The prime contractor must pay the subcontractor within how many days after receiving a progress payment?

The prime contractor must pay the subcontractor within how many days after receiving a progress payment?

• A. 5 days
• B. 7 days
• C. 10 days
• D. 14 days

Answer: (B)

Prompt payment to subcontractors is the idea here. In California practice, once the prime contractor receives a progress payment from the project owner, they must pay the subcontractor for the work performed within seven days. This rule protects the subcontractor’s cash flow and helps keep the project moving smoothly, since subs rely on timely payments to cover labor and materials. If a portion is disputed, only the disputed amount can be withheld, while the undisputed portion should still be paid within seven days. Other timeframes (such as five, ten, or fourteen days) don’t reflect the standard requirement and could jeopardize cash flow for subs.

Prompt payment to subcontractors is the idea here. In California practice, once the prime contractor receives a progress payment from the project owner, they must pay the subcontractor for the work performed within seven days. This rule protects the subcontractor’s cash flow and helps keep the project moving smoothly, since subs rely on timely payments to cover labor and materials. If a portion is disputed, only the disputed amount can be withheld, while the undisputed portion should still be paid within seven days. Other timeframes (such as five, ten, or fourteen days) don’t reflect the standard requirement and could jeopardize cash flow for subs.