Contracts & ExecutionQuestion 538 of 690
A subcontractor on a private project completes its work and the prime contractor withholds 10% retention. The owner has accepted the project and released all retention to the prime. Under B&P §7107, 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
B&P §7107 requires that a prime contractor release any retention proceeds withheld from a subcontractor within 10 days after receipt of the retention from the owner. Wrongful withholding triggers a 2% per month penalty and possible attorney fees.
Law Reference: Bus. & Prof. Code §7107Practice all 690 questions free — no signup required.
Related questions on this topic
- A consumer home-improvement contract includes a clause forcing the homeowner to pay all of the contractor's attorney fees in any dispute, while barring the homeowner from recovering her own. Under Civil Code §1670.5, a court reviewing this provision may:
- A general contractor receives a joint check made payable to BOTH the subcontractor and its material supplier. Best practice in California is for the GC to:
- 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?
- A home-improvement contract has a total contract price of $48,000. Under B&P §7159(d), the MAXIMUM down payment the contractor may demand or accept before any work or material delivery is:
- A consumer signs a home-solicitation contract for solar panel installation at her residence on a Tuesday at 6 PM. Under Civil Code §1689.5 et seq., she may cancel without penalty until midnight on:
- A contractor wishes to collect progress payments on a home-improvement contract. Under B&P §7159.5, each progress payment must:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California CSLB Contractor License Law & Business Exam · How we review