CA Pub Cont Code Section 20209.9

If the governing body of a transit operator elects to award a transit capital project through the design-build selection process pursuant to this article, all of the following apply:


The retention proceeds withheld by the transit operator from the design-build entity listed at the time of bid shall not exceed 5 percent.


The transit operator shall not withhold retention from payments to the design-build entity for actual costs incurred and billed for design services, construction management services, or where applicable, for completed operations and maintenance services.


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 transit operator and the design-build entity. If the design-build entity provides written notice to any subcontractor who is not a member of the design-build entity, prior to or at the time that 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 transit operator and the design-build entity from any payment made by the design-build entity to the subcontractor.


In accordance with the provisions of applicable state law, the design-build entity may be permitted to substitute securities in lieu of the withholding from progress payments specified in subdivision (b). Substitutions shall be made in accordance with Section 22300 of the Public Contract Code.


Upon request, the transit operator shall provide a list of parties who have requested a bid package.
Last Updated

Aug. 19, 2023

§ 20209.9’s source at ca​.gov