Glossary of Construction-Law Terms — Contractor Defect Law
Mechanic's Lien
A security interest in real property to secure payment for construction work.
Retention
A percentage of payment withheld until project completion. Capped at 5% under SB 61 (2026).
Change Order
A written modification to the construction contract changing scope, price, or timeline.
Substantial Completion
The point at which a project is sufficiently complete for its intended use.
SB 800 / Right to Repair
Pre-litigation procedures for residential construction defect claims.
BPC §7031
Bars unlicensed contractors from recovering payment in California.
Prevailing Wage
Required wage rates for workers on public construction projects.
Surety Bond
A guarantee from a third party ensuring contractor performance or payment.
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