CA SB440

Establishes a mandatory claim resolution process for contractors and subcontractors on private construction projects for contracts entered into on or after January 1, 2026, with the provisions set to expire January 1, 2030

Requires owners to review claims and provide written responses identifying disputed and undisputed portions within 30 days, with undisputed amounts to be paid within 60 days

Creates a tiered dispute resolution process: informal meet-and-confer conference within 30 days of demand, followed by nonbinding mediation with costs split equally if disputes remain

Imposes 2% monthly interest on undisputed amounts not paid timely and on disputed amounts later found to be owed, calculated from when payment would have been due

Grants contractors and subcontractors the right to suspend work without penalty after providing proper notice when payments are overdue, and prohibits waiver of these rights as contrary to public policy

Excludes government agencies, public entities, and residential projects that are not mixed-use and do not exceed four stories