Public agencies can withhold no more than 5% from architect and engineer payments
On design-bid-build contracts signed directly with architecture or engineering firms, public agencies may hold back no more than 5% of each payment as retention, unless a complex project justifies more. Retention must be released within 60 days after the firm finishes its services.
Who it affects
Architecture and engineering firms, and public agencies that hire them
When
This law takes effect on January 1, 2027. California laws take effect on January 1 of the year after they are signed, unless the law says otherwise.
- : Signed into law
- : This law takes effect
Official text
California SB 1205: Public contracts: retention: architecture or engineering services.
On California Legislative Information. The official text is what counts; read it before you act.
Not legal advice. Plain-English summaries to help you find what changes and when. Not legal advice: read the official text, and ask a lawyer about your situation.