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The California Prompt Pay Act

By October 22, 2020No Comments
Prompt Pay

The California Prompt Pay Act requires owners and contractors to timely pay for work done on construction projects, both on Public and Private Works of Improvement, otherwise be faced with monetary penalties for failing to make payments on time to contractors and subcontractors, including any tier of subcontractors.

L&H has prepared a table setting forth, by Public or Private Works of Improvement, the time limits when payments must be made by owners and prime contractors and what penalties are imposed if payments have not been made by the deadline.

Prompt Pay Table

 

In many instances, in addition to the harsh penalty, the payee is also entitled to an award of attorney’s fees if the payee was forced to file a lawsuit to recover its payments.

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.

For more information about this subject, please contact Senior Counsel Natasha K. Buchanan, nkbuchanan@lanak-hanna.com.

 

The information contained herein is not advice and should not be treated as such.

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