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California Private Construction Retention Cap

Sector: Residential • Location: California, United States

Source: Foley & Lardner LLP

Project
Planned

Senate Bill 61 mandates a 5% retention cap on most private construction projects in California, effective January 1, 2026. This law limits the amount of payment that can be withheld as retention to 5% of the contract price, replacing the traditional 10% retainage practice. The cap applies to owners, contractors, and subcontractors, with specific exemptions for certain residential projects and subc

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The project “California Private Construction Retention Cap” is an infrastructure initiative in the Residential sector, located in California, United States. Taiyo aggregates data on it from Foley & Lardner LLP.

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Participants

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planned

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Description

Description

Senate Bill 61 mandates a 5% retention cap on most private construction projects in California, effective January 1, 2026. This law limits the amount of payment that can be withheld as retention to 5% of the contract price, replacing the traditional 10% retainage practice. The cap applies to owners, contractors, and subcontractors, with specific exemptions for certain residential projects and subcontractors without required bonds.

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Source

Source reliability

High

Data quality score

100%

Source

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URL

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