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Completion Definition

CaliforniaNotice of CompletionRetainage

Hello, I have a question on "completion". Is completion the soonest of the four provided definitions? Projects are considered completed when one of the following occurs; (1) occupation or use of the improvement, (2) acceptance by the public entity; (3) work stoppage for 100 straight days; or (4) when a notice of cessation or completion of labor has been recorded after 30 continuous days of no work. I ask in the case of a public agency withholding until (2)acceptance by the public entity ( recording "Notice of Completion" for many public agencies). In many cases recording a NOC happens several months after actual field completion/cessation of work, so would the (4) definition then take precedence? What is a public agency takes a year to send a job to NOC/acceptance, it would seem this wouldn't then follow the spirit of the timely retention release laws. Thanks for your input!

1 reply

Apr 24, 2023

The answer could depend upon whether you are talking about a public or private project and whether the State Contract Act applies.

If you are inquiring only about release of retention rather than the deadline to record a lien or serve a stop payment notice, the answer may be depend upon the terms of your contract.

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