New California Law Imposes a Five Percent Cap on Retention for Private Works of Improvement

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 … Continue reading New California Law Imposes a Five Percent Cap on Retention for Private Works of Improvement