{"data":{"id":"us-ca/edc-17250.40","jurisdiction":"us-ca","citation":"EDC § 17250.40","heading":"","body":"(a) If the school district elects to award a project pursuant to this chapter, retention proceeds withheld by the school district from the design-build entity shall not exceed 5 percent.\n(b) In a contract between the design-build entity and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld may not exceed the percentage specified in the contract between the school district agency and the design-build entity. If the design-build entity provides written notice to any subcontractor that is not a member of the design-build entity, prior to or at the time the bid is requested, that a bond may be required and the subcontractor subsequently is unable or refuses to furnish a bond to the design-build entity, then the design-build entity may withhold retention proceeds in excess of the percentage specified in the contract between the school district and the design-build entity from any payment made by the design-build entity to the subcontractor.","path":["Education Code - EDC","TITLE 1. GENERAL EDUCATION CODE PROVISIONS [1. - 32527.]","DIVISION 1. GENERAL EDUCATION CODE PROVISIONS [1. - 32527.]","PART 10.5. SCHOOL FACILITIES [17210. - 17672.]","CHAPTER 2.5. Design-Build Contracts [17250.10. - 17250.52.]"],"source_url":"https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zip","current_through":"2026-09-13","vintage":"","retrieved_at":"2026-09-14T05:56:33Z","sha256":"160d763429242aa8a9a4d5daa4fc11e8f8095c73aca839856b688de4056a8161","source_id":"us-ca","stale":false,"prev":"us-ca/edc-17250.35","next":"us-ca/edc-17250.45"},"notice":"GroundRules: Original legal text. Not legal advice."}