Michael T. McKeeman | The Construction Seyt Retention has long been a contentious issue in California construction. Traditionally, owners withheld retention of 10% from each progress payment until completion, arguing it was necessary to ensure performance, quality and timely delivery. Contractors and subcontractors, however, often struggled with cash flow, payroll, and material costs while waiting… Continue reading California’s Retention Reform on Private Construction Projects
Tag: Retention
New California Law Caps Retention for Private Construction Projects
John Brucker, Scott Greer and Gregg Jacobson | King & Spalding California has enacted Senate Bill 61 (“SB-61”), a significant piece of legislation that directly impacts owners and developers of private construction projects in the state. Signed into law on July 24, 2025, SB-61 establishes a mandatory cap on retention payments for most private construction… Continue reading New California Law Caps Retention for Private Construction Projects
“Good Faith” May Not Be Good Enough: California Supreme Court to Decide When General Contractors Can Withhold Retention
Erinn Contreras and Joy O. Siu | Construction & Infrastructure Law Blog | March 7, 2018 It is industry standard in California for owners of a construction project to make monthly payments to a contractor for work it has completed, less a certain percentage that is withheld as a guarantee of future satisfactory performance. This… Continue reading “Good Faith” May Not Be Good Enough: California Supreme Court to Decide When General Contractors Can Withhold Retention