Brian G. Corgan | Kilpatrick Townsend & Stockton Effective January 1, 2026, two groundbreaking California statutes will significantly impact private construction contracts executed after this date. The first, California Civil Code § 8811, imposes a strict five percent (5%) cap on retainage for most private projects, fundamentally changing the longstanding practice of parties negotiating retainage… Continue reading New California Statutes Reshape Retainage and Payment Practices in Private Construction Contracts
Tag: California Prompt Payment Act
California Expands 5 Percent Retainage Cap to Private Construction Projects
Connor Cafferty, Joe Watson and Alan J. Watson | Holland & Knight Recent updates to California law impose new limitations on retainage for private construction projects. Under the updated California Prompt Payment Act, retainage on private works is now capped at 5 percent of the contract price.1 This statutory cap carries meaningful enforcement mechanisms. If… Continue reading California Expands 5 Percent Retainage Cap to Private Construction Projects