SB-1205 • 2026

Public contracts: retention: architecture or engineering services.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Valladares
Last action: 2026-06-10
Official status: From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 18. Noes 0.) (June 10). Re-referred to Com. on APPR.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Public contracts: retention: architecture or engineering services.

SB 1205, as amended, Valladares.

What This Bill Does

SB 1205, as amended, Valladares.
Public contracts: retention: architecture or engineering services.
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.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-06-10 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 18. Noes 0.) (June 10). Re-referred to Com. on APPR.
2026-06-01 California Legislative Information
Referred to Com. on G.O.
2026-05-22 California Legislative Information
In Assembly. Read first time. Held at Desk.
2026-05-22 California Legislative Information
Read third time. Passed. (Ayes 33. Noes 0.) Ordered to the Assembly.
2026-05-20 California Legislative Information
Ordered to special consent calendar.
2026-05-14 California Legislative Information
Read second time. Ordered to third reading.
2026-05-14 California Legislative Information
From committee: Do pass. (Ayes 7. Noes 0.) (May 14).
2026-05-08 California Legislative Information
Set for hearing May 14.
2026-05-04 California Legislative Information
May 4 hearing: Placed on APPR. suspense file.
2026-04-24 California Legislative Information
Set for hearing May 4.
2026-04-22 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 7. Noes 0. Page 4015.) (April 22). Re-referred to Com. on APPR.
2026-04-14 California Legislative Information
From committee: Do pass and re-refer to Com. on L. GOV. with recommendation: To consent calendar. (Ayes 15. Noes 0. Page 3866.) (April 14). Re-referred to Com. on L. GOV.
2026-04-14 California Legislative Information
Set for hearing April 22 in L. GOV. pending receipt.
2026-04-09 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on G.O.
2026-04-09 California Legislative Information
Set for hearing April 14.
2026-04-08 California Legislative Information
Re-referred to Coms. on G.O. and L. GOV.
2026-03-24 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
2026-03-04 California Legislative Information
Referred to Com. on RLS.
2026-02-20 California Legislative Information
From printer. May be acted upon on or after March 22.
2026-02-19 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 1205, as amended, Valladares.
Public contracts: retention: architecture or engineering services.
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 of payment
retention payments from exceeding 5% of the payment
for
all contracts,
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.
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.”

Current Bill Text

Read the full stored bill text

Download Bill PDF