How long does a prime contractor have to pay a subcontractor in California?

Under Cal. Bus. & Prof. Code § 7108.5, a prime contractor on a California public project must pay its subcontractors within 7 calendar days of receiving payment.

What interest is owed on a late subcontractor payment in California?

2% per month, under Cal. Bus. & Prof. Code § 7108.5. Exceptions apply.

DueVault · California · public projects

California prompt payment interest calculator

On a California public project, a prime contractor must pay its subcontractors within 7 calendar days of being paid. Miss that and interest runs at 2% per month — under Cal. Bus. & Prof. Code § 7108.5.

State (public projects)

Payment you were owed

Date the prime was paid

Date you were paidStill unpaid

The rule in California

Agency to prime contractor: 30 days after a payment request; 60 days of completion for final.
Prime contractor to subcontractor: 7 calendar days after the prime is paid.
Interest when that is missed: 2% per month

Exceptions worth knowing before you rely on a number

The 7-day deadline applies “unless otherwise agreed to in writing” — your subcontract can change it.
Where there is a good faith dispute, the paying party may withhold up to 150% of the disputed amount.
§7108.5 covers public and private work EXCEPT where Public Contract Code §10262 applies (certain state projects).
10% per year is the rate owed to primes; 2% per month is the subcontractor rate.

Statute read 2026-08-28 from the published text. DueVault is not a law firm and this is not legal advice. Public construction only.