What is the retainage cap in California?

On public work the planning cap is 5%. On private work it is 5% (SB 61, contracts on/after Jan 1, 2026). Bid documents and the subcontract still control if they are stricter.

When is retainage released in California?

Public jobs typically release 60 days after completion. Private jobs: 45 days after completion. Confirm the contract date — several states changed caps in 2025–2026.

How fast must a prime pay a sub in California?

7 days after the prime is paid. Owner or agency to prime is 30 days after a proper invoice (private, Civ. Code § 8800). Late-pay interest: 2% per month if retainage is over 5% or late (private).

California · CA

California retainage law and prompt-payment rules

SB 61 capped private retainage at 5%. Do not sign a 10% clause on a 2026 private contract. Start in the code: Cal. Civ. Code §§ 8800, 8812, 3260; Pub. Cont. Code § 7201.

Use this page when you are bidding or billing a job in California. Public retainage is listed as 5%; private as 5% (SB 61, contracts on/after Jan 1, 2026). Typical public release is 60 days after completion.

Then open the retainage calculator for the dollars, or the G702-style pay application if you need line-by-line previous certificates.

California SB 61 and the 5% private cap

California private retainage changed. SB 61 caps retainage at 5% on private contracts entered into on or after January 1, 2026. A 10% clause on a 2026 private job is the wrong starting point. Public work was already in the 5% neighborhood (Pub. Cont. Code § 7201).

Private release is typically 45 days after completion; public about 60 days. Interest can reach 2% per month if retainage is over the cap or late. Prime-to-sub pass-through is 7 days after the prime is paid on many jobs.

If the subcontract still says 10% on a post-2026 private California job, flag it before you mobilize. Then bill the 5% in the calculator so Line 5 matches the statute, not last year’s habit.

Statute text: Cal. Civ. Code § 8812. Confirm the current code before you rely on a date.

Where is the job?

State and project type drive retainage caps and payment clocks

State

Project type

Caps and clocks change with project type, contract value, and the year you signed. Planning table only — confirm the current statute before you rely on a date.

California — private work

Retainage cap5% (SB 61, contracts on/after Jan 1, 2026)

Typical retainage release45 days after completion

Interest / penalty2% per month if retainage is over 5% or late (private)

Owner / agency to prime30 days after a proper invoice (private, Civ. Code § 8800)

Prime to sub (after prime paid)7 days after the prime is paid

Start in the codeCal. Civ. Code §§ 8800, 8812, 3260; Pub. Cont. Code § 7201

SB 61 capped private retainage at 5%. Do not sign a 10% clause on a 2026 private contract.

Summaries compiled for planning. This site is not a law firm.

Run the retainage dollars

Questions this page answers

What is the retainage cap in California?: On public work the planning cap is 5%. On private work it is 5% (SB 61, contracts on/after Jan 1, 2026). Bid documents and the subcontract still control if they are stricter.
When is retainage released in California?: Public jobs typically release 60 days after completion. Private jobs: 45 days after completion. Confirm the contract date — several states changed caps in 2025–2026.
How fast must a prime pay a sub in California?: 7 days after the prime is paid. Owner or agency to prime is 30 days after a proper invoice (private, Civ. Code § 8800). Late-pay interest: 2% per month if retainage is over 5% or late (private).

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