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Can I withhold payment?

California

There is a progress payment schedule in the contract I signed with our contractor for a home improvement project. One of the progress payments is “due upon passing rough inspections”. The rough electrical passed, but the rough framing was only a partial with “corrections” required by the inspector before it would pass. Can I withhold the payment until the rough framing inspection passes?

3 replies

Jun 28, 2021
Generally, if the progress payment schedule calls for payment upon passing of rough inspection, that means what it says. So if rough framing didn't pass, then by the terms you can withhold payment until the rough inspection passes. For residential projects a contractor can only bill you for work performed and materials delivered. There are no advances after the deposit. However, it's also risky to withhold payments if asked for in good faith. It would be prudent to have an attorney review the contract, and the permit signoff sheet.
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Jun 29, 2021
Thanks, Brion. We would love for an attorney to review the contract and permit sign off sheet. Is that something you can help us with?
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Jun 29, 2021
Yes, you can email me the documents. My website with contact information is: brionlaw.com
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