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        "title": "Act 193 of 2009 (SB 302), § 10, amending Ark. Code § 22-9-604(a), Arkansas General Assembly",
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        "title": "Act 471 of 2007 (HB 2585), § 3, Ark. Code § 22-9-604 escrow and 30-day release, Arkansas General Assembly (archived)",
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        "id": "az-0",
        "title": "A.R.S. § 32-1181 (definitions; applicability), Arizona State Legislature",
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        "id": "az-1",
        "title": "A.R.S. § 32-1182 (progress payments by owner; conditions; interest), Arizona State Legislature",
        "url": "https://www.azleg.gov/ars/32/01182.htm",
        "retrievedAt": "2026-09-22",
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        "id": "az-2",
        "title": "A.R.S. § 32-1183 (performance and payment by contractor, subcontractor or material supplier), Arizona State Legislature",
        "url": "https://www.azleg.gov/ars/32/01183.htm",
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        "id": "az-3",
        "title": "A.R.S. § 41-2576 (contract payment retention; partial payment), Arizona State Legislature",
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        "retrievedAt": "2026-09-22",
        "type": "statute"
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        "id": "az-4",
        "title": "A.R.S. § 34-221 (contract with successful bidder; payments; security), Arizona State Legislature",
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        "id": "ca-0",
        "title": "Cal. Civ. Code § 8810, California Legislative Information",
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        "id": "ca-4",
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        "title": "Cal. Pub. Contract Code § 7107, California Legislative Information",
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        "id": "ca-9",
        "title": "Cal. Pub. Contract Code § 7107 (release of retention), California Legislative Information (archived)",
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        "title": "House Bill 21-1167, signed act (enacting C.R.S. article 46 of title 38), Colorado General Assembly",
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        "id": "ct-0",
        "title": "General Statutes of Connecticut, Chapter 742b, Construction Contracts (§§ 42-158i to 42-158s)",
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        "retrievedAt": "2026-09-22",
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        "retrievedAt": "2026-06-15",
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        "title": "General Statutes of Connecticut, Chapter 742b, Construction Contracts (§§ 42-158i to 42-158s) (archived)",
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        "id": "de-1",
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        "id": "fl-1",
        "title": "Fla. Stat. § 255.077 (2024 Florida Statutes), The Florida Senate",
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        "id": "fl-4",
        "title": "Fla. Stat. § 255.078 (public construction retainage), Online Sunshine (archived)",
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        "id": "fl-5",
        "title": "Fla. Stat. § 255.077 (project closeout; payment of retainage), Florida Senate (archived)",
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        "retrievedAt": "2025-02-10",
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        "id": "ia-0",
        "title": "Iowa Code 2026, Chapter 573, Labor and Material on Public Improvements (Iowa Legislature official chapter PDF)",
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        "retrievedAt": "2026-09-22",
        "type": "statute"
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        "id": "ks-0",
        "title": "K.S.A. 16-1804, Retainage; release of retainage; incomplete work; alternate security; failure to pay (Kansas Office of Revisor of Statutes)",
        "url": "https://ksrevisor.gov/statutes/chapters/ch16/016_018_0004.html",
        "retrievedAt": "2026-09-22",
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        "url": "https://ksrevisor.gov/statutes/chapters/ch16/016_019_0004.html",
        "retrievedAt": "2026-09-22",
        "type": "statute"
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        "title": "K.S.A. 16-1802, Definitions (Kansas Office of Revisor of Statutes)",
        "url": "https://ksrevisor.gov/statutes/chapters/ch16/016_018_0002.html",
        "retrievedAt": "2026-09-22",
        "type": "statute"
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        "id": "ky-0",
