At the Los Angeles, California law firm of Baker & Associates, we represent clients throughout Southern California including the communities of Santa Clarita Valley, Santa Monica, Northridge, Porter Ranch, Simi Valley, Studio City, Encino, Thousand Oaks, Westlake Village and Valencia.
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BAKER & ASSOCIATES
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Woodland Hills, CA 91367
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Prompt Pay
Wrongful Withholding Attorney, Los Angeles, CA
At the law firm of Baker & Associates we understand that timely payment and receipt of quality workmanship for a project are import to the continuing success of a business. In order to protect your interests, we will review all options of recovery and will pursue payment on your behalf through aggressive negotiation and litigation.
Baker & Associates attorneys represent general contractors, subcontractors, suppliers, and landscapers in the collections process. There are many avenues our firm can take to collect money owed for construction services you or your company rendered.
Prompt Pay in California Construction Matters
The prompt payment statutes generally provide that an owner or general contractor must pay for work promptly, and may withhold up to 150 percent of a disputed progress payment or retention where there is a “bona fide” or “good faith” dispute. To deter unscrupulous owners, the Legislature provided a remedy for the contractor, whereby the owner must pay a 2 percent per month penalty to the contractor on any “improperly withheld” funds, i.e. where there is no “bona fide” or “good faith” dispute.
Prompt Pay and Attorney Fees
The statutes also provide that the “prevailing party” in any action to recover the “wrongfully withheld” funds shall be entitled to attorney’s fees. The net effect of the statutes was to level the playing field by basically providing contractors with additional remedies in the event the owner breached the contract by failing to timely make payment or by refusing to make payment based on frivolous excuses. Baker & Associates recently won a significant victory in the Court of Appeals on this issue.
Contact a Construction Prompt Pay Lawyer
One of the most important things a contractor is typically concerned about is getting paid. Payment can often be delayed by allegations of faulty workmanship, contract disputes, or lack of money by the owner. It can be a frustrating and financially burdensome experience when a construction company isn't paid after providing its services, materials, and workers. Our experienced attorneys know how to navigate your case to a successful conclusion.
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