Prompt Payment

Overview

SB 1286 (Mountjoy), signed by Governor Wilson on August 10, 1995, was jointly sponsored by the American Institute of Architects, California Council (AIACC) and Consulting Engineers and Land Surveyors of California (CELSOC) to enforce prompt payment for works of improvement. The legislation was a response to the growing trend by public owners to delay, without cause, payments to design professionals.

The law applies to written contracts for private works of improvement entered into on or after January 1, 1996, and is divided into three areas: private works of improvement, public works of improvement, and public works of improvement which include the use of a subcontractor. The three areas are broken down as follows.  (you must be a member to continue reading click here to join)