California SB 33: the public works claim process in Public Contract Code 9204 no longer ends in 2027

What changed: the January 1, 2027 end date is gone

SB 33 was chaptered as chapter 99 of the 2026 statutes:

SB 33 as chaptered, heading

Senate Bill No. 33 CHAPTER 99

Two lines, run together here.

SB 33 as chaptered, title

An act to amend Section 9204 of the Public Contract Code, relating to public contracts.

Before it, the last subdivision of section 9204 put an end date on the whole section. The Legislature's code page, read for this page on September 26, 2026, still prints that subdivision, with a history note that ends at the 2019 amendment:

Public Contract Code 9204(i), as the code page still prints it

(i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2027, deletes or extends that date.

The Legislature's code page, fetched September 26, 2026, still prints this subdivision. SB 33 prints section 9204 without it.

Public Contract Code 9204, history note under the section

(Amended by Stats. 2019, Ch. 489, Sec. 1. (AB 456) Effective January 1, 2020. Repealed as of January 1, 2027, by its own provisions.)

The code page prints this note under subdivision (i).

The Legislative Counsel's digest of SB 33 describes the law as it stood:

SB 33, Legislative Counsel's digest, second sentence of the first paragraph

Existing law establishes, until January 1, 2027, for contracts entered into on or after January 1, 2017, a claim resolution process applicable to any claim by a contractor in connection with a public works project against a public entity, as specified.

The paragraph goes on to the definition of public entity and to the public entity's duties in the claim process; those sentences are left out here.

and says what the bill does:

SB 33, Legislative Counsel's digest, first sentence of the second paragraph

This bill would repeal the above-described January 1, 2027, repeal date, thereby extending the operation of these provisions indefinitely.

The rest of the paragraph, on state mandated costs, is left out here.

Section 1 of the act then sets out the whole section:

SB 33 as chaptered, Section 1, opening words

SECTION 1. Section 9204 of the Public Contract Code is amended to read:

SB 33 prints section 9204 with subdivisions (a) to (h) and no subdivision (i), as the section reads after the change, with no marks for added or deleted words. Compared line by line, its subdivisions (a) to (h) are in the same words as subdivisions (a) to (h) on the code page. So the change is the removal of subdivision (i), and the claim process quoted on this page reads as it did before.

What the text leaves open: the code page does not yet show the section as SB 33 left it, so a reader of that page still sees the old repeal date. This page quotes the section from the code page and the change from the chaptered bill.

Who it covers: contractors and their subs on public works projects

Subdivision (b) sets the reach of the section:

Public Contract Code 9204(b)

(b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project.

A claim is a demand of a particular kind, sent a particular way:

Public Contract Code 9204(c), opening words, and (c)(1)

(c) For purposes of this section: (1) “Claim” means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following: (A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project. (B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. (C) Payment of an amount that is disputed by the public entity.

The opening words of subdivision (c), paragraph (1) and its items (A) to (C) are printed on five lines, run together here.

The contractor is the one with a direct contract with a public entity:

Public Contract Code 9204(c)(2)

(2) “Contractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project.

Public entities are listed widely, from state agencies to cities, counties and districts:

Public Contract Code 9204(c)(3)(A)

(3) (A) “Public entity” means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city, including a charter city, county, including a charter county, city and county, including a charter city and county, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency.

Some state bodies are left out:

Public Contract Code 9204(c)(3)(B)

(B) “Public entity” shall not include the following: (i) The Department of Water Resources as to any project under the jurisdiction of that department. (ii) The Department of Transportation as to any project under the jurisdiction of that department. (iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department. (iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code. (v) The Military Department as to any project under the jurisdiction of that department. (vi) The Department of General Services as to all other projects. (vii) The High-Speed Rail Authority.

Subparagraph (B) and its items (i) to (vii) are printed on eight lines, run together here.

