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How does California define "Construction Project" in regards to the prompt payment act?

CaliforniaPrompt Payment

I'm a small plumbing business owner and I'm trying to figure out if this prompt payment act applies to any work that I do on a building whether it be small repairs or large renovations.

1 reply

Feb 14, 2020
Assuming that this is private work and that you are a licensed contractor, the size of the repair or renovation should not matter, only that the work involves a "work of improvement." Under Civ. Code, § 8050:

(a) “Work of improvement” includes, but is not limited to:

(1) Construction, alteration, repair, demolition, or removal, in whole or in part, of, or addition to, a building, wharf, bridge, ditch, flume, aqueduct, well, tunnel, fence, machinery, railroad, or road.

(2) Seeding, sodding, or planting of real property for landscaping purposes.

(3) Filling, leveling, or grading of real property.

(b) Except as otherwise provided in this part, “work of improvement” means the entire structure or scheme of improvement as a whole, and includes site improvement.

Emphasis added.

Small repairs or large renovations would both meet this definition. If your contract is with owner then prompt payment of progress payments will be governed by Civ. Code §8800 (owners to pay prime contractors within 30 days of contractor’s request) and prompt payment of retention will be governed by Civ. Code §8812 (owners to pay direct contractors within 45 days after completion). If your work is as a subcontractor, prompt payment of progress payments will be governed by Business and Professional Code §7108.5 (prime contractor or subcontractor to pay all tiers of subcontractors within 7 days of receipt of funds by contractors) and retention by Civil Code §8814(direct contractors who have withheld retention from one or more subcontractors to pay each subcontractor their share of the retention within 10 days of the direct contractor receiving all or part of the retention withheld by the owner.)
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