        "title": "KRS 371.410 (Kentucky Fairness in Construction Act), official PDF served by apps.legislature.ky.gov (archived)",
        "url": "https://web.archive.org/web/20260410091839id_/https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35259",
        "retrievedAt": "2026-04-10",
        "type": "statute"
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        "id": "md-0",
        "title": "Md. Code, Real Property § 9-304, Retention proceeds (Maryland General Assembly statute text)",
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        "retrievedAt": "2026-09-22",
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        "title": "Md. Code, Real Property § 9-303, Remedies",
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        "retrievedAt": "2026-09-22",
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      {
        "id": "md-2",
        "title": "Md. Code, Real Property § 9-301, Definitions",
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        "retrievedAt": "2026-09-22",
        "type": "statute"
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        "id": "md-3",
        "title": "Md. Code, State Finance & Procurement § 17-110, Retention of percentage of total amount of contract as security",
        "url": "https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gsf&section=17-110&enactments=false",
        "retrievedAt": "2026-09-22",
        "type": "statute"
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      {
        "id": "md-4",
        "title": "Md. Code, State Finance & Procurement § 13-225, Retainage on State procurement contracts",
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        "id": "me-0",
        "title": "10 M.R.S. § 1116, Retainage (Maine Revised Statutes, Office of the Revisor of Statutes)",
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        "title": "10 M.R.S. § 1111, Definitions",
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        "title": "10 M.R.S. § 1112, Application",
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        "id": "me-3",
        "title": "10 M.R.S. § 1118, Disputes; penalties; attorney's fees",
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        "retrievedAt": "2026-09-22",
        "type": "statute"
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      {
        "id": "me-4",
        "title": "10 M.R.S. § 1120, Owner exclusion",
        "url": "https://legislature.maine.gov/statutes/10/title10sec1120.html",
        "retrievedAt": "2026-09-22",
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        "id": "me-5",
        "title": "5 M.R.S. § 1746, Retention of part of contract price",
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        "title": "10 M.R.S. § 1116 (retainage; 30-day release; 7-day pass-down), Maine Legislature (archived)",
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        "retrievedAt": "2025-02-22",
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        "title": "MCL 125.1564 (retainage dispute resolution), Michigan Legislature (archived)",
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        "retrievedAt": "2025-01-18",
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        "id": "mn-0",
        "title": "Minn. Stat. § 337.10, Building and construction contracts; prohibited provisions (2025 Minnesota Statutes, Office of the Revisor of Statutes)",
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        "retrievedAt": "2026-09-22",
        "type": "statute"
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        "id": "mn-1",
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        "retrievedAt": "2026-09-22",
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        "id": "mo-0",
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        "title": "MCA 28-2-2103, Payment to contractor and subcontractor",
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        "title": "MCA 28-2-2104, Obligations upon delay of payment",
        "url": "https://mca.legmt.gov/bills/mca/title_0280/chapter_0020/part_0210/section_0040/0280-0020-0210-0040.html",
        "retrievedAt": "2026-09-22",
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        "id": "mt-4",
        "title": "MCA 28-2-2107, Exception for certain residential dwellings",
        "url": "https://mca.legmt.gov/bills/mca/title_0280/chapter_0020/part_0210/section_0070/0280-0020-0210-0070.html",
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        "id": "mt-5",
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        "retrievedAt": "2026-09-22",
        "type": "statute"
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      {
        "id": "nc-0",
        "title": "N.C. Gen. Stat. § 143-134.1, North Carolina General Assembly official statute page",
