Section 70398.6.
Cal. Government Code - GOV § 70398.6.
in effect(a)
If the Judicial Council elects to award a project pursuant to this article, retention proceeds withheld by the Judicial Council from the design-build entity shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids.
(b)
In a contract between the design-build entity and a subcontractor, and in a contract between a subcontractor and a subcontractor thereunder, the percentage of the retention proceeds withheld may not exceed the percentage specified in the contract between the Judicial Council and the design-build entity. If the design-build entity provides written notice to a subcontractor that is not a member of the design-build entity, prior to or at the
time the bid is requested, that a bond may be required and the subcontractor subsequently is unable or refuses to furnish a bond to the design-build entity, then the design-build entity may withhold retention proceeds in excess of the percentage specified in the contract between the Judicial Council and the design-build entity from any payment made by the design-build entity to the subcontractor.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026