Government Code section 70398.6
(a)
If the Judicial Council elects to award a project pursuant to this article, retention proceeds withheld by the Judicial Council 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 a subcontractor thereunder, the percentage of the retention proceeds withheld may not exceed the percentage specified in the contract between the Judicial Council and the design-build entity. If the design-build entity provides written notice to a 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 Judicial Council and the design-build entity from any payment made by the design-build entity to the subcontractor.
Source:
Section 70398.6, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV§ionNum=70398.6. (accessed Apr. 24, 2025).