Under the January 2026 Caltrans Local Assistance Procedures Manual’s Method 3 for Federal-aid construction retainage, the prime receives retention covering a subcontractor’s satisfactorily completed work. No different written payment agreement or allowed delay applies. When must the prime pay that subcontractor’s retention share?
Correct Answer
B) Within 7 days after receipt of the retention payment
The January 2026 LAPM, Chapter 9, printed page 23, Method 3(a), gives construction-subcontract retainage a seven-day period after receipt, unless otherwise agreed in writing for completed construction work. The scenario excludes a different agreement and an allowed delay. The adjacent fifteen-day entry is for consultant contracts, not this construction subcontract. The manual defines satisfactory completion and also addresses monitoring and authorized delays. This is the expressly identified Federal-aid contract framework; it does not establish every exception to Public Contract Code section 7107 or every public-works contract’s payment terms. Source: https://dot.ca.gov/-/media/dot-media/programs/local-assistance/documents/lapm/ch09.pdf
Why This Is the Correct Answer
The January 2026 LAPM, Chapter 9, printed page 23, Method 3(a), gives construction-subcontract retainage a seven-day period after receipt, unless otherwise agreed in writing for completed construction work. The scenario excludes a different agreement and an allowed delay. The adjacent fifteen-day entry is for consultant contracts, not this construction subcontract. The manual defines satisfactory completion and also addresses monitoring and authorized delays. This is the expressly identified Federal-aid contract framework; it does not establish every exception to Public Contract Code section 7107 or every public-works contract’s payment terms. Source: https://dot.ca.gov/-/media/dot-media/programs/local-assistance/documents/lapm/ch09.pdf
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