(a) If the judgment debtor named in the abstract or certified copy of the judgment filed pursuant to this article is a contractor upon a public work, the cost of which is to be paid out of public moneys voted, appropriated, or otherwise set apart for such purpose, only so much of the contract price shall be deemed owing and unpaid within the meaning of Section 708.740 or 708.750 as may remain payable under the terms of the contractor's contract, upon the completion thereof, after deducting sums due and to become due to persons described in Section 9100 of the Civil Code. In ascertaining the sums due or to become due to such persons, only claims which are filed against the moneys due or to become due to the judgment debtor in accordance with Chapter 4 (commencing with Section 9350) of Title 3 of Part 6 of Division 4 of the Civil Code shall be considered.
§ 708.760.Contract Price Deemed Owing and Unpaid of Debtor Is Contractor Upon Public Work
Title 9. Enforcement of Judgments · Division 2 · Chapter 6. Miscellaneous Creditors' Remedies · Article 8. Collection of Judgment Where Judgment Debtor Is Creditor of Public Entity · Last amended 2012 · Last verified July 28, 2026
In one sentenceSection 708.760 limits what counts as owing to a debtor who is a public-works contractor to the contract balance remaining after completion, minus amounts owed to subcontractors and suppliers with properly filed claims, and generally bars deposits under this article until the contract is completed.
Full Text of § 708.760
(b) The Controller, auditor, or other public disbursing officer whose duty it is to make payments under the provisions of the contract may not deposit an amount with the court pursuant to this article until the contract is completed, but may deposit an amount with the court to satisfy the claim of the judgment debtor before the payments specified in subdivision (a) are made so long as a sufficient amount is retained for the satisfaction of the claims of persons described in Section 9100 of the Civil Code.
Plain-English Summary
A public works contractor's payment stream is complicated by the fact that subcontractors and material suppliers often have their own claims against the same contract funds. Section 708.760 makes sure this article's collection procedure does not jump ahead of those claims.
Only the amount that remains payable after the contract is finished, once sums due or to become due to the persons described in Civil Code § 9100 are deducted, counts as owing to the debtor for purposes of §§ 708.740 and 708.750. In figuring out those deductions, only claims filed against the contract funds under Civil Code § 9350 and following are counted.
Subdivision (b) also limits timing: the officer who handles payments under the contract cannot deposit funds with the court under this article until the contract is complete. The one exception is that the officer may still deposit an amount to satisfy the debtor's own claim before final payment, as long as enough is held back to cover the subcontractor and supplier claims described in subdivision (a).
Frequently Asked Questions
How much of a public-works contract balance can a creditor reach when the debtor is the contractor?
Only what remains payable after completion, once amounts due to subcontractors and suppliers described in Civil Code § 9100 with properly filed claims are deducted.
When can the disbursing officer deposit contract funds with the court under this article?
Generally not until the contract is completed, though the officer may deposit an amount for the debtor's claim earlier as long as enough is retained for subcontractor and supplier claims.
Which subcontractor or supplier claims reduce the amount available to the creditor?
Only claims filed against the contract funds under Civil Code § 9350 and following.
Amendment History
Amended by Stats 2010 ch 697 (SB 189),s 23, eff. 1/1/2011, op. 7/1/2012.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: public works contractor judgment debtor californiacollecting from public works contract balance