Patscheck

Respondent Morton Engineering & Construction, Inc. (Morton), was hired by appellant Stanley Douglas Patscheck (Patscheck), as a subcontractor on a public works project. Patscheck failed to pay Morton for its work. Morton obtained a judgment that included penalties for failure to pay progress payments and retention proceeds within the time required by Business and Professions Code section 7108.5 and Public Contract Code section 7107.

Patscheck appeals asserting the penalty provision in section 7108.5 can only be awarded in a disciplinary action before the Contractors’ State License Board (CSLB), the trial court miscalculated the interest and penalties, and Morton was not entitled to payment for the extra work.

In the published portion of this opinion we conclude the penalty provision found in section 7108.5 is recoverable in either a disciplinary action before the CSLB or in a civil action filed by the subcontractor. We will affirm the judgment.

Statement of Facts and the Case

El Tejón Unified School District (School District) contracted with Patscheck for what appears to be the construction of a gymnasium and football stadium (Prime Contract). Patscheck hired various…