A public entity wants 8 percent retention without a complex-project finding. What issue should be raised?
Correct Answer
D) Five percent cap.
Retention generally may not exceed 5 percent unless a proper complex-project finding supports a higher rate.
Why This Is the Correct Answer
Retention generally may not exceed 5 percent unless a proper complex-project finding supports a higher rate.
Why the Other Options Are Wrong
Option A: Use the agency standard retention percentage without checking the statutory cap or exception.
Use the agency standard retention percentage without checking the statutory cap or exception. skips the written authority, scope, price, notice, or release control needed for retention cap.
Option B: No retention allowed.
No retention allowed. skips the written authority, scope, price, notice, or release control needed for retention cap.
Option C: Private rule.
Private rule. skips the written authority, scope, price, notice, or release control needed for retention cap.
Memory Technique
When not clashes with exceed, let the contract speak before Reviewing Public.
Reference Hint
Study anchor (closed-book): memorize Retention cap from California Public Contract Code public works payment and retention. / California Public Contract Code Section 7201; know the rule or calculation trigger without relying on exam-room lookup.
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