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Construction

Jun. 24, 2026

California Civil Code section 8850: Redefining construction dispute resolution

The Private Works Change Order Fair Payment Act may fundamentally reshape construction dispute resolution in California, requiring parties to navigate a series of mandatory pre-dispute procedures before claims can proceed to arbitration or litigation.

Theresa C. Becerra

Partner
Spencer Fane

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Zackary G. Smith

Associate
Spencer Fane

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California Civil Code section 8850: Redefining construction dispute resolution
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The Private Works Change Order Fair Payment Act (the "Act"), codified at Civil Code section 8850 and effective for most private construction contracts entered into on or after Jan. 1, 2026, may substantially alter how construction disputes are prosecuted and resolved in California. By imposing mandatory claim-presentation requirements, accelerated response deadlines, meet-and-confer obligations, mediation procedures and substantial financial penalties, the statute creates a n...

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