC, as no work is to be performed after the NOC is filed with county = Final payment.

2. Coach- it also states that the Owner must serve all those who provided 20d notices with copy of the NOC within 10 days.
Does this mean that IF Owner does not do this, the Lien period reverts back to 90d?
thanks

[Kirbart]

Got it now; the NOC is filed after Cert. of Occupancy ONLY if a Cessation of Labor for 30 days has occurred (2 below). Otherwise, its after Final (1).
BTW- Are we agreed that it's filed within 10days and typically by Owner?

CIVIL CODE
SECTION 8180-8190
8180. (a) For the purpose of this title, completion of a work of
improvement occurs upon the occurrence of any of the following
events:
(1) Actual completion of the work of improvement.
(2) Occupation or use by the owner accompanied by cessation of
labor.
(3) Cessation of labor for a continuous period of 60 days.
(4) Recordation of a notice of cessation after cessation of labor
for a continuous period of 30 days.
(b) Notwithstanding subdivision (a), if a work of improvement is
subject to acceptance by

[beachboy]

I do agree with you except one thing.

"8182. (a) An owner may record a notice of completion on or within
15 days after the date of completion of a work of improvement."

I don't know whether the day is important or not, it is not 10 days but 15 days.

[Kirbart]

8182- 15 Days - got it thanks much.
Confused it with the copy of notice back to GC & Claimants.

[yoav_weiss]

So basically...

Owner occupies building & there is no work for 30 days...

WITHIN 15 days of the 30th day, Owner files with county recorder, and...
WITHIN 10 days, provides proof of filing to GC...

THEN, lien period reduced from...
90 -> 60 GC
90 -> 30 SC

Is that right?

Is the lien period still reduced even if Owner fails to provide proof of filing to GC within 10 days?

[hnQ_9999]

Why Owner has to show proof of filing NOC to GC ?
If GC or Sub wanna file a lien, they wd go to the county.
That is where the county clerk wd say "sorry Mr GC, etc etc" whether the GC can file a lien or not.

[yoav_weiss]

I saw the clause in California Law somewhere, that the Owner should provide notice to the GC within 10 days that he successfully filed NOC within the 15 days of final completion. I don't think the test will ask anything related to the 10 days..I think the important takeaway here is

1) 90->60 days for GC
2) 90->30 days for SC
3) Owner must file within 15 days

[jestefan]

1. CA License Law says "After work is completed or ceases"; the Owner records NOC, as no work is to be performed after the NOC is filed with county = Final payment.

2. Coach- it also states that the Owner must serve all those who provided 20d notices with copy of the NOC within 10 days.
Does this mean that IF Owner does not do this, the Lien period reverts back to 90d?
thanks

YES. If Owner doesn't serve a notice to the GC within 10 days of filing the NOC, the lien period reverts back to 90 days.