Contractors working on public works projects are likely familiar with the statutory claims resolution process under Public Contract Code section 9204. Section 9204, which went into effect in 2017, and which has been amended a couple of times since, provides a claims resolution process for public works projects with the goal of resolving claims before litigation.

Section 9204, which currently expires on January 1, 2027 (it has been extended once so far), provides for a three-step process: (1) submission of a claim by the prime contractor and response by the public entity; (2) if the claim is rejected in whole or in part by the public entity, a meet and confer conference between the prime contractor and public entity; and (3) if the claim is not resolved at the meet and confer conference, mediation (or other non-binding dispute resolution process) between the prime contractor and public entity.

A similar statutory claims resolution process has now been enacted that applies to most private works projects. The bill, Senate Bill 440, goes into effect on January 1, 2026, and is codified at new Civil Code section 8850.