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Apr. 8, 2026

State's new construction laws are changing private contracts

California's new 2026 construction laws limit retentions on private projects and create a structured claims process to speed payments and reduce disputes.

Marina Manoukian

Clark Hill PLC

Marina Manoukian's practice focuses on civil litigation including business, real estate and construction litigation, as well as family law litigation at Clark Hill PLC.

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State's new construction laws are changing private contracts
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As of Jan. 1, 2026, two important changes to California construction law went into effect impacting private construction projects.

Limitation on retentions in private residential projects (Civil Code § 8811)

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