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        "type": "statute"
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        "id": "nc-1",
        "title": "N.C. Gen. Stat. Chapter 22C, Payments to Subcontractors, North Carolina General Assembly official chapter page",
        "url": "https://web.archive.org/web/20260803162054/https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/ByChapter/Chapter_22C.html",
        "retrievedAt": "2026-09-22",
        "type": "statute"
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        "id": "nd-0",
        "title": "N.D.C.C. ch. 48-01.2, Public Improvement Bids and Contracts (North Dakota Legislative Branch official Century Code PDF)",
        "url": "https://ndlegis.gov/cencode/t48c01-2.pdf",
        "retrievedAt": "2026-09-22",
        "type": "statute"
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      {
        "id": "nd-1",
        "title": "N.D.C.C. ch. 43-07, Contractors (North Dakota Legislative Branch official Century Code PDF), § 43-07-23",
        "url": "https://ndlegis.gov/cencode/t43c07.pdf",
        "retrievedAt": "2026-09-22",
        "type": "statute"
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      {
        "id": "ne-0",
        "title": "Neb. Rev. Stat. 45-1204, Withholdings; authorized (Nebraska Legislature official page)",
        "url": "https://web.archive.org/web/20251115005337/https://nebraskalegislature.gov/laws/statutes.php?statute=45-1204",
        "retrievedAt": "2026-09-22",
        "type": "statute"
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        "title": "Neb. Rev. Stat. 45-1203 (official page)",
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        "title": "Neb. Rev. Stat. 45-1202, Terms, defined (official page)",
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        "type": "statute"
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        "id": "ne-3",
        "title": "Neb. Rev. Stat. § 45-1204 (retainage cap; 50% step-down), Nebraska Legislature (archived)",
        "url": "https://web.archive.org/web/20251115005337id_/https://nebraskalegislature.gov/laws/statutes.php?statute=45-1204",
        "retrievedAt": "2025-11-15",
        "type": "statute"
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        "id": "ne-4",
        "title": "Neb. Rev. Stat. § 45-1203 (release of retainage; 45 days), Nebraska Legislature (archived)",
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        "type": "statute"
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        "url": "https://www.nj.gov/labor/wageandhour/assets/PDFs/LPCL-NJAC%20Reference%20Guide%20V2.1.pdf",
        "retrievedAt": "2026-09-22",
        "type": "agency"
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        "id": "nj-1",
        "title": "New Jersey Local Public Contracts Law and Regulation Reference Manual (NJ Department of Community Affairs, Division of Local Government Services, April 2014)",
        "url": "https://www.nj.gov/dca/divisions/dlgs/programs/lpcl_docs/Full%204-14%20LPCL-NJAC%20Reference%20Handbook.pdf",
        "retrievedAt": "2026-09-22",
        "type": "agency"
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        "id": "nj-2",
        "title": "P.L.2006, c.96 (Prompt Payment Act, amending C.2A:30A-1 and C.2A:30A-2), New Jersey Legislature official session law",
        "url": "https://web.archive.org/web/20240816100733/https://pub.njleg.gov/bills/2006/PL06/96_.HTM",
        "retrievedAt": "2026-09-22",
        "type": "statute"
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      {
        "id": "nv-0",
        "title": "NRS Chapter 624 (Contractors), Nevada Legislature official chapter page, rev. 4/15/2026",
        "url": "https://web.archive.org/web/20260918174729/https://www.leg.state.nv.us/nrs/nrs-624.html",
        "retrievedAt": "2026-09-22",
        "type": "statute"
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      {
        "id": "nv-1",
        "title": "NRS Chapter 338 (Public Works), Nevada Legislature official chapter page, rev. 4/15/2026",
        "url": "https://web.archive.org/web/20260918165645/https://www.leg.state.nv.us/NRS/NRS-338.html",
        "retrievedAt": "2026-09-22",
        "type": "statute"
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        "id": "ny-0",
        "title": "N.Y. General Business Law § 756-c, Retention, New York State Senate official law page",
        "url": "https://www.nysenate.gov/legislation/laws/GBS/756-C",
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        "type": "statute"
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        "id": "ny-1",
        "title": "N.Y. General Municipal Law § 106-b, New York State Senate official law page",
        "url": "https://www.nysenate.gov/legislation/laws/GMU/106-B",
        "retrievedAt": "2026-09-22",
        "type": "statute"
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        "id": "oh-0",
        "title": "Ohio Rev. Code § 153.12, Awarding and executing contract, effective September 30, 2025 (Ohio Laws, codes.ohio.gov)",
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        "type": "statute"
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        "id": "oh-1",
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        "retrievedAt": "2026-09-22",
        "type": "statute"
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        "retrievedAt": "2026-09-22",
        "type": "statute"
      },
      {
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        "title": "Ohio Rev. Code § 153.63, Escrow account, effective September 30, 2025 (Ohio Laws)",
        "url": "https://web.archive.org/web/20260315172715/https://codes.ohio.gov/ohio-revised-code/section-153.63",
        "retrievedAt": "2026-09-22",
        "type": "statute"
      },
      {
        "id": "oh-4",
        "title": "Ohio Rev. Code § 4113.61, effective September 29, 2011 (Ohio Laws)",
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        "retrievedAt": "2026-09-22",
        "type": "statute"
      },
      {
        "id": "oh-5",
        "title": "Ohio Rev. Code § 153.12 (partial payments; 96% floor), Ohio Laws and Administrative Rules (archived)",
        "url": "https://web.archive.org/web/20260316182614id_/https://codes.ohio.gov/ohio-revised-code/section-153.12",
        "retrievedAt": "2026-03-16",
        "type": "statute"
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        "type": "statute"
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        "id": "ok-0",
        "title": "Oklahoma Statutes, Title 61, Public Buildings and Public Works (Oklahoma State Senate official publication), §§ 113.1, 113.2, 113.3, 221-227",
        "url": "https://oksenate.gov/sites/default/files/2019-12/os61.pdf",
        "retrievedAt": "2026-09-22",
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        "id": "or-0",
        "title": "ORS Chapter 701, Construction Contractors and Contracts, 2025 Edition (Oregon Legislative Assembly official ORS page)",
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        "type": "statute"
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        "title": "ORS Chapter 279C, Public Contracting, Public Improvements and Related Contracts, 2025 Edition (Oregon Legislative Assembly official ORS page)",
        "url": "https://web.archive.org/web/20260223093803/https://www.oregonlegislature.gov/bills_laws/ors/ors279c.html",
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        "type": "statute"
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        "id": "ri-0",
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        "title": "S.C. Code of Laws Title 29, Chapter 6 (Payments to Contractors, Subcontractors, and Suppliers)",
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        "retrievedAt": "2026-09-22",
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        "url": "https://web.archive.org/web/20260513193031id_/https://publications.tnsosfiles.com/acts/111/pub/pc0749.pdf",
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        "title": "Archived copy of statutes.capitol.texas.gov/Docs/PR/htm/PR.53.htm",
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        "type": "statute"
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        "title": "9 V.S.A. Sec. 4001, Definitions",
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        "retrievedAt": "2026-09-22",
        "type": "statute"
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        "type": "statute"
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        "id": "vt-3",
        "title": "9 V.S.A. Sec. 4007, Disputes; penalties; attorney's fees",
        "url": "https://legislature.vermont.gov/statutes/section/09/102/04007",
        "retrievedAt": "2026-09-22",
        "type": "statute"
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        "id": "vt-4",
        "title": "9 V.S.A. Sec. 4005a, Fund held in trust",
        "url": "https://legislature.vermont.gov/statutes/section/09/102/04005a",
        "retrievedAt": "2026-09-22",
        "type": "statute"
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        "id": "vt-5",
        "title": "9 V.S.A. Sec. 4009, Owner exclusion",
        "url": "https://legislature.vermont.gov/statutes/section/09/102/04009",
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        "url": "https://legislature.vermont.gov/statutes/chapter/09/102",
        "retrievedAt": "2026-09-22",
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        "title": "Wisconsin DOT AASHTOWare Project Knowledge Base, 'Retainage' (agency practice, not statutory text)",
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        "retrievedAt": "2026-09-22",
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      },
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        "id": "wi-1",
        "title": "Wis. Stat. § 66.0901(9) (public contracts; retainage), Wisconsin Legislature (archived)",
        "url": "https://web.archive.org/web/20251119122920id_/https://docs.legis.wisconsin.gov/statutes/statutes/66/IX/0901",
        "retrievedAt": "2025-11-19",
        "type": "statute"
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      {
        "id": "wi-2",
        "title": "Wis. Stat. ch. 779, official chapter PDF (§ 779.135, void contract provisions), Wisconsin Legislature (archived)",
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        "retrievedAt": "2026-07-13",
        "type": "statute"
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      {
        "id": "wy-0",
        "title": "Wyoming Statutes Title 16 (City, County, State and Local Powers), official LSO compiled PDF - Sec. 16-6-116, Sec. 16-6-702 through Sec. 16-6-706",
        "url": "https://wyoleg.gov/statutes/compress/title16.pdf",
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    ],
    "changelog": [
      {
        "date": "2026-09-23",
        "change": "Dataset first published with 36 of 51 jurisdictions verified",
        "fields": []
      }
    ]
  },
  "records": [
    {
      "jurisdiction": "AR",
      "name": "Arkansas",
      "private": {
        "regulated": false,
        "capPct": null,
        "capNote": "No statewide statute governs retainage on private construction projects. Arkansas's retainage subchapter (Ark. Code §§ 22-9-601 to 22-9-604) sits in Title 22 'Public Property', Chapter 9 'Public Works', and by its terms applies to 'a construction contract entered into between a public agency and a contractor who is required to furnish a performance bond'.",
        "stepDown": null,
        "releaseTrigger": null,
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": null,
        "statuteUrl": null,
        "statuteQuote": null,
        "relatedSections": [],
        "effectiveOrAmended": null
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "Ark. Code § 22-9-604(a)(1), as amended by Act 193 of 2009: the contractor is entitled to 95 percent of earned progress payments, with the public agency retaining 5 percent. No retainage may be withheld on the portion of a progress payment covering materials or equipment the contract requires the contractor to purchase and store on the job site or in a bonded warehouse (§ 22-9-604(c)). Applies where the contractor is required to furnish a performance bond.",
        "stepDown": "None as of Act 193 of 2009. The former § 22-9-604(a)(2) ('Upon certification by the project architect or engineer that the construction contract is fifty percent (50%) complete, no further retainage will be withheld from the monthly estimates') was struck by Act 193 of 2009, which renumbered the phased-release paragraph from (a)(3) to (a)(2).",
        "releaseTrigger": "All sums withheld are held in escrow and must be paid to the contractor within 30 days after the construction contract has been substantially completed. Separately, where the contract allows phased work with completion on partial occupancy, retention must be partially released within 30 days in direct proportion to the value of the completed part of the capital improvement.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "All sums withheld by the public agency shall be held in escrow and shall be paid to the contractor within thirty (30) days after the construction contract has been substantially completed.",
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": "Ark. Code Ann. § 22-9-604, the 5% cap from Act 193 of 2009, § 10; the escrow and 30-day release from Act 471 of 2007, § 3.",
        "statuteUrl": "https://web.archive.org/web/20251012131637id_/https://arkleg.state.ar.us/Home/FTPDocument?path=%2FACTS%2F2009%2FPublic%2FACT193.pdf",
        "statuteQuote": "In the case of a construction contract entered into between a public agency and a contractor who is required to furnish a performance bond, the contractor shall be entitled to payment of ninety-five percent (95%) of the earned progress payments when due, with the public agency retaining five percent (5%) to assure faithful performance of the contract.",
        "relatedSections": [
          "Ark. Code § 22-9-601",
          "Ark. Code § 22-9-602",
          "Ark. Code § 22-9-603"
        ],
        "effectiveOrAmended": "Acts 2007, No. 471, § 3 (approved 3/23/2007); Acts 2009, No. 193, § 10 (approved 2/19/2009, changed 90%/10% to 95%/5% and deleted the 50%-completion step-down)."
