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TITLE 1. GENERAL EDUCATION CODE PROVISIONS 1-32527›DIVISION 1. GENERAL EDUCATION CODE PROVISIONS 1-32527›PART 10.5. SCHOOL FACILITIES 17210-17672›CHAPTER 2.6. Alternative Design-Build Contracts 17250.60-17250.69

§ 17250.66

California Education Code · 2026-09 edition · updated 2026-10-03 · California

(a) If the school district elects to award a project pursuant to this chapter, retention proceeds withheld by the school district from the design-build entity shall not exceed 5 percent.

(b) In a contract between the design-build entity and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld may not exceed the percentage specified in the contract between the school district agency and the design-build entity. If the design-build entity provides written notice to any subcontractor that is not a member of the design-build entity, before 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 school district and the design-build entity from any payment made by the design-build entity to the subcontractor.

(Added by Stats. 2022, Ch. 571, Sec. 14. (AB 185) Effective September 27, 2022. Repealed as of January 1, 2029, pursuant to Section 17250.69.)

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