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Committee backs cap on retention in public-works contracts to free small contractors' capital
Summary
The subcommittee passed AB 18 85 (recorded as AB 1885 in the hearing) to limit retention on public-works projects to 3.5% with a five-year sunset, with sponsors arguing the change would free working capital for small and mid-sized contractors; contractors and trade groups supported the bill and it was advanced to appropriations.
Assemblymember Carrillo presented AB 18 85 (also recorded as AB 1885), saying the bill would limit retention on public-works contracts to 3.5% and include a five-year sunset so the Legislature can review the change. "Retention effectively guarantees that the contractor does not have access to the free cash…
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