What are the prompt payment rules for construction in California?
Last reviewed July 5, 2026
California requires prompt payment to contractors and subcontractors. Generally, owners must pay the prime contractor within 30 days of receiving a proper invoice. The prime contractor must pay subs within 7 days of receiving payment. Late payments can lead to penalties and interest.
Key points
- Owners pay prime contractors within 30 days of invoice.
- Prime contractors pay subs within 7 days of payment.
- Late payments incur penalties and interest in California.
California's prompt payment laws are designed to keep cash flowing in the construction industry. If an owner doesn't pay on time, they may be liable for interest on the late amount. It's a good idea to keep track of payment schedules to avoid disputes.
How Alloovium helps
Alloovium helps track payment obligations and deadlines to ensure compliance with California's prompt payment rules.
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General information for US construction professionals — not legal advice. Lien deadlines, retainage caps and notice rules vary by state; verify with the state statute or a construction attorney.