SECTIONS 3123-3124 - California Statutes

CIVIL CODE

SECTION 3123-3124

3123. (a) The liens provided for in this chapter shall be direct
liens, and shall be for the reasonable value of the labor, services,
equipment, or materials furnished or for the price agreed upon by the
claimant and the person with whom he or she contracted, whichever is
less. The lien shall not be limited in amount by the price stated in
the contract as defined in Section 3088, except as provided in
Sections 3235 and 3236 and in subdivision (c) of this section.
(b) This section does not preclude the claimant from including in
the lien any amount due for labor, services, equipment, or materials
furnished based on a written modification of the contract or as a
result of the rescission, abandonment, or breach of the contract.
However, in the event of rescission, abandonment, or breach of the
contract, the amount of the lien may not exceed the reasonable value
of the labor, services, equipment, and materials furnished by the
claimant.
(c) The owner shall notify the prime contractor and construction
lenders of any changes in the contract if the change has the effect
of increasing the price stated in the contract by 5 percent or more.

3124. In any case where the claimant was employed by a contractor
or subcontractor, his claim of lien shall not extend to any labor,
services, equipment, or materials not included in the contract
between the owner and original contractor or any modification
thereof, if the claimant had actual knowledge or constructive notice
of the contract as defined in Section 3088 or any such modification
before he furnished such labor, service, equipment, or materials. The
filing of a contract for a work of improvement or of a modification
of such contract with the county recorder of the county where the
property is situated, before the commencement of work, shall be
equivalent to the giving of actual notice of the provisions thereof
by the owner to all persons performing work or furnishing materials
thereunder.