A contractor finishes substantially all work on a private project and submits a proper final invoice for $30,000 (the retention). The owner refuses to pay although there is no genuine dispute. The contractor's BEST first step is to:
Explanation
With no good faith dispute, the owner must release retention within 45 days after completion (Civil Code §8812) and owes 2 percent per month on what is wrongfully withheld, plus attorney's fees (§8818); a written demand documents that claim while the 90-day lien deadline of §8412 runs. Re-entering to strip out installed work is unlawful self-help. The CSLB disciplines licensees but does not collect money owed to a contractor. And a stop payment notice under §8520 belongs to claimants other than the direct contractor, so the prime cannot use one against the owner.
Law Reference: Civil Code §8812; §8818; §8412; §8520This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
Practice all 1632 questions free — no signup required.
Own the complete CSLB Law & Business guide — PDF + EPUB, $24.99 →
Related questions on this topic
- Which item is generally considered a direct (job) cost rather than overhead?
- A contractor marks up direct costs by 35%. If the markup amount on a job is $14,000, what were the direct costs?
- On a unit-price paving contract at $3.20 per square foot, the field measures 9,500 square feet actually paved. What is the contractor entitled to be paid?
- An AIA-style "Application and Certificate for Payment" (commonly G702/G703) is used to:
- A contractor budgets a job at $250,000 total cost and is 60% complete. To stay on budget, total spending to date should be approximately:
- A homeowner signs a home improvement contract at the contractor's place of business after visiting the showroom. Which statement is most accurate?
Last reviewed: · editorial process