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ARTICLE · 19 NOVEMBER 2025

California Mandates Important New Rules For Private Construction Projects

Jones Day
Jones Day
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Beginning with contracts executed on or after January 1, 2026, two new California laws take effect: California Civil Code sections 8850 and 8811.

United StatesReal Estate and Construction
Daniel McMillan
Daniel McMillan
Jeffrey Kirzner
Jeffrey Kirzner
Michael S. McCauley
Michael S. McCauley
Carolyn Woodson
Carolyn Woodson
Matthew Silveira
Matthew Silveira
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In Brief

The Situation: Beginning with contracts executed on or after January 1, 2026, two new California laws take effect: California Civil Code sections 8850 and 8811. Section 8850 has particularly significant ramifications for construction contracts on most private construction projects in California.

The Result: Most construction contracts dealing with private works located in California and executed on or after January 1, 2026, will be subject to the new laws. Both laws will invalidate contract terms that contradict the new statutes and impose non-waivable requirements. Owners, contractors, and subcontractors should all be aware of these new requirements for private projects, which come with significant potential consequences for non-compliance.

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