If a homeowner files a Notice of Completion, the retention may be held up for how many days?

When a homeowner files a Notice of Completion, the retention can indeed be held for a maximum of 60 days. This legal timeframe is established under California law, which allows a homeowner to retain funds from a construction project pending the resolution of any potential claims or disputes that might arise after the project is completed.

The retention period is significant because it provides a window during which the contractor or subcontractor can address any imperfections or incomplete work. If any issues are identified within this 60-day period, the homeowner has the right to withhold payment until those issues are resolved. Once the retention period expires, unless there are unresolved claims or other legal reasons to hold the funds, the contractor should receive the retained funds promptly.

This retention period is designed to protect the homeowner while ensuring that contractors have clear guidelines on when they can expect to receive the full payment for their work.