Legal Question in Construction Law in California

General Contractor Payment Schedule

Is there a fixed percentage of the total contract price that can be retained by law until the project is completed?


Asked on 11/04/07, 12:50 am

1 Answer from Attorneys
EZRA FRUCHTER LAW OFFICES OF E. LEONARD FRUCHTER

Re: General Contractor Payment Schedule

There is no such formula so far as I am aware. You don't say if this is a commercial job, new construction, or residential remodel. Except for residential remodel, the retention is what ever the parties agree to. however, in a residential remodel, the contractor is not permitted to demand or accept money in excess of the value of the work completed. Thus, you only pay after the work is done and you retain enough at all time to pay to complete the work remaining.

Good Luck

E. Leonard Fruchter

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Answered on 11/05/07, 1:00 pm


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