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Existing law generally governs retention payments withheld with respect to a contract for a private work of improvement, including by requiring an owner that withholds a retention from a direct contractor to, within 45 days after completion of the work of improvement, pay the retention to the contractor. With respect to a contract for a private work of improvement, this bill would limit the amount of a retention payment by, among other things, prohibiting a retention payment withheld from a payment by an owner from the direct contractor, by the direct contractor from any subcontractor, and by a subcontractor from any subcontractor thereunder, from exceeding 5% of the payment, subject to certain exceptions. The bill would require a court to award reasonable attorney's fees to the prevailing party in any action to enforce these provisions.
Introduced
Jan 9, 2025
Last Action
Jul 14, 2025
Session
CA 20252026
Sponsors
1 primary · 0 co
Chaptered by Secretary of State. Chapter 49, Statutes of 2025.
Approved by the Governor.
Enrolled and presented to the Governor at 11:15 a.m.
In Senate. Ordered to engrossing and enrolling.
Read third time. Passed. (Ayes 71. Noes 0. Page 2247.) Ordered to the Senate.
Read second time. Ordered to consent calendar.
From committee: Do pass. Ordered to consent calendar. (Ayes 11. Noes 0.) (June 17).
Referred to Com. on JUD.
In Assembly. Read first time. Held at Desk.
Read third time. Passed. (Ayes 37. Noes 0. Page 887.) Ordered to the Assembly.
Read second time. Ordered to consent calendar.
From committee: Do pass. Ordered to consent calendar. (Ayes 13. Noes 0. Page 705.) (April 8).
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
Set for hearing April 8.
Referred to Com. on JUD.
From printer. May be acted upon on or after February 9.
Introduced. Read first time. To Com. on RLS. for assignment. To print.
Get a plain-English explanation of what this bill does, who it affects, and why it matters.
Chaptered by Secretary of State. Chapter 49, Statutes of 2025.