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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

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