Last month, we reported problems in California where the government’s spending freeze affected thousands of public construction projects, and an enormous amount of contractors and laborers. Today, the San Francisco Chronicle has mixed news regarding this problem – as California is pumping money to salvage some of these projects, but more money is still needed.
The article states that 276 of the problem projects will be allowed to continue work (for now), because “shutting them down would cost more than it would take to complete the jobs.”
But the problem is far from over, as the article goes on to warn:
But state officials warned that if the governor and the Legislature are unable to find a solution to California’s $42 billion budget deficit by the end of this month, the remainder of the work could end.
A full list of the affected projects can be read here:
If you and your company are working on a public project affected by this spending freeze, you will want to file a Stop Notice to preserve your rights to Get Paid for work performed.