CAL.Regulation
California caps retention on public architecture and engineering contracts at 5 percent
SB 1205 (Chapter 424), approved September 20, added Public Contract Code Section 7204, capping retention on design-bid-build contracts and amendments entered on or after January 1, 2027, between a public entity and an architecture or engineering firm at 5 percent. Withheld retention must be released within 60 days after the firm's services are complete, regardless of project completion. Higher retention requires a pre-bid substantially-complex finding.
Enrolled text (California Legislative Information) → · Governor of California
Key points
- State agencies need a department director's pre-bid finding; local entities need a governing-body vote at a noticed public hearing.California Legislative Information
- A substantially-complex finding must describe the project and explain why it is not routinely performed work.California Legislative Information
- 'Public entity' includes the state, CSU, UC, cities and counties, districts, and public authorities.California Legislative Information
- The cap covers individuals and entities permitted to practice architecture or engineering.California Legislative Information
Sources2 articles across 2 outlets
California Legislative Information
Governor of California