Potential Significant Issues Exist for Those Who Do Business with Unlicensed Contractors
September, 2008
Governor Schwarzenegger Announces $727 Million for Schools and Career Technical Education
Furthering Governor Arnold Schwarzenegger’s commitment to improving school facilities and stimulating the economy with infrastructure projects, the California State Allocation Board (SAB) announced today it has directed $727 million in Proposition 1D funds and other bond money to build or modernize 331 schools throughout the state. Included in the allocation are more than $201 million in funds for career technical education (CTE) programs.
Mechanic’s Lien and the California Constitution
by Sam K. Abdulaziz, Abdulaziz, Grossbart & Rudman
The case of Clarke v. Safeco finally confirmed that mechanic’s liens are protected by the California constitution. The case started out in a dispute over work done at an office of MGM. Subcontractors were not paid. The reason for failing to pay subcontractors was alleged to be that the prime contractors above the subs were not paid. Therefore, the “Pay-If-Paid” clause protected the upper tier contractors.