{"code":"PCC","codeName":"Public Contract Code","section":"10194","citation":"Pub. Contract Code, § 10194","status":"in-force","lawOn":"2026-09-28","headings":[{"name":"DIVISION 2. GENERAL PROVISIONS [1100. - 22355.]","url":"https://blackletter.si/public-contract-code/division-2"},{"name":"PART 2. CONTRACTING BY STATE AGENCIES [10100. - 19150.]","url":"https://blackletter.si/public-contract-code/division-2/part-2"},{"name":"CHAPTER 1. State Contract Act [10100. - 10285.5.]","url":"https://blackletter.si/public-contract-code/division-2/part-2/chapter-1"},{"name":"ARTICLE 6. State Agency Design-Build Projects [10187. - 10195.]","url":"https://blackletter.si/public-contract-code/division-2/part-2/chapter-1/article-6"}],"history":"Added by Stats. 2014, Ch. 931, Sec. 6.   (SB 785)   Effective January 1, 2015.","effective":"2015-01-01","html":"<p>(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 of bids.</p><p>(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 may 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, 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 department and the design-build entity from any payment made by the design-build entity to the subcontractor.</p>","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 of bids. (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 may 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, 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 department and the design-build entity from any payment made by the design-build entity to the subcontractor.","otherVersions":[],"url":"https://blackletter.si/public-contract-code/state-agency-design-build-projects-10194","source":"California Legislative Information bulk export (pubinfo)"}