Cal. Codes » Public Contract Code / DIVISION 2. GENERAL PROVISIONS / PART 2. CONTRACTING BY STATE AGENCIES / CHAPTER 1. State Contract Act / ARTICLE 8. Modifications; Performance; Payment
California Codes

Cal. Public Contract Code § 10262 (2026)

Modifications; Performance; Payment

✓ leginfo export of Sept. 26, 2026 (applied Oct. 1, 2026)
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The contractor shall pay to his or her subcontractors, within seven days of receipt of each progress payment, the respective amounts allowed the contractor on account of the work performed by his or her subcontractors, to the extent of each subcontractor’s interest therein. The payments to subcontractors shall be based on estimates made pursuant to Section 10261. Any diversion by the contractor of payments received for prosecution of a contract, or failure to reasonably account for the application or use of the payments constitutes ground for actions prescribed in Section 10253, in addition to disciplinary action by the Contractors’ State License Board. The subcontractor shall notify, in writing, the Contractors’ State License Board and the department of any payment less than the amount or percentage approved for the class or item of work as set forth in Section 10261.

Notes of Decisions
Cited in 2 cases (2 in the last 5 years), 2022–2023 · leading case: Morrow-Meadows Corp. v. Honeywell Int'l Inc., No. 2:22-cv-05716 (C.D. Cal. Oct. 24, 2022).
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Morrow-Meadows Corp. v. Honeywell Int'l Inc., No. 2:22-cv-05716 (C.D. Cal. Oct. 24, 2022). “The next two 20 statutes, California Public Contract Code Sections 10262 21 and 10262.”
Morrow-Meadows Corp. v. Honeywell Int'l Inc., No. 2:22-cv-05716 (C.D. Cal. Mar. 13, 2023). “The next two 20 statutes, California Public Contract Code Sections 10262 21 and 10262.”
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