Public WorksQuestion 618 of 1632

On a California public works contract, after the awarding body accepts the work as complete, retention proceeds must generally be released to the prime contractor within:

a.120 days after final acceptance of the work
b.90 days, with no penalty for a late release
c.30 days, or interest runs at the legal rate
d.60 days after completion, or 2% a month accrues

Explanation

Public Contract Code §7107(c) requires the public entity to release retention within 60 days after the date of completion, and §7107(f) charges 2 percent per month on any amount improperly withheld, in lieu of other interest, plus attorney's fees to the prevailing party in a collection action. The 90- and 120-day answers exceed the statutory window, and the penalty for delay is not optional. The 30-day figure borrows from progress-payment timing; §7107(d) does give the prime seven days to pass the retention down to its subs, which is a different clock.

Law Reference: Public Contract Code §7107(c), (f)

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