CA AB2173

Removes the January 1, 2023 expiration date from provisions allowing retention of more than 5% on complex public works projects, making these provisions permanent.

Allows state departments to withhold more than 5% on projects when the director makes a pre-bid finding that the project is substantially complex and includes this finding and retention amount in bid documents.

Allows local public entities (cities, counties, districts) to withhold more than 5% when the governing body or designee approves a finding during a public hearing prior to bid that the project is substantially complex, with details included in bid documents.

Requires any finding of substantial complexity to describe the specific project and explain why it is unique and not regularly or routinely performed by the agency or licensed contractors.

Applies retention limits to all payment withholding by public entities from contractors, contractors from subcontractors, and subcontractors from lower-tier subcontractors.