Prompt Progress Payment Clause Samples

Prompt Progress Payment. In accordance with California Business and Professions Code section 7108.5, the prime contractor or subcontractor shall pay to any subcontractor, not later than seven days after receipt of each progress payment, unless otherwise agreed to in writing, the respective amounts allowed the contractor on account of the work performed by the subcontractors, to the extent of each subcontractor’s interest therein. In the event that there is a good faith dispute over all or any portion of the amount due on a progress payment from the prime contractor or subcontractor to a subcontractor, the prime contractor or subcontractor may withhold no more than 150 percent of the disputed amount. Any violation of this requirement shall constitute a cause for disciplinary action and shall subject the licensee to a penalty, payable to the subcontractor, of 2 percent of the amount due per month for every month that payment is not made. In any action for the collection of funds wrongfully withheld, the prevailing party shall be entitled to his or her attorney’s fees and costs. The sanctions authorized under this requirement shall be separate from, and in addition to, all other remedies, either civil, administrative, or criminal. This clause applies to both DBE and non- DBE subcontractors.

Prompt Progress Payment. Consultant or subconsultant shall pay to any subconsultant, not later than fifteen

Prompt Progress Payment. Contractor shall pay each subcontractor participating on the contract for satisfactory completion of accepted work no later than seven (7) calendar days from the receipt of each progress payment the Contractor receives from MTS in accordance with Section 7108.5 of California Business and Professions Code. Any subcontractor will also be required to pay any lower-tier subcontractors for satisfactory completion of accepted work no later than seven (7) calendar days from the receipt of each progress payment from the prime contractor. Any delay or postponement of payment over 30 calendar days may occur only for good cause following written approval of MTS. This clause applies to both DBE and non-DBE subcontractors.