Why You Should Think Twice Before Withholding Payment From Your Subcontractor

Contact: Katlyn Gregg, Procopio
Posted Nov 1, 2018

As anyone involved in even the most straightforward construction project is aware, payment disputes frequently arise between contractors.  If you are in the middle of the payment dispute, it may seem practical to withhold all payment to the subcontractor until the dispute is resolved.  However, a recent holding by the California Supreme Court demonstrates the danger in failing to timely pay a subcontractor for all amounts that are undisputed, regardless of ongoing issues between you.

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