"The secret of getting things done is to act!" - Dante
ACTION ALERT!!! - Act Now to Support Late-Session Push for Private Works Change Order Reform
Significant amendments have been made to SB 440 (Ochoa-Bogh) that reshape the bill to provide clarity and meaningful reform to how change orders are processed on private works of improvement. As amended, SB 440 mirrors the successful framework established by AB 626 (Chiu, 2016), which implemented timelines and procedures for handling change orders on public works projects. The revised SB 440 now extends those same protections to private projects, where unresolved or unpaid change orders continue to result in costly delays, litigation, and financial strain for contractors.
Key reforms in SB 440 include:
- Allowing contractors to initiate the payment process for work performed outside the original contract scope.
- Requiring private project owners to review claims for extra work within a timely window.
- Upholds the owner's right to dispute or reject all or part of a change order claim, while requiring prompt payment of any undisputed amounts in line with existing California prompt payment laws.
- Requiring nonbinding mediation before litigation for any disputed or denied claims, or portion of claims, encouraging early and cost-effective resolution.
By adopting these reforms, SB 440 will reduce litigation, minimize project delays, and promote greater financial fairness and predictability across California’s private construction sector.
Take action TODAY and voice your support for SB 440
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Urge other California union signatory contractors to make their voices heard! Email peers and ask them to take action today by visiting this website.
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