# California — State public works payment and performance bond thresholds (Little Miller Acts)

For California, payment bond threshold is Contracts less than $25,000 are excluded from bond requirements; bond amount is A sum equal to the amount of the contract on all public works; claim deadline is must be commenced before the expiration of six months after the period in which stop payment notices may be filed; preliminary notice required is A claimant must give the preliminary notice as required for stop payment notices for public works; statutory citation is California Civil Code, Division 4, Part 6, Title 2, Chapter 6, §§8600 to 8614; Title 3, Chapter 3, §§9300 to 9306; Chapter 5, §§9550 to 9566, verified against its source on 2026-08-17.

- **State:** California _(our reading, not quoted from the source)_
- **Payment bond threshold:** Contracts less than $25,000 are excluded from bond requirements _(verified: appears in the quote below)_
- **Bond amount:** A sum equal to the amount of the contract on all public works _(verified: appears in the quote below)_
- **Claim deadline:** must be commenced before the expiration of six months after the period in which stop payment notices may be filed _(verified: appears in the quote below)_
- **Preliminary notice required:** A claimant must give the preliminary notice as required for stop payment notices for public works _(verified: appears in the quote below)_
- **Statutory citation:** California Civil Code, Division 4, Part 6, Title 2, Chapter 6, §§8600 to 8614; Title 3, Chapter 3, §§9300 to 9306; Chapter 5, §§9550 to 9566 _(verified: appears in the quote below)_

## What the source says

> CALIFORNIA PAYMENT BONDS Public Private Partnerships (P3) Projects Effective January 1, 2014, any local government who enters into an agreement with private entities for the study, planning, design, financing, construction, maintenance, rebuilding, improvement, repair, or operation by private entities of specific types of fee-producing infrastructure must include provisions to ensure the issuance of performance and payment bonds. Public Works Amount of Bond: A sum equal to the amount of the contract on all public works, and executed by an admitted surety insurer. (Civil Code, §9354). Contracts Excluded: Contracts less than $25,000 are excluded from bond requirements, as are contracts with any state entity defined in California Public Contract Code. (Civil Code, §9550). Labor and Material Covered: Any materials, provisions, provender or other supplies, power or teams, furnished to, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld and paid over to the Employment Development Board from the wages of employees of the contractor and his subcontractors. Notice Required: A claimant must give the preliminary notice as required for stop payment notices for public works. (Civil Code, §§9530, 9560). Suit against the surety or sureties on the payment bond may be brought by any claimant, or his assigns, at any time, after the claimant has furnished the last of the labor or materials, or both, but must be commenced before the expiration of six months after the period in which stop payment notices may be filed. Said preliminary notice must be served by registered or certified mail, by personal delivery, express mail, overnight delivery by an express service carrier, or in the manner for serving summons and complaint. In the event, claimant fails to serve preliminary notice as required, claimant may serve written notice to the surety and principal on the bond within 15 days of Notice of Completion or within 75 days of completion if no Notice of Completion. The notice to surety will not be effective to cause payment under the payment bond if the direct contractor has paid all progress payments to subcontractor to whom the claimant provided labor and materials; except those disputed in good faith. (Civil Code, §9560). Service shall be in the same manner as required for service of stop payment notice. Time for Suit: Claimant must file suit not later than six months after the period in which stop notice payments must be served. Private Works There is no requirement that payment be issued for projects on private works except for security for large projects. (Civil Code, §§8700-8730). By causing direct contract, and payment bond in sum not less than 50 percent of the contract price to be recorded, the owner can limit his liability for lien claims to the amount due from the owner to the contractor. Notice Required: A claimant must give the preliminary notice as required for mechanics liens and stop payment notices. (Civil Code, §8612). If preliminary notice was not given as required, claimant may serve written notice to the surety and principal on the bond within 15 days after recordation of a notice of completion or, if no notice of completion, 75 days after completion of the work of improvement. The notice to surety will not be effective to cause payment under the payment bond if the direct contractor has paid all progress payments to subcontractor to whom the claimant provided labor and materials; except those disputed in good faith. (Civil Code, §8612). Service shall be in the same manner as required for service of stop payment notice. (Civil Code, §8614). Time for Suit: If payment bond is recorded before completion of work of improvement, an action to enforce the liability on the bond may not be commenced later than six months after completion of work of improvement. If payment bond is not recorded before completion of the work or improvement, an action to enforce the liability on the bond will be determined as stated in the bond, except under no circumstances shall it limit the time to a shorter period than six months from the completion of the work of improvement. If the bond does not state the time for bringing suit, the time period is four years. Statutory Citation: California Civil Code, Division 4, Part 6, Title 2, Chapter 6, §§8600 to 8614; Title 3, Chapter 3, §§9300 to 9306; Chapter 5, §§9550 to 9566.

## Source

- https://fullertonlaw.com/50-state-summary-payment-bond-law

Last verified: 2026-08-17. Review by: 2027-08-17.
Part of [State public works payment and performance bond thresholds (Little Miller Acts)](https://referencesource.org/state-public-works-bond-thresholds/).