SB 1192 - State Allows Architectural and Engineer Consultants to Use Escrow Accounts for Retention
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SB 1192 – State Allows Architectural and Engineer Consultants to Use Escrow Accounts for Retention

Jan 05, 2023

SB 1192 now allows Architectural & Engineer Consultants, including landscape architectural, environmental, and land surveying services, construction project management professionals, to substitute securities as an alternative to retention through use of an escrow account. General Contractors have had the option to deposit securities with an escrow agent as a substitute for retention earnings being withheld by a public agency owner or have the public agency owner pay the escrow agent directly. This change in law now extends this benefit to consultants working on public works projects. This bill becomes effective January 1, 2023.