Part two of Cari’s Legal Exchange covers the shift from civil forfeiture to criminal prosecution, the impact of U.S. sanctions on Mexican cartels, and the expanding risk for companies in various industries.

Starting in 2026, California will cap retention in private construction contracts at 5%, matching public works standards. The rule excludes non-mixed-use residential projects under four stories and applies across all contractor-subcontractor levels. Lower retention rates for direct contractors will extend to subcontractors. Advocates say that the cap will ease financial strain, especially for smaller firms. Owners may respond with stricter bonding requirements, potentially raising construction costs due to reduced protection against non-performance.

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