2026 California Construction Law Update
California private construction contracts entered into on or after January 1, 2026 have a new payment “operating system.” Two new statutes—SB 61 and SB 440—reshape how retention is withheld and how change-order/time-extension claims must be processed and paid.
In this practical, contractor-focused update, we’ll break down what the laws require, where the traps are, and what you should update immediately in your prime contracts, subcontracts, project administration, and documentation workflows.
Key laws we’ll cover:
SB 61 (Civil Code § 8811): Caps retention at 5% across tiers for most private projects, limits total retention to 5% of the contract price, and requires retention “flow-down” so sub-tier retention can’t exceed the prime’s retention percentage (with limited exceptions).
SB 440 (Private Works Change Order Fair Payment Act; Civ. Code § 8850 et seq.): Creates a structured claim process (meet-and-confer + nonbinding mediation), imposes 2% monthly interest on late-paid undisputed amounts (and certain disputed amounts later found owed), and provides a defined path to suspend work if payment deadlines aren’t met.
Time permitting, we’ll also flag other 2026 developments (select new cases and statutes) that are moving risk and leverage on private projects.
Date & Time
03/5/2026
Start Time: 12:00 PM PT
End Time: 1:00 PM PT
Location
Webinar
Sponsor
NACM Commercial Services
Instructors:
Missy Griffin & Micah Rabin
Ms. Missy Griffin is an equity partner of Gibbs Giden, where she represents clients in the areas of construction claims and litigation in addition to business and commercial transactions and litigation. Ms. Griffin has worked on complex construction litigation for private and public works, contract analysis, contract drafting, and mechanics lien and stop payment foreclosure actions. Ms. Griffin has experience representing general contractors, subcontractors, material suppliers and public agencies in a wide range of business, commercial and construction negotiations and disputes. Ms. Griffin is also an Adjunct Professor and a member of the Dean’s Council at Pepperdine Caruso School of Law, and an active member of the American Bar Association (ABA) Forum on Construction Law, the largest association of construction lawyers in the world. Ms. Griffin brings to her practice nearly a decade of professional experience in various operations positions in the real estate and property management industries. Prior to becoming an attorney, she worked in operations for a leading multifamily residential company on the West Coast followed by positions in operations and human resources for the largest owner and operator of premium showroom and exhibition space for the home furnishings industry.
Ms. Micah Rabin represents clients in the areas of business, commercial, and construction litigation in addition to business and commercial transactions. Ms. Rabin has worked on complex construction litigation for private and public works projects, and contract drafting and analysis. She actively participates in litigation matters from inception through resolution, including drafting and responding to written discovery, researching and analyzing complex legal issues, and preparing for and participating in mediation and arbitration.
During law school, Ms. Rabin competed as an oralist in the 2025 Willem C. Vis International Commercial Arbitration Moot in Vienna, gaining advocacy experience in international commercial law and arbitration. She also studied abroad at Pepperdine University’s London campus and interned with a large international law firm in London.
Prior to becoming an attorney, Ms. Rabin worked at the Milken Institute, where she conducted research on the impact of international technology regulations on U.S.-based technology companies and co-authored a published paper on global investments. Earlier in her career, she worked on a political campaign and served as a graduate student legislative intern in the leadership office of Congressman James Clyburn.
Course Level
I - Intermediate
Credits
CEU:
0.000
CCE:
0.000
Audience
Admissions
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