CA AB2390

Reduces the payment deadline for prime contractors and subcontractors to subcontractors from 10 days to 7 days after receipt of each progress payment, with exceptions for good faith disputes.

Changes the notice requirement for enforcing claims against payment bonds on public works contracts entered into on or after January 1, 2011, requiring written notice to surety and bond principal prior to project completion or notice of completion recordation instead of within 15-75 days after.

Caps retention proceeds withheld on public works contracts at 5% of each payment (until January 1, 2015) for contracts entered into on or after January 1, 2011, with exceptions for substantially complex projects approved prior to bid.

Increases the maximum progress payment for state department contracts from 95% to 100% of actual work completed and materials delivered, and changes the minimum withholding from "not less than 5%" to "not more than 5%" of contract price (until January 1, 2015).

Reinstates the original 95% progress payment limit and 5% minimum withholding requirement effective January 1, 2015, with exceptions for substantially complex projects approved by department directors.