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Construction equipment secured by mechanic's lien

prompt payment penalties

Overview

A prompt payment penalty generally allows the creditor to recover a financial penalty (up to 2% per month in some cases) as well as attorney’s fees.  Prompt payment penalties can be effective tools for parties who have fully complied with the contract’s payment obligations but not received the prompt payment to which they are entitled.

 

 

The prompt payment penalty attorneys at Flores Ryan, LLP have expertise in every aspect of California and Federal prompt payment penalty laws. We provide our legal expertise to accomplish our client’s maximum recovery under the applicable prompt payment penalty law.  Our extensive experience as prompt payment law attorneys allows us to advance prompt payment penalty claims strategically to maximize the likelihood of a rapid and substantial recovery. 

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ARTICLES

Excavator
Do I Have A Differing Site Condition Claim? It Depends…

There’s no sugarcoating it. Encountering a differing site condition (“DSC”) on a jobsite can be a real headache. But whose headache is it in the end? This article covers various topics relating to differing site conditions.

Notice Of Nonresponsibility: Is It Enforceable?

Getting back to the basics of how a Notice of Nonresponsibility works, this article will provide an overview of what every contractor should know.

CSLB Arbitration: Will It Work For Me?

This article serves to educate the construction industry further on important topics of CSLB Arbitration.

CSLB Citations

Getting back to the basics of how a CSLB Citation works, this article will provide an overview of what every contractor should know.

KEY POINTS

  • Business and Professions Code section 7108.5 requires a prime contractor to make payment to a subcontractor within 7 days from the receipt of funds for work performed by that subcontractor.
  • A violation of Business and Professions Code section 7108.5 allows the subcontractor to recover a 2% per month financial penalty in addition to attorneys fees and costs.
  • Civil Code section 8812 requires a private owner to release retention to the prime contractor within 45 days after the date of completion.
  • Public Contract Code section 7107 requires a public entity to pay the prime contractor's retention within 60 days after the date of completion.
  • The obligation to make prompt payment under an applicable statue may not apply if a good faith dispute exists which is directly relevant to the specific payment otherwise due.

FORMS

Below you can generate the following forms are applicable to Mechanic’s Liens: