Wednesday, 2026-05-27 — Stop Losing Money on Retention Now

A California contractor finished a $380,000 job, waited 90 days for final payment, and lost $22,000 because he didn’t know two new laws changed everything for contractors.

SB 61 and SB 440 went into effect January 1st, 2026.

Retention on private projects is now capped at 5%. Owners can no longer hold 10% indefinitely.

If you’re not paid within the required timeframe, you can now charge 2% monthly interest and legally suspend work without losing your contract.

Most California contractors have no idea this protection exists.

They’re still accepting illegal contract terms. Still waiting 120+ days for retention. Still financing projects the owner should be paying for.

If you’re doing commercial, multifamily, or private construction work in California over $400K, read these laws now.

The money you’re owed isn’t a favor. It’s the law.

Free Construction Profit Leak Assessment:

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Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.