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The original contractor receives retention that includes a subcontractor's share. When should the original contractor pass the subcontractor's share if no allowed withholding applies?

Correct Answer

B) Within 7 days after receiving the retention payment.

Public Contract Code Section 7107 generally requires the original contractor to pay the subcontractor's share of retention within 7 days after receipt.

Answer Options
A
Within 60 days after receiving the first bid.
B
Within 7 days after receiving the retention payment.
C
Only after the public entity renews the contractor's license.
D
Use the agency standard retention percentage without checking the statutory cap or exception.

Why This Is the Correct Answer

Public Contract Code Section 7107 generally requires the original contractor to pay the subcontractor's share of retention within 7 days after receipt.

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