Legislative Corner
Support UCON Sponsored Bill to Cap Payment Retention at 5% for Private Works
UCON is taking the lead on a crucial bill that will improve cash flow for contractors working on private construction projects. SB 61 proposes a 5% cap on retention payments for Private Works contracts—aligning with Public Works standards, which UCON championed, and reducing financial strain on contractors, particularly small businesses.
The Senate Judiciary Committee will soon consider SB 61, and your voice is essential in ensuring its passage. Please take a moment to email the committee members and urge their support for SB 61.
Over 20 other states have adopted similar caps, demonstrating that fair retention policies work. SB 61 will:
- Improve cash flow for contractors, ensuring timely payments to workers and suppliers.
- Reduce reliance on costly credit lines, lowering project costs.
- Create fairness by aligning private and public construction standards.
Support SB 61 to improve conditions for contractors on private work.
For questions or to get involved contact Gus Flores, UCON Director of Government Relations, (916) 347-6849.
