Blois Construction v. FCI/Fluor/Parsons
Annotate this CasePursuant to Public Contract Code section 7107, when a project owner pays a direct contractor the amount it had previously withheld as retentions, the direct contractor must pay its subcontractors their share of the retention within seven days or face penalties. The court concluded that, in this case, the decision by the owner to stop withholding future retentions and pay full progress payments to the contractor was not equivalent to a payment by the owner of past retentions under section 7107. Accordingly, the court concluded that the subcontractor is not entitled to late payment penalties under section 7107. The court affirmed the trial court's judgment.
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