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Progress payments

CaliforniaCash FlowConstruction AccountingPayment Disputes

I’ve searched different websites and still can’t find an answer. I’m a California general contractor and a subcontractor (cabinet maker) is asking for a 10% deposit ($10k) and wants progress payments while they are fabricating the cabinets. Since I, as a GC, can’t ask for progress payments without materials on the jobsite, can a subcontractor? Thanks in advance! John Rising 415-342-3066

3 replies

Oct 6, 2020
Subcontractors can ask for whatever payments they want and that you agree to. They don’t have the same restrictions that a GC has when dealing with a homeowner. The feeling is that homeowners need the most protections since they’re not in the construction business. I’m happy to help you with this if you have more questions. Cathleen M. Curl, Esq. Law Office of Cathleen M. Curl 700 El Camino Real, Suite 200 Millbrae, CA 94030 T 650-871-5955
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Oct 9, 2020
Thanks Cathleen, it seems counter-intuitive however if the subcontractor is also licensed by the CSLB, I'll try to reach out soon to discuss. John
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Oct 4, 2022
This advice isn’t completely accurate. Cabinet makers are allowed to ask for 10% down or $1,000 whichever is less. I suppose they can ask for more because I’m not sure there’s a penalty and I do believe they can ask for progress payments. Ask to pay for the materials directly.
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