Governor Signs AB 2173 Making 5% Public Works Retention Permanent
MCACA2024-06-15T00:41:41-07:00On July 19, 2022, Governor Gavin Newsom signed AB 2173 thereby making permanent the 5% retention cap on public projects originally enacted by SB 93 in 2011. MCAC requested the Governor's signature in a July 12, 2022 letter. Background: SB 293 (2011) capped public works retentions at 5% (from 10%) until January 1, 2016 and reduced the timeline of private and public progress payments from 10 to 7 days (no sunset date on the progress payments timeline). Then, AB 1705 (2014) came along and extended the public works 5% maximum retention withholding until January 1, 2018. Later, AB 92 (2017) [...]





