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California’s New Retention Cap Squeezes Construction Cash Flow—And Not Everyone Sees It Coming

December 22, 20252 Mins read1.3k
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A new law slashing payment holdbacks promises relief for contractors but could catch owners off guard in 2026 When California Senate Bill 61 takes effect on Jan. 1, it will cut the maximum retention rate on most private commercial construction projects in half—from 10 percent to 5 percent. The change is designed to ease cash […]

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