California Civil Code

§ 8811

CIV § 8811 Effective Jan 1, 2026Div. 4 · Title 2 · Part 6 · Ch. 8 · Art. 2

Statute text

(a)This section is applicable to a contract relating to a private work of improvement entered into on or after January 1, 2026.

(b)(1) (A) 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, for a private work of improvement, shall not exceed 5 percent of the payment.

(B)In no event shall the total retention proceeds withheld exceed 5 percent of the contract price.

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Legislative history

Added by Stats. 2025, Ch. 49, Sec. 1. (SB 61) Effective January 1, 2026.