SB 33 adds a finding of its own about cities:

SB 33 as chaptered, Sec. 2

SEC. 2. The Legislature finds and declares that Section 1 of this act amending Section 9204 of the Public Contract Code address a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 of this act applies to all cities, including charter cities.

The word address is as the bill prints it.

The work has to be a public works project:

Public Contract Code 9204(c)(4)

(4) “Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind.

A subcontractor is defined too:

Public Contract Code 9204(c)(5)

(5) “Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor.

Where a subcontractor lacks standing to claim against the public entity because it has no contract with it, the contractor may present the claim for it:

Public Contract Code 9204(d)(5)

(5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on their own behalf or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontractor in writing as to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so.

Public works only. California's claim process for change orders and disputed payments on private jobs is a different law, SB 440, in the Civil Code rather than the Public Contract Code. It has its own page, linked at the foot of this one.

What the text leaves open: five of the exclusions in subparagraph (B) are by department and by project under that department's jurisdiction, and the section does not list those projects; this page does not either. Where a subcontractor asks and the contractor does not present its claim, the section requires the contractor to give a statement of its reasons, and does not say what the subcontractor can do next.

From when: approved July 16, 2026, and the act names no date

The chaptered bill shows when it was approved and filed:

SB 33 as chaptered, approval and filing line

Approved by Governor July 16, 2026. Filed with Secretary of State July 16, 2026.

The page prints the line inside square brackets.

The old subdivision (i), quoted above, repealed the section on January 1, 2027 unless a later statute, enacted before that date, deleted or extended it. SB 33 was approved and filed on July 16, 2026. The act has three sections and names no date on which it takes effect, and this page did not read the California rule that sets one for a statute that does not name it.

Which contracts the section reaches is unchanged. Subdivision (g) says:

Public Contract Code 9204(g)

(g) This section applies to contracts entered into on or after January 1, 2017.

What the text leaves open: the act names no date for itself, and this page gives none. Subdivision (g) still reaches only contracts entered into on or after January 1, 2017, so a contract from before then is outside the section, and SB 33 does not change that.

What did not change: subdivisions (a) to (h)

SB 33 does not change the words of subdivisions (a) to (h). The findings in subdivision (a) read as before:

Public Contract Code 9204(a)

(a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner.

and so does subdivision (h):

Public Contract Code 9204(h)

(h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations.

Section 9204 is the claim process for public works. SB 33 does not touch the Civil Code, where California's private works rules sit: the SB 440 claim process for private jobs, and the lien waiver forms linked at the foot of this page, which are under Civil Code sections 8132 to 8138.

What the text leaves open: subdivision (b) says the section applies notwithstanding other law, and names three other parts of the Public Contract Code. This page did not read those, or sections 9201 to 9203 of the same chapter, and says nothing about how they work alongside section 9204.

The claim process in section 9204, word for word

The public entity's review and written statement:

Public Contract Code 9204(d)(1)(A)

(d) (1) (A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision.

Public Contract Code 9204(d)(1)(B)

(B) The claimant shall furnish reasonable documentation to support the claim.

Public Contract Code 9204(d)(1)(C)

(C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion.

Public Contract Code 9204(d)(1)(D)

(D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.

If the claimant disputes the answer, or gets none, the meet and confer and then mediation:

Public Contract Code 9204(d)(2)(A)

(2) (A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute.

Public Contract Code 9204(d)(2)(B)

(B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section.

Public Contract Code 9204(d)(2)(C)

(C) For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.

Public Contract Code 9204(d)(2)(D)

(D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.

Public Contract Code 9204(d)(2)(E)

(E) This section does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties’ dispute.

Failure to respond:

Public Contract Code 9204(d)(3)

(3) Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant.

Interest:

Public Contract Code 9204(d)(4)

(4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum.

The section has to be in the plans or specifications, and its rights cannot be waived, with two exceptions:

Public Contract Code 9204(e)

(e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section.

Public Contract Code 9204(f)

(f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section.

