Builders’ Blog

As 2013 winds to an end, it’s once again time to review a couple of the newer laws in construction:

Changes regarding ADA accessibility:  Beginning in July 1, 2013, California commercial leases and rental agreements must include a disclosure regarding whether the property being leased has been inspected by a Certified Access Specialist (CASp) and, if a CASp inspection has occurred, whether the property being leased has met all construction-related accessibility standards under current law.  A CASp refers to any person who has been certified pursuant to Section 4459.5 of the California Government Code.

Changes regarding Retention Fees:  Retention is a tool that allows a project owner to withhold some payment to contractors until the entire project is complete and a certificate of completion or certificate of occupancy has been granted by the local authorities. In the past, the “normal” retention fee for contractor’s work was approximately 10%. The new law, California Public Contract Code Section 7201, provides new limits on retention, including five percent of any payment and an overall cap on total retention of five percent of the contract price.

Make sure you check the State of California website:  www.bsc.ca.gov for all the new laws that affect your particular business.

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