SB 1286 (Mountjoy), signed by Governor Wilson on August 10, 1995, was jointly sponsored by the American Institute of Architects, California Council (AIACC) and Consulting Engineers and Land Surveyors of California (CELSOC) to enforce prompt payment for works of improvement. The legislation was a response to the growing trend by public owners to delay, without cause, payments to design professionals.
The law applies to written contracts for private works of improvement entered into on or after January 1, 1996, and is divided into three areas: private works of improvement, public works of improvement, and public works of improvement which include the use of a subcontractor. The three areas are broken down as follows.
Section I. Written Contracts for Private Works of Improvement: Relates to contractual relationships between private contracting parties and design professionals.
Section II. Written Contracts for Public Works of Imrovement: Relates to contractual relationships between public agencies and design professionals.
Section III. Public Works of Improvements/Sub-consultants:Relates to contractual relationships between prime design professionals and sub-consultant design professionals.