This page quotes every subdivision of section 9204 as the Legislature's code page prints it, subdivisions (a) to (i) and the history note under them. Of SB 33 it quotes the heading, the title, the approval line, one sentence from each of the first two paragraphs of the digest, the opening words of Section 1 and all of Sec. 2. It leaves out the rest of the digest and Sec. 3, on costs mandated by the state. Each quote is checked against a saved copy of the official text when this page is built. Read the section and the bill there:

Read the law: Public Contract Code section 9204 and SB 33 as chapteredleginfo.legislature.ca.gov

What to do differently

Only what the text supports:

• Check the owner and the job. Section 9204 reaches a claim by a contractor with “a direct contract with a public entity for a public works project”. On a private job it does not apply, and SB 440 is the private works law, with its own limits.
• Send the claim by registered mail or certified mail with return receipt requested. The definition of a claim says so.
• Include your documentation. The claimant “shall furnish reasonable documentation to support the claim”.
• Count the 45 days. The public entity has 45 days to give you a written statement of what it disputes and what it does not, longer only if you both agree, or up to three days after its governing body's next noticed meeting if it needs that body's approval and the body does not meet in time.
• If there is no answer in time, the claim is “deemed rejected in its entirety”, and you can demand in writing an informal conference to meet and confer. Send the demand by registered or certified mail, return receipt requested; the public entity then schedules the conference within 30 days.
• Track the undisputed part. It has to be processed and paid within 60 days after the public entity issues its written statement, and amounts not paid in time bear interest at 7 percent per annum.
• If you are a subcontractor with no contract with the public entity, ask the contractor in writing to present your claim, with reasonable documentation. The contractor has 45 days to tell you in writing whether it did, and why not if it did not.
• Read the contract's claim procedures against the section. A public entity may add its own, but they cannot “conflict with or otherwise impair the timeframes and procedures set forth in this section”, and a waiver of the section's rights is void apart from the two exceptions in subdivision (f).

Questions people ask

Does California SB 33 change the claim process on public works jobs?

It does not change its words. It prints section 9204 of the Public Contract Code without subdivision (i), which had repealed the section on January 1, 2027, and the digest says this extends “the operation of these provisions indefinitely”. Subdivisions (a) to (h) read as before.

Does section 9204 apply to private jobs?

No. Subdivision (b) applies it to “any claim by a contractor in connection with a public works project”, and a contractor is one who “has entered into a direct contract with a public entity for a public works project”. California's claim process for private jobs is SB 440, in the Civil Code.

How long does a public entity have to answer a claim?

Up to 45 days. It must review the claim and, “within a period not to exceed 45 days”, give the claimant a written statement of what portion is disputed and what portion is undisputed. The parties can extend that by mutual agreement, and a public entity that needs its governing body's approval, where that body does not meet within the 45 days, has up to three days after its next duly publicly noticed meeting.

What happens if the public entity does not answer?

The claim is “deemed rejected in its entirety”, and that “shall not constitute an adverse finding with regard to the merits of the claim”. The claimant may then demand in writing an informal conference to meet and confer, which the public entity has to schedule within 30 days.

What interest applies to late payment?

Paragraph (4) of subdivision (d) says “Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum.”

Can a subcontractor use it?

Through the contractor. Where a subcontractor lacks standing to claim against the public entity because privity of contract does not exist, it may ask the contractor in writing to present the claim, and the contractor has 45 days to tell it in writing whether it did, and if not, why not.

California SB 440: the claim process for change orders and disputed payments on private jobs, in the Civil Code rather than the Public Contract Code · California lien waiver forms under Civil Code sections 8132 to 8138, a different code from the public works claim rules in Public Contract Code section 9204

Other state changes to how contractors get paid are on the construction law changes page.

This page quotes California Public Contract Code section 9204, as amended by Senate Bill 33 (Statutes of 2026, chapter 99) and explains what it says. It is not legal advice, and a statute can be amended. Read the linked section before you rely on it.