2019 California Code
Education Code - EDC
TITLE 1 - GENERAL EDUCATION CODE PROVISIONS
DIVISION 1 - GENERAL EDUCATION CODE PROVISIONS
PART 10.5 - SCHOOL FACILITIES
CHAPTER 2.5 - Design-Build Contracts
Section 17250.40.

(a) If the school district elects to award a project pursuant to this chapter, retention proceeds withheld by the school district from the design-build entity shall not exceed 5 percent.

(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 school district 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 school district and the design-build entity from any payment made by the design-build entity to the subcontractor.

(Repealed (in Sec. 1) and added by Stats. 2015, Ch. 752, Sec. 2. (AB 1358) Effective January 1, 2016. Section operative July 1, 2016, pursuant to Section 17250.50. Repealed as of January 1, 2025, pursuant to Section 17250.55.)