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Prompt Payment Act Applied Only To Retainage Retainage; Payment-final

Thursday, June 09, 2005 03:00 pm


A California court has ruled that when a contract did not call for retention of funds from progress payments, the contractor could not recover statutory penalties and attorney fees.

Hassan Hazegh awarded a contract to Thor McAndrew for improvements to property in Rancho Cucamonga. The contract called for payment of a lump sum amount "after the completion of the job." Nonetheless, McAndrew submitted periodic invoices for installment payments and Hazegh paid those invoices in full.

Upon completion of the work, a dispute developed regarding payment for extra work. McAndrew placed a lien on the property and filed suit for breach of contra [...]

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