CA AB626

Establishes a claim resolution process for contractors on public works projects for contracts entered into on or after January 1, 2017, requiring public entities to review claims and issue written statements within 45 days identifying disputed and undisputed portions.

Requires payment of undisputed claim portions within 60 days and authorizes a 45-day extension by mutual agreement; claims are deemed rejected entirely if the public entity fails to issue a written statement within the required timeframe.

Mandates a meet and confer conference within 30 days if a claimant disputes the entity's response, followed by nonbinding mediation for any remaining disputed portions, with parties sharing mediation costs equally.

Allows unpaid claim amounts to accrue interest at 7 percent per annum and permits contractors to present claims on behalf of subcontractors lacking direct privity with the public entity.

Applies to contracts entered into on or after January 1, 2017, and automatically repeals on January 1, 2020, unless extended by later legislation; excludes certain state departments including Transportation, Water Resources, Parks and Recreation, and the High-Speed Rail Authority.