Business and Professions Code section 7108.5 and Public Contract Code 7107 are prompt payment statutes, designed to make sure that subcontractors are promptly paid for services/work/materials once the contractor receives either progress payments or retention proceeds on public works construction projects. However, each provision does have a good faith/bona fide dispute only triggering fees for “wrongfully withheld” payments received by the contractor and due to the subcontractor–after all, construction disputes are abundant between these type of parties.
IDEX Global Services, Inc. v. J.K. Merz Construction, Inc., Case No. A134287 (1st Dist., Div. 5 Mar. 11, 2013) (unpublished) affirmed denial of prompt payment fees because the record did show there were bona fide disputes, so the substantial evidence rule required affirmance.