Under California's prompt payment law, if a contractor submits a proper payment request to a property owner, payment is due within how many days?
Correct Answer
B) 30 days
California's prompt payment law requires payment within 30 days of a proper payment request.
Why This Is the Correct Answer
Under California Civil Code Section 8814, the prompt payment law requires property owners to pay contractors within 30 days of receiving a proper payment request. This 30-day period begins when the owner receives a complete and accurate payment application that includes all required documentation. The law was designed to ensure timely payment and improve cash flow for contractors working on construction projects.
Why the Other Options Are Wrong
Option A: 20 days
10 days is too short a timeframe under California's prompt payment law. While some states may have shorter payment periods, California specifically provides 30 days for property owners to process and pay contractor payment requests.
Option C: 10 days
20 days falls short of California's statutory requirement. The prompt payment law clearly establishes 30 days as the maximum allowable payment period to balance the needs of both contractors and property owners.
Memory Technique
Remember 'California 30' - like the number of days in most months, California gives property owners a full 30 days to pay contractors.
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Calculate the maximum down payment a contractor can legally request for a $24,000 kitchen remodel under B&P Code 7159.
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A contractor completes $8,500 worth of kitchen remodeling work on March 15th. The homeowner disputes $2,000 of the charges. Under California prompt payment law, when must the undisputed portion be paid?