Contracts & ExecutionQuestion 161 of 1632
On a private works project, after the owner pays the general contractor a progress payment, the general contractor must pay each subcontractor its share within how many days?
a.7 days
b.14 days
c.21 days
d.45 days
Explanation
Under California prompt payment law, a direct contractor on a private project must pay each subcontractor its portion within 7 days of receiving a progress payment from the owner.
Law Reference: Civil Code §8800This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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Related questions on this topic
- A contractor's fixed overhead is $90,000 per year and the average gross profit margin on jobs is 30%. How much sales revenue is needed to break even on overhead?
- A contractor adds a 5% contingency to a job estimated at $200,000 in direct costs. How much money does the contingency add to the estimate?
- On a project with a $250,000 contract, the owner withholds 5% retention from each progress payment. After $150,000 of work has been billed and approved, how much retention has been withheld so far?
- If an owner wrongfully withholds an undisputed progress payment from a general contractor, California prompt payment law allows a penalty of:
- After a project is satisfactorily completed and accepted on a private works job, the owner must release retention to the general contractor within:
- After receiving retention from the owner, a general contractor on a private works project must pass through each subcontractor's retention within:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)