Legislature Caps Retention Amount at 5% for Many Private Works Projects!

In one of the most significant legislative moves in favor of construction contractors in decades, the Governor signed SB 61 into law on July 14, 2025. For new contracts after January 1, 2026, and with limited exceptions, the new law reduces the amount by which contractors may be forced to help finance private works construction by limiting to 5% the amount that owners, contractors, and subcontractors may withhold from progress payments to subcontractors until the end of the project. Read more.


Daniel F. McLennon
Partner
San Francisco Bay Area
T: 510.903.2001
E: dfmclennon@smithcurrie.com