Common use of PAYMENT OF SUBCONTRACTORS Clause in Contracts

PAYMENT OF SUBCONTRACTORS. Contractor shall pay any of its subcontractors not later than seven (7) days after receipt of any progress payment, unless otherwise agreed to in writing, the respective amounts allowed Contractor on account of the work performed by subcontractor(s), to the extent of each subcontractor’s interest therein, except as otherwise provided in Business and Professions Code Section 7108.5.

PAYMENT OF SUBCONTRACTORS. Contractor or subcontractor shall pay to any of its subcontractors subcontractor, not later than seven (7) days after receipt of any progress each payment, unless otherwise agreed to in writing, the respective amounts allowed the Contractor on account of the work performed by subcontractor(s)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 payment from the Contractor or subcontractor to a subcontractor, except as otherwise provided the Contractor or subcontractor may withhold no more than 150 percent of the disputed amount. Contractor shall include this provision in Business and Professions Code Section 7108.5all subcontracts.”