§ 10198.6. — 10198.6. (Added by Stats. 2021, Ch. 77, Sec. 26.)

California § 10198.6.

• Jurisdiction: California
• Code PCC: Public Contract Code - PCC
• Div. 2.: DIVISION 2. GENERAL PROVISIONS
• Part 2.: PART 2. CONTRACTING BY STATE AGENCIES
• Ch. 1.: CHAPTER 1. State Contract Act
• Art. 6.5.: ARTICLE 6.5. Department of Water Resources Design-Build Projects

Text

(a)
If the department elects to award a project pursuant to this article, retention proceeds withheld by the department 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. Work performed to establish the guaranteed maximum price shall not be subject to retention.
(b)
In a contract between the design-build entity and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld shall not exceed the percentage specified in the contract between the department and the design-build entity. If the design-build entity provides written notice to any
subcontractor that is not a member of the design-build entity, before 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 department and the design-build entity from any payment made by the design-build entity to the subcontractor.

Legislative History

Added by Stats. 2021, Ch. 77, Sec. 26. (AB 137) Effective July 16, 2021.