Business & LicensingQuestion 1438 of 1632

On a private project, a prime contractor must generally pay a subcontractor its share of a progress payment within how many days after receiving that payment from the owner?

a.30 days
b.7 days
c.60 days
d.90 days

Explanation

Under B&P Code section 7108.5 a prime contractor must pay each subcontractor its share within seven days after receiving a progress payment from the owner (b). Wrongful withholding carries a 2%-per-month penalty plus attorney's fees and is grounds for discipline. (a) 30 days and (d) 90 days are commercial terms, not the statute's. (c) 60 days is the Public Contract Code §7107 window for a public agency to release retention after completion — a different rule for a different project type. The 10-day figure candidates often reach for is Civil Code §8814, which governs passing RETENTION through to a subcontractor, not progress payments.

Law Reference: B&P Code §7108.5

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