Contracts & ExecutionQuestion 211 of 1632

A contractor stops work on a project for two weeks because the owner has not made an undisputed progress payment that is clearly due. This work stoppage is:

a.Abandonment under §7107, whatever the reason for leaving
b.Grounds for automatic license revocation by the Registrar
c.Permitted only after a 10-day written notice to the owner
d.A lawful suspension, not abandonment, since payment was due

Explanation

B&P §7107 makes abandonment - leaving a project without legal excuse - a cause for discipline, so a stoppage the owner's own failure to pay a clearly due, undisputed amount justifies is a suspension rather than abandonment. The reason for leaving is exactly what §7107 turns on, so 'whatever the reason' misreads it. Discipline is never automatic: the Registrar must proceed by accusation. And no statute conditions a justified suspension on 10 days' written notice.

Law Reference: B&P Code §7107

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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)
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