SACRAMENTO –  At a critical time as the state of California scrambles to build more privately financed affordable housing, and eventually rebuild from the devastation caused by fires in Southern California, state Senator Dave Cortese (D-Silicon Valley) today introduced Senate Bill 61 – the Private Works of Improvement Contracts: Retention – that would expedite payment of money due to construction contractors and subcontractors for work performed.

“This will help small business owners and minority contractors working on private projects keep the cash flow going for materials and labor just like its public works counterparts,” said California State Senator Dave Cortese, a longtime advocate for labor.

Here is a link to Senate Bill 61:

• Instead of withholding 10 percent of progress payments for private projects, Senate Bill 61 allows a contractor or subcontractor to make a formal written offer to carry out work through a retainage bond not to exceed five percent of the money earned by the contractor.
• More than 20 states including Oregon, Nevada and New York have also signed into law five percent retention caps for private projects.
• In California, recent legislation is making it easier for privately financed affordable housing developments to move forward. The makes SB 61 even more critical.

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