Contracts & ExecutionQuestion 538 of 1632

A subcontractor on a private project completes its work and the prime contractor withholds 5% retention. The owner has accepted the project and released all retention to the prime. Under Civil Code §8814, the prime must release the sub's retention within how many days?

a.Within 10 days of receipt from the owner
b.Within 30 days of receipt from the owner
c.Within 60 days of subcontractor completion
d.Only after final acceptance by all subcontractors

Explanation

Civil Code §8814 requires a prime contractor to release retention withheld from a subcontractor within 10 days after receiving the retention from the owner (a). Wrongful withholding triggers a 2% per month penalty under Civil Code §8818, plus costs and attorney fees to the prevailing party. (b) 30 days and (c) 60 days are contract terms, not the statute's; 60 days is the Public Contract Code §7107 window for a public agency, a different project type. (d) invents a condition — no subcontractor's acceptance gates another's retention. The retention percentage itself is capped at 5% by Civil Code §8811 for contracts entered into on or after January 1, 2026.

Law Reference: Civil Code §8814

This 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

Last reviewed: · editorial process

PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)
Report