Kendall Woods | Buchalter California passed Senate Bill 61 (SB 61), a new law intended to help ease financial risk for contractors and subcontractors on private construction projects. With the passage of SB 61, signed into law by Governor Gavin Newsom on July 14, 2025, retention practices for private construction projects will undergo a significant… Continue reading Effective January 1, 2026 California SB 61 Caps Retention at 5% on Private Construction Projects
Tag: Senate Bill 61
New 5% Retention Cap for California Private Projects: Key Impacts for Contracting Parties
Allison B. Etkin | Akerman Effective January 1, 2026, California will implement significant changes to private construction payment practices. Joining nine other states, Senate Bill 61, signed by Governor Gavin Newsom on July 14, 2025, amends California’s Prompt Payment Statute to establish a mandatory 5% cap on retention for private construction contracts. Until now, California law… Continue reading New 5% Retention Cap for California Private Projects: Key Impacts for Contracting Parties