Florida General Contractor Practice Exam

According to AIA 401, within how many days must the general contractor pay the subcontractor after receiving payment from the owner?

1. 7 days

2. 10 days

3. 15 days

4. 30 days

The correct answer is: 10 days

The correct answer of 10 days is based on the stipulations outlined in the AIA Document A401, which governs the relationship between contractors and subcontractors. According to this document, a general contractor is required to pay subcontractors within 10 days after receiving payment from the owner. This provision is important as it ensures that subcontractors are compensated in a timely manner for their work, promoting fairness and maintaining cash flow within the construction project. The context of this timeframe is significant in the construction industry's contractual obligations, as it establishes a clear expectation for monetary transactions. Adhering to this timeline helps prevent disputes and fosters good working relationships among all parties involved in a construction project. It reinforces the importance of prompt payment practices, which are essential for subcontractors, many of whom rely on timely payments to manage their own financial obligations.