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Does acceptance by a Public Entity of a Private Work supersede Occupancy accompanied by a Cessation of Labor?

In CA, a private commercial Work (Apartments) has received Temporary Certificate of Occupancy (TCO) from the City, and the owner's clients moved in on 11/11/2019. Our scope of work was complete on 01/30/2020, but the owner has not completed his requirements to receive a full Certificate of Occupancy (CO). Is the "Completion Date" set as "Occupancy accompanied by a Cessation of Labor", or upon "Acceptance by a public entity"?

2 replies

Feb 20, 2020

For private works projects, Civil Code section 8180 provides that “completion of a work of improvement occurs upon the occurrence of any of the following events”: 1. Actual completion of the work of improvement; 2. Occupation or use by the owner accompanied by cessation of labor; 3. Cessation of labor for a continuous period of 60 days; 4. Recordation of a notice of cessation after cessation of labor for a continuous period of 30 days; or 5. If a work of improvement is subject to acceptance by a public entity, completion occurs on acceptance. As the occupants have already moved in, the last day of labor by any contractor on the project will likely constitute the completion date. But if a a full Certificate of Occupancy is issued before then, that might also arguably be considered the completion date. It really depends on the specific facts of your project. A recent appellate case, Picerne Construction Corp. v. Castellino Villas, California Court of Appeals for the Third District, Case No. C071197 (February 18, 2016) demonstrates this ambiguity. If your work was complete on January 30, 2020, and no notice of completion has been recorded, then you have at least 90 days from then to record your lien. The safest practice would be to follow that deadline.

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Feb 20, 2020

Thank you Peter. I appreciate your help in interpreting the point, as well as the citation. Have a great weekend. -Chris

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