A prime contractor receives a $200,000 progress payment from the owner. The subcontract calls for $40,000 to a plumbing sub for completed work that was approved in the payment. Under B&P §7108.5, the prime must pay the sub within how many days of receipt?

Explanation

B&P §7108.5(a) gives the direct contractor 7 days after receipt of each progress payment to pay each subcontractor its share, unless the parties agree otherwise in writing; wrongful withholding costs 2 percent of the amount due per month plus the prevailing party's attorney's fees (§7108.5(b)-(c)), and in a good faith dispute no more than 150 percent of the disputed amount may be held back. Each wrong number is a real California deadline for a DIFFERENT payment. (a) 10 days is Civil Code §8814, the direct contractor's deadline to pass RETENTION through to subs. (b) 30 days is Civil Code §8800, the owner's deadline to pay the direct contractor a progress payment after a demand. (c) 45 days is Civil Code §8812, the owner's deadline to release retention after completion of the work of improvement.