California SB1205 limits retention payments for architecture and engineering services in public contracts.

California SB1205 amends the Public Contract Code to limit retention payments for architecture and engineering services in public contracts. Retention payments for services under design-bid-build contracts cannot exceed 5 percent of the payment. However, for substantially complex projects, retention amounts can exceed 5 percent if approved by the department director or the public entity's governing body. These findings must be made prior to the bid and detailed in the bid documents.

California SB1205 limits retention payments for architecture and engineering services in public contracts.

California SB1205 amends the Public Contract Code to limit retention payments for architecture and engineering services in public contracts. Retention payments for services under design-bid-build contracts cannot exceed 5 percent of the payment. However, for substantially complex projects, retention amounts can exceed 5 percent if approved by the department director or the public entity's governing body. These findings must be made prior to the bid and detailed in the bid documents.