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Can a prime contractor withhold payment from a sub contractor up to 90 days or even 60 or 70 days ?

CaliforniaConstruction ContractPay ApplicationsPay When PaidRetainage

Private project I am a subcontractor seeking payment from prime contractor. They're telling me I can't get paid until they get paid which happens to be around 90 days from when I started working project will be done 100% way before that not received one dime as of yet. Please advise

1 reply

May 6, 2021

It will be important to refer to your subcontract to determine the rights, duties, and responsibilities of the parties regarding payment. Of course, the contract's terms and conditions must comply with California law. Recently, there was a California appellate court case which opined on the enforceability of "pay when paid" clauses in California. This might
help you understand the enforceability of pay when paid clauses in California –at the end of the day, they have to be “reasonable.” https://www.gibbsgiden.com/blog/pay-when-paid-courts-hold-a-reasonable-time-now-has-to-be-reasonable/ Whether 90 days is “reasonable” or not has not been decided by the courts. 

  

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