{"code":"PCC","codeName":"Public Contract Code","section":"22167","citation":"Pub. Contract Code, § 22167","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 3. CONTRACTING BY LOCAL AGENCIES [20100. - 22199.6.]","url":"https://blackletter.si/public-contract-code/division-2/part-3"},{"name":"CHAPTER 4. Local Agency Design-Build Projects [22160. - 22169.]","url":"https://blackletter.si/public-contract-code/division-2/part-3/chapter-4"}],"history":"Added by Stats. 2014, Ch. 931, Sec. 14.   (SB 785)   Effective January 1, 2015.   Repealed as of January 1, 2031, pursuant to Section 22169.","effective":"2015-01-01","html":"<p>(a) If the local agency elects to award a project pursuant to this article, retention proceeds withheld by the local agency 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 local agency 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 local agency and the design-build entity from any payment made by the design-build entity to the subcontractor.</p>","text":"(a) If the local agency elects to award a project pursuant to this article, retention proceeds withheld by the local agency 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 local agency 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 local agency 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/local-agency-design-build-projects-22167","source":"California Legislative Information bulk export (pubinfo)"}