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Final Payment request question, subcontractor

CaliforniaConstruction Contract Retainage

Good afternoon, I am writing up a proposal and under my conditions I want to state that the general contractor should pay final payment within 10 days. Does this sound right too you " final payment due within 10 days of payment request"? I read on your site about payments for sub contractors and it states subs must be paid within 10 days of final payment request. Thank you

1 reply

Jan 15, 2020

It sounds like you're referring to California's retainage deadline. California's retainage laws require that a GC make final payment to their subcontractors within 10 days of the GC receiving payment, themselves. So, it's important to note when that 10-day period begins to run - from the GC's receipt of payment, and not based simply on when the sub has requested final payment. You can find a little more detail on that and California's other retainage considerations here: California Retainage Guide and FAQs. As for how, exactly, to word that in a proposal - I'm afraid I'm not able to advise you on how to draft your proposal or agreement. But, note that less is often more. Drafting an agreement or proposal with simple language can help to avoid confusion or frustration about the expected terms and obligations under the agreement. And, of course, consulting with a California construction lawyer - like one of these California Construction Payment Experts - could help with drafting your project documentation.

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