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.
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.
Why the Other Options Are Wrong
Option A: Within 60 days after receiving the first bid.
Within 60 days after receiving the first bid. skips the written authority, scope, price, notice, or release control needed for subcontractor retention.
Option C: Only after the public entity renews the contractor's license.
Only after the public entity renews the contractor's license. skips the written authority, scope, price, notice, or release control needed for subcontractor retention.
Option D: Use the agency standard retention percentage without checking the statutory cap or exception.
Use the agency standard retention percentage without checking the statutory cap or exception. skips the written authority, scope, price, notice, or release control needed for subcontractor retention.
Memory Technique
When public clashes with contract, let the contract speak before Paying Agency.
Reference Hint
Study anchor (closed-book): memorize Subcontractor retention from California Code, Public Contract Code Sections 7107 and 7201. / California Code, Public Contract Code Section 7107; know the rule or calculation trigger without relying on exam-room lookup.
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