• Guide to Prompt Payment Statutes For Construction Work in California
  • July 20, 2011
  • Law Firm: RB PIERCE A Professional Law Corporation - Brea Office
  • PROJECT TYPE

    CALIFORNIA STATUTE

    PAYOR
    PAYEE

    PAYMENT TYPE                   

    PAYMENT TIME                                                    

    PENALTY & LEGAL FEES                   

    STATUTORY EFFECTIVE DATE

    Public Works

    Public Contract Code §7107

    Public Entity

    Retention

    60 days after Date of Completion

    2% per month in lieu of interest; attorneys fees and costs

    Contracts entered into after January 1, 1993

    Original Contractor

    Public Works

    Public Contract Code §10261.5

    State Agency

    Progress payments

    30 days 

    10% annual interest

    January 1, 1991

    Contractor

    Public Works

    Government Code §926.19 & §927.4

    State Agency

    Any undisputed payment

    31 days after notice undisputed payment is due

    Interest in the Pooled Money Investment Account minus 1% with costs and legal fees to plaintiff

    January 1, 1997

    Any Person

    Public Works

    Public Contract Code §20104.50

    Local Agency

    Progress payments

    30 days after payment request

    10% annual interest

    January 1, 1993

    Contractor

    Public Works

    Public Contract Code §10853

    California State University

    Progress payments

    39 days after payment request

    10% annual interest after payment is due

    January 1, 1993

    Prime Contractor

    Public Works

    Business & Professions Code §7108.5

    Any Prime Contractor or Subcontractor

    Amount allowed contractor for work performed by subcontractor

    10 days from receipt of funds by contractor+

    2% per month in addition to interest; attorneys fees and costs

    January 1, 1991

    Subcontractor (all tiers)

    Public Works

    Public Contract Code §10262.5

    Any Prime Contractor or Subcontractor

    Amount allowed contractor for work performed by subcontractor

    10 days from receipt 

    2% per month in addition to interest; attorneys fees and costs

    January 1, 1991

    Subcontractor 

    Public Works
    (Utility Contracts)

    Civil Code §3262.5

    Any Prime Contractor 

    Amount allowed contractor for work performed by subcontractor

    15 working days from receipt

    2% per month in addition to interest; attorneys fees and costs

    January 1, 1992

    Subcontractor

    Public Works

    Public Contract Code §7107

    Original Contractor

    Retention received by contractor

    7 days from receipt 

    2% per month in lieu of interest; attorneys fees and costs

    Contracts entered into after January 1, 1993

    Subcontractor

    Public Works

    Public Contract Code §22300

    Prime Contractor

    Interest on escrowed retention funds net of costs

    Within 20 days of receipt

    Unspecified.  Cannot waive.

    Contracts entered into on or after January 1, 1999

    Subcontractor

    Public Works

    Civil Code §3320

    Public Agency

    Progress payments and retentions

    30 days (progress payment) or 45 days (retention) after written demand

    1½% per month in lieu of interest, attorneys fees and costs

    Contracts entered into after January 1, 1996

    Architect, Engineer, and Land Surveyor

    Public Works

    Civil Code §3321

    Prime Design

    Progress payments and final payments

    15 days after receipt of payment from agency

    1½% per month in lieu of interest, attorneys fees and costs

    January 1, 1996

    Professional

    Public Works

    Business & Professions Code §7108.6

    Licensed Contractor

    Progress payments

    20th of the month following services

    2% per month; attorneys fees and costs

    January 1, 1996

    Dump Truck Operator

    *10 days after notice as required by statute for contracts entered into after January 1, 1994                                       +Unless otherwise agreed to in writing.

    PROJECT TYPE

    CALIFORNIA STATUTE

    PAYOR
    PAYEE

    PAYMENT TYPE                   

          PAYMENT TIME                                              

    PENALTY & LEGAL FEES                   

    STATUTORY EFFECTIVE DATE

    Private Works

    Civil Code §3260.1

    Owner

    Progress payments

    30 days after request for payment+

    2% per month in lieu of interest; attorneys fees and costs

    Contracts entered into after January 1, 1992

    Prime Contractor

    Private Works

    Civil Code §3260

    Owner

    Retention 

    45 days after Date of Completion*

    2% per month in lieu of interest; attorneys fees and costs

    Contracts entered into after January 1, 1993

    Original Contractor

    Private Works

    Civil Code §3260

    Original Contractor

    Retention received by contractor

    10 days after receipt*

    2% per month in lieu of interest; attorneys fees and costs

    Contracts entered into after July 1, 1991

    Subcontractor

    Private Works

    Business & Professions Code §7108.5

    Any Prime Contractor or Subcontractor

    Amount allowed contractor for work performed by subcontractor

    10 days from receipt of funds by contractor+

    2% per month in addition to interest; attorneys fees and costs

    January 1, 1991

    Subcontractor (all tiers)

    Private Works

    Business & Professions Code §7108.6

    Licensed Contractor

    Progress payments

    20th of the month following services

    2% per month; attorneys fees and costs

    January 1, 1996

    Dump Truck Operator

     

    Federal Public Works

    31 USC §3905

    Prime Contractor

    Progress payments

    7 days from receipt (mandatory subcontract provision)

    7% annual interest

    October 17, 1988

    Subcontractor

     

    Indian Lands

    See Chief or Tribal Council

    *10 days after notice as required by statute for contracts entered into after January 1, 1994                       +Unless otherwise agreed to in writing.

     

     

     

     

     

     

     

     

    Prepared by Ronald B. Pierce, Attorney at Law and President of RB PIERCE, A Professional Law Corporation, 949.244.9367,  [email protected].

     

                                                                                                                                                                                                                                                                                    ©  Ronald B. Pierce 2011