New law caps retention on public works projects at 5%
On October 9, 2011, Governor Brown signed SB 293 in to law. SB 293 addressed a variety of issues in public works related statutes, including prompt payment periods between a prime contractor and subcontractor, procedures for filing 20-day preliminary notices, and procedures for making claims on payment bonds. Most noteworthy, however, is the adoption of a new Public Contract Code section 7201 which caps retention of progress payment for all public works projects at 5%.
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