Contracts & ExecutionQuestion 69 of 1605
A subcontractor fails to complete their scope of work on a project. The prime contractor's primary recourse is:
a.File a complaint with CSLB
b.Withhold payment and hire another sub to complete the work, then sue for the cost difference
c.Abandon the entire project
d.Request a change order from the owner
Explanation
The prime contractor can withhold payment from the defaulting subcontractor, hire a replacement to complete the work, and sue the original sub for any additional cost incurred above the original subcontract price.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)