Insurance & LiensQuestion 482 of 1605
An owner of a private residential project withholds final payment because of disputed change-order work. Absent a genuine good-faith dispute, the owner must generally pay the direct contractor the final retention within how long after completion?
a.10 days
b.20 days
c.30 days
d.45 days
Explanation
Under Civil Code §8800, on a private work the owner must pay the direct contractor any retention within 45 days after completion of the work of improvement, unless there is a good-faith dispute. Wrongful withholding can expose the owner to a penalty plus the amount withheld.
Law Reference: Civil Code §8800Practice all 1605 questions free — no signup required.
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