California Construction Law Flashcards

Under the California Prompt Payment Act, how many days after receipt of an undisputed invoice must a general contractor pay a subcontractor?

Answer: 10 days

California Business and Professions Code §7108.5 requires general contractors to pay subcontractors within 10 days of receiving payment from the owner.

In California, what is the required 'cooling-off' period during which a homeowner may cancel a home improvement contract?

Answer: 3 business days

California law provides homeowners a 3-business-day right to cancel a home improvement contract after signing.

Which California agency, in addition to the CSLB, must contractors comply with regarding prevailing wage laws on public works projects?

Answer: California Department of Industrial Relations (DIR)

The California Department of Industrial Relations (DIR) administers and enforces prevailing wage laws on public works projects.

What does a 'stop payment notice' allow a subcontractor to do on a California construction project?

Answer: Freeze construction loan funds held by the lender

A stop payment notice allows a subcontractor to freeze construction loan proceeds held by a lender to secure payment for unpaid work.

Under California's Contractor State License Law, aiding and abetting an unlicensed contractor can result in what penalty?

Answer: Suspension or revocation of the licensed contractor's own license

A licensed contractor who allows an unlicensed person to use their license risks suspension or revocation of their own license by the CSLB.

When must a California contractor provide the 'Three-Day Right to Cancel' notice to a homeowner?

Answer: At the time of signing the home improvement contract

California law requires contractors to provide the Three-Day Right to Cancel notice at the time the home improvement contract is signed.