California has many statutes that require prompt payment by owners and contractors for work done on construction projects, both on Public and Private Works of Improvement. Not only do these laws require prompt payment within specified times but they also impose various penalties for failing to make payments on time to contractors and subcontractors, including lower tiered subcontractors.
L&H has prepared a table setting forth, by Public or Private Works of Improvement, time limits to make payments by owners and prime contractors and what penalties are imposed by failure to pay by the deadline.
In many instances, in addition to the harsh penalty, the payee is also entitled to an award of attorney’s fees if the recovery required bringing suit to get paid.
L&H Prompt Payment Penalty Table
The list on the table is not exhaustive but includes the most commonly used statutory relief. You should seek the advice of a construction attorney to determine if you are entitled to similar relief if you have not been paid in a timely manner. Contact Frank J Lanak or Natasha K Buchanan for more information on this subject.