West Contra Costa Unified School District Complying with SB 293:. How do Districts retain more than 5% of the Contract Price for Retention? Presenter: Deidree Sakai. What is SB 293?. - PowerPoint PPT Presentation
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West Contra Costa Unified School District
Complying with SB 293:How do Districts retain more than 5% of the
•Senate Bill No. 293 (Padilla) amends statutes relating to retention, prompt payment requirements for general contractors, notice by claimants on payment bonds on contracts entered into after January 1, 2012.
•SB 293 sunsets on January 1, 2016, unless extended by the legislature.
•5% retention on public works projects─ Retention proceeds in excess of 5% of the
progress payment/contract price are prohibited except under specified conditions. (Pub. Contract Code, § 7201.)
─ Existing law provides that the percentage of retention proceeds withheld cannot exceed the percentage specified in the contract between the public entity and the original contractor.
Complying with the Conditions for Retention Exceeding 5%
Retention may exceed 5% on specific projects where the governing body of the local public entity, or its designee, has approved or ratified by a majority vote during a properly noticed and normally scheduled public hearing prior to bid that the project is substantially complex and therefore requires a higher retention amount than 5%, and includes this finding and the actual retention amount in the bid documents. (See Pub. Contract Code, § 7201(b)(4).)