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HomeCivil CodeDiv. 4Pt. 6Ch. 8Art. 2§ 8818 Retention Payment Penalties

§ 8818 Retention Payment Penalties

Civil Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 8818 Retention Payment Penalties

Key Takeaways

  • •If someone doesn't pay you the money they owe you on time for work you did, they have to pay extra money as a penalty.
  • •The penalty is 2% of the money they owe you for every month they are late.
  • •If you have to go to court to get the money they owe you, the person who wins the case can make the other person pay for their lawyer and court costs.

Example

You fixed someone's roof, and they were supposed to pay you the last $1,000 a month ago, but they didn't.

They now have to pay you an extra $20 (2% of $1,000) for being late. If they still don't pay and you take them to court, they might have to pay your lawyer fees too if you win.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 8818 Retention Payment Penalties

If an owner or direct contractor does not make a retention payment within the time required by this article: (a) The owner or direct contractor is liable to the person to which payment is owed for a penalty of 2 percent per month on the amount wrongfully withheld, in place of any interest otherwise due. (b) In an action for collection of the amount wrongfully withheld, the prevailing party is entitled to costs and reasonable attorney’s fees. (Added by Stats. 2010, Ch. 697, Sec. 20. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697 and by Section 8052.)

Last verified: January 21, 2026

Key Terms

retention paymentpenalty of 2 percent per monthamount wrongfully withheldcosts and reasonable attorney’s fees

Related Statutes

  • § 8810 Retention Payment Withholding Rules
  • § 8814 Retention Payment To Subcontractors
  • § 8822 Construction Loan Retention Exemption
  • § 5650 Homeowner Assessment Collection Rules
  • § 5655 Payment Application And Receipts

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Civil Code. Section 8818.
View Official Source