California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 6 — Works of Improvement, Title 2 — Private Works of Improvement, Chapter 8 — Prompt Payment, Article 2 — Retention Payment, Section 8816

(a) If the direct contractor gives the owner, or a subcontractor gives the direct contractor, notice that work in dispute has been completed in accordance with the contract, the owner or direct contractor shall within 10 days give notice advising the notifying party of the acceptance or rejection of the disputed work. Both notices shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1.

(b) Within 10 days after acceptance of disputed work, the owner or direct contractor shall pay the portion of the retention relating to the disputed work.

Notes

Requires an owner or direct contractor, within 10 days after receiving notice that disputed work was completed according to contract, to notify the sending contractor or subcontractor whether the work is accepted or rejected. Requires payment of the retention portion related to accepted disputed work within 10 days after acceptance.

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