California AB1885 modifies retention proceeds for public works contracts, limiting them to 3.5 percent and requiring state agencies to notify the.

California AB1885 amends the Public Contract Code by repealing and replacing Section 6106.5. It limits the retention proceeds withheld by state agencies on public works contracts to 3.5 percent of the payment. The bill also mandates that state agencies notify the appropriate policy committees of the Legislature if their best interests are compromised due to the non-withholding of retention. This change applies to all public works contracts awarded after January 1, 2027, and the provisions will remain in effect until January 1, 2032.

California AB1885 modifies retention proceeds for public works contracts, limiting them to 3.5 percent and requiring state agencies to notify the.

California AB1885 amends the Public Contract Code by repealing and replacing Section 6106.5. It limits the retention proceeds withheld by state agencies on public works contracts to 3.5 percent of the payment. The bill also mandates that state agencies notify the appropriate policy committees of the Legislature if their best interests are compromised due to the non-withholding of retention. This change applies to all public works contracts awarded after January 1, 2027, and the provisions will remain in effect until January 1, 2032.