      },
      "summary": "Private Arkansas jobs: no statute caps retainage or sets a release date; the contract controls. Public Arkansas jobs (where a performance bond is required): the agency may hold only 5 percent, may not hold any retainage against properly stored materials, must keep the withheld money in escrow, and must pay it out within 30 days after substantial completion, and since 2009 there is no longer a rule that retainage stops at 50 percent completion.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "ar-0",
        "ar-1",
        "ar-2",
        "ar-3"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "AZ",
      "name": "Arizona",
      "private": {
        "regulated": true,
        "capPct": null,
        "capNote": "No percentage cap. A.R.S. § 32-1182(D): 'The owner may withhold from a progress payment a reasonable amount for retention.' When retention is released the owner may withhold from it not more than 150 percent of the direct costs and expenses the owner reasonably expects to incur because of the contractor's failure to complete portions of the work (§ 32-1182(H)(2)). An owner may contract for different definitions of 'retention', 'substantial completion' and 'final completion' and different release timing only by the conspicuous plan-sheet legends prescribed in § 32-1182(U)-(W). NOTE: these provisions were formerly numbered A.R.S. §§ 32-1129 to 32-1129.07; the current Arizona Revised Statutes listing places them at §§ 32-1181 to 32-1188.",
        "stepDown": null,
        "releaseTrigger": "On substantial completion the contractor submits a billing or estimate for release of retention. It is deemed certified and approved 14 days after the owner receives it unless the owner issues a written statement of reasons; the owner must then pay the retention within 7 days after certification and approval. Where a portion of the contract has a separately stated price, release is billed per portion on its own substantial completion.",
        "releaseDeadlineDays": 7,
        "releaseQuote": "Except as provided in subsections C and H of this section, the owner shall pay the retention to the contractor within seven days after the date the billing or estimate for release of retention is certified and approved.",
        "interestOrPenalty": "Interest at 1.5 percent a month (or a higher agreed rate) on the unpaid balance when an owner fails to pay on time (§ 32-1182(Q)); the successful party in an action or arbitration is awarded costs and reasonable attorney fees (§ 32-1182(S)). A contractor or subcontractor that delays a retention release to a lower tier by more than seven days owes 1.5 percent per month from the eighth day (§ 32-1183(H)).",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "A.R.S. § 32-1182 (formerly § 32-1129.01).",
        "statuteUrl": "https://www.azleg.gov/ars/32/01182.htm",
        "statuteQuote": "The owner may withhold from a progress payment a reasonable amount for retention. … On substantial completion of the work, a contractor shall submit a billing or estimate for release of retention. … the owner shall pay the retention to the contractor within seven days after the date the billing or estimate for release of retention is certified and approved.",
        "relatedSections": [
          "A.R.S. § 32-1181 (definitions; applicability)",
          "A.R.S. § 32-1183 (payment by contractor to subcontractors; 7 days; retention flow-down cap)",
          "A.R.S. § 32-1185",
          "A.R.S. § 32-1188"
        ],
        "effectiveOrAmended": null
      },
      "public": {
        "regulated": true,
        "capPct": 10,
        "capNote": "State contracts (A.R.S. § 41-2576(A)-(B)): 10 percent of all construction contract payments retained; at 50 percent completion one-half of the amount retained is paid on the contractor's request if progress is satisfactory, and thereafter no more than 5 percent of subsequent progress payments may be retained; 10 percent retention is reinstated if progress becomes unsatisfactory. There is no retention for job-order-contracting contracts, and the purchasing agency may elect none for CM-at-risk and design-build (§ 41-2576(E)). Contracts let by 'agents' (counties, cities, school districts and other political subdivisions) under A.R.S. § 34-221(C)(2)-(5) follow the same 10% → 5% pattern.",
        "stepDown": "When the contract is 50 percent completed, one-half of the amount retained (or the substituted securities) is paid to the contractor on request if progress is satisfactory, and retention on later progress payments drops to a maximum of 5 percent; 10 percent is reinstated if the owner determines satisfactory progress is not being made.",
        "releaseTrigger": "Any retention must be paid, or substitute security returned, within 60 days after final completion and acceptance of the work under the contract. Holding retention longer than 60 days requires a specific written finding by the purchasing agency of the reasons justifying the delay, and no more may be held than is necessary to cover the expenses identified in that finding.",
        "releaseDeadlineDays": 60,
        "releaseQuote": "Any retention shall be paid or substitute security shall be returned to the contractor within sixty days after final completion and acceptance of work under the contract. Retention of payments by a purchasing agency longer than sixty days after final completion and acceptance requires a specific written finding by the purchasing agency of the reasons justifying the delay in payment.",
        "interestOrPenalty": null,
        "securitiesSubstitution": true,
        "appliesToSubs": true,
        "statute": "A.R.S. § 41-2576 (state); A.R.S. § 34-221 (political subdivisions and other 'agents').",
        "statuteUrl": "https://www.azleg.gov/ars/41/02576.htm",
        "statuteQuote": "Ten per cent of all construction contract payments shall be retained by this state as insurance of proper performance of the contract or, at the option of the contractor, a substitute security may be provided by the contractor in an authorized form pursuant to rules adopted by the director.",
        "relatedSections": [
          "A.R.S. § 34-221(C) (agent contracts: 10%, 50% release, 5% thereafter, 60-day payment, securities substitution)",
          "A.R.S. § 34-609 (CM-at-risk, design-build, job-order-contracting)",
          "A.R.S. § 41-2577"
        ],
        "effectiveOrAmended": null
      },
      "summary": "Private Arizona jobs: there is no percentage cap (the owner may hold a 'reasonable amount'), but once you bill for release of retention at substantial completion, the billing is deemed approved 14 days later and the owner must pay within 7 days after that, with 1.5% per month interest plus fees if it does not. Public Arizona jobs: 10% retention, cut to 5% (with half the held amount returned) once the job is 50% complete and progress is satisfactory, paid out within 60 days after final completion and acceptance, and you may swap in securities instead of cash.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "az-0",
        "az-1",
        "az-2",
        "az-3",
        "az-4"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "CA",
      "name": "California",
      "private": {
        "regulated": true,
        "capPct": null,
        "capNote": "No statutory percentage cap on retention in private works of improvement. Civ. Code § 8812(c): in a good faith dispute the owner may withhold from final payment an amount not in excess of 150 percent of the disputed amount; § 8814(c) applies the same 150 percent limit to a direct contractor withholding from a subcontractor. Article 2 (§§ 8810-8822) governs retention withheld by an owner from a direct contractor or by a direct contractor from a subcontractor (§ 8810), and it is against public policy to waive it by contract (§ 8820).",
        "stepDown": null,
        "releaseTrigger": "Within 45 days after completion of the work of improvement the owner must pay the retention to the direct contractor. If part of the work will become the property of a public entity, the owner may condition payment of the retention allocable to that part on the public entity's acceptance.",
        "releaseDeadlineDays": 45,
        "releaseQuote": "If an owner withholds a retention from a direct contractor, the owner shall, within 45 days after completion of the work of improvement, pay the retention to the contractor.",
        "interestOrPenalty": "Civ. Code § 8818: the owner or direct contractor is liable for a penalty of 2 percent per month on the amount wrongfully withheld, in place of any interest otherwise due, and the prevailing party in an action for collection is entitled to costs and reasonable attorney's fees.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Cal. Civ. Code § 8812.",
        "statuteUrl": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=8812",
        "statuteQuote": "If an owner withholds a retention from a direct contractor, the owner shall, within 45 days after completion of the work of improvement, pay the retention to the contractor. … If there is a good faith dispute between the owner and direct contractor as to a retention payment due, the owner may withhold from final payment an amount not in excess of 150 percent of the disputed amount.",
        "relatedSections": [
          "Cal. Civ. