Owner to Prime Contractor (Private): Unless otherwise agreed by contract, 30 days after receipt of invoice.
Prime Contractor to Subcontractor (Private): 7 days after receipt of payment from the owner.
Interest/Penalties (Private): Interest at a rate of 2% per month. Attorney’s fees and costs awarded to prevailing party.
Owner to Prime Contractor (Public): 30 days after receipt of invoice.
Prime Contractor to Subcontractor (Public): 7 days after receipt of payment from the owner.
Interest/Penalties (Public): Prime contractor: interest at a rate of 10% per year; Subcontractor: interest at a rate of 2% per month. Attorney’s fees and costs awarded to prevailing party.
Pay-If-Paid Permissible: No.
Disclaimer: This information was published on July 1, 2020. Please contact Josh Levy, Eric Meier or Samantha Schacht for modifications made by California since that date. Visit our 50-State Construction Law Map for information on other states.