Assembly Bill 626 was signed into law on September 29, 2016 and affects contracts for public works projects entered into on or after January 1, 2017. The Bill creates new requirements for administering the claims process for public works projects in California. Public agencies can now be forced to mediate unresolved claims during construction, and general contractors can file pass through claims against a public agency on behalf of subcontractors. AB 626 also establishes a strict timeline associated with the claim resolution process. The Bill will have a significant impact on how public agencies resolve claims arising from construction projects.
The presenters discuss which public agencies are required to comply with AB 626, the timelines associated with the new claim resolution process, and what language must be included in agencies' project plans and specifications. An overview of AB 626 is available by clicking here to read a Meyers Nave Client Alert titled "New Law Requires New Claim Resolution Process for Public Works."