Contracts & ExecutionQuestion 198 of 1605
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:
a.Re-enter the property and remove installed materials
b.Immediately surrender its contractor license
c.Lower the invoice by 50% to encourage payment
d.Send a written demand for the retention and, if unpaid, pursue prompt-payment remedies and lien/bond rights
Explanation
Where there is no good-faith dispute, the contractor should make a written demand and then enforce its rights through prompt-payment penalties and mechanics' lien or bond claims. Self-help removal of materials is unlawful.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)