Legal Question in Construction Law in California
Retention? Does it need to be in contract?
Can retention be legally withheld if it is not mentioned in the home remodeling contract? Only progress payments and final payment are specified as well as a right to stop work if a payment has not been received in 10 days.
Thanks!
1 Answer from Attorneys
Re: Retention? Does it need to be in contract?
Under Civil Code Sec. 3260, a private project owner must pay the retention to a prime contractor within 45 days after completion of the project. Completion includes issuance of a certificate of occupancy and the date indicated on a valid recorded notice of completion. The prompt payment requirement is not waivable by contract.
Generally, the amount of retention is specifically noted in the contract and is based on the value of the work. In other words, an owner should not withhold the final progress payment which corresponds to 30% of the contract price if the outstanding items of work are valued at only 10% of the entire contract.
If you need legal help, contact my office.
Good Luck.
www.SoCalConstructionLaw.com
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
