Most private construction contracts executed on or after January 1, 2026, must limit progress payment retention to five percent or less under a new law that goes into effect on the first of the year in California. This requirement applies to retention withheld by an owner from the direct contractor, by the direct contractor from any subcontractor, and by any subcontractor from any lower-tier subcontractor.
Subcontractor Default Insurance (SDI) is marketed as a substitute for a subcontractor performance bond, providing coverage for a prime contractor’s losses due to a subcontractor’s failure to perform on a project. In a recent article for the American Bar Association, colleagues Michael S. McNamara and Lexie R. Pereira dispel a common misconception regarding whether a subcontractor must be declared in default to trigger SDI coverage under several common policy forms.
To read “The Silent ‘D’ in SDI: Subcontractors May Not Need to be Notified of Default for Prime Contractors to Receive Subcontractor Default Insurance Coverage,” click here.
Having your Contractor’s License up and running to perform work when needed, where needed, is an indispensable compliance matter that contractors face every year. However, this indispensable process may also be cumbersome and time consuming. Knowing the regulations applicable to your business in each state and what to do, how to do it, and when to do it, is of critical importance to maintain compliance and your ability to work in different states.
In this post we will do a high-level review of reporting obligations in California and Louisiana.
In Biden Administration Proposes Significant Increases to Buy American Domestic Content Requirements – Takeaways for Contractors and Subcontractors, colleagues Nancy A. Fischer, Stephan E. Becker, David B. Dixon, Marques O. Peterson, Benjamin J. Cote and Moushami P. Joshi provide the key takeaways derived from proposed changes affecting the construction industry.
Gravel2Gavel Construction & Real Estate Law Blog