Contracts & ExecutionQuestion 71 of 1605
A general contractor must pay a subcontractor within how many days of receiving payment from the owner?
a.3 days
b.7 days
c.10 days
d.30 days
Explanation
Because payment comes from the owner, this is a private project. Under Civil Code §8814 (and B&P §7108.5), a direct (general) contractor must pay each subcontractor its share within 7 days of receiving a progress payment from the owner, or face a 2%-per-month penalty. Ten days is the separate deadline for releasing withheld retention to a subcontractor — not the progress-payment rule this question asks about.
Law Reference: Civil Code §8814Practice all 1605 questions free — no signup required.
Related questions on this topic
- Which contract type places the MOST financial risk on the contractor?
- A subcontractor fails to complete their scope of work on a project. The prime contractor's primary recourse is:
- California's "prompt payment" law requires owners to pay general contractors within how many days of a proper invoice?
- A contractor is hired to build a room addition. After completion, the homeowner claims defects. The contractor's written warranty on new residential construction must be at least:
- On a $40,000 home improvement contract, what is the maximum down payment a contractor may legally demand or accept before work begins?
- On a $6,000 home improvement contract, what is the maximum allowable down payment?
Last reviewed: · editorial process
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)