SB 1205: Public contracts: retention: architecture or engineering services.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law imposes various requirements regarding the formation, content, and enforcement of public works contracts. Existing law generally requires that retention proceeds withheld from payment by a public entity be released within 60 days after the date of completion of the work of improvement, except as specified in case of a dispute. Existing law limits the allowable amount of retention proceeds withheld in a contract between a public entity and the original contractor, a contract between the original contractor and a subcontractor, and a contract between subcontractors, as specified. Existing law defines “public entity” differently for these various purposes.

This bill would prohibit any retention payments from exceeding 5% of the payment for contracts under design-bid-build, and amendments thereto, entered into on or after January 1, 2027, directly between a public entity and an individual or legal entity permitted by law to practice the profession of architecture or engineering, except for specific projects where, among other things, a finding has been made that the project is substantially complex and requires a higher retention amount. The bill would require any retention withheld to be released no later than 60 days after completion of services under contract. The bill would define terms for its purposes, including “public entity.”

Sponsors

Sponsors by party (alphabetical): Republican 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 20, 2026Chaptered by Secretary of State. Chapter 424, Statutes of 2026.
2. September 20, 2026Chaptered by Secretary of State. Chapter 424, Statutes of 2026.
3. September 20, 2026Approved by the Governor.
4. September 20, 2026Approved by the Governor.
5. September 3, 2026Enrolled and presented to the Governor at 3 p.m.
6. September 3, 2026Enrolled and presented to the Governor at 3 p.m.
7. August 27, 2026Assembly amendments concurred in. (Ayes 40. Noes 0. Page 5997.) Ordered to engrossing and enrolling.
8. August 27, 2026Assembly amendments concurred in. (Ayes 40. Noes 0.) Ordered to engrossing and enrolling.
9. August 26, 2026In Senate. Concurrence in Assembly amendments pending.
10. August 26, 2026In Senate. Concurrence in Assembly amendments pending.
11. August 26, 2026Read third time. Passed. (Ayes 78. Noes 0. Page 6613.) Ordered to the Senate.
12. August 26, 2026Read third time. Passed. (Ayes 78. Noes 0. Page 6613.) Ordered to the Senate.