CA SB629

Caps retention proceeds withheld by owners from original contractors at 5% of each payment, with a total cap of 5% of the entire contract price for contracts entered into on or after January 1, 2010.

Limits retention proceeds withheld by contractors from subcontractors to the lesser of 5% of payment due or the percentage the owner can withhold from the original contractor.

Requires all withheld retention proceeds to be released within 45 days after the party seeking payment submits a fully executed "Conditional Waiver and Release Upon Final Payment" form, once their work is complete.

Prohibits parties from requiring waiver of these retention provisions and preserves the right to withhold funds in bona fide disputes under existing law.

Exempts projects where the owner or original contractor provides written notice before bid request that performance and payment bonds may be required and the contractor cannot or refuses to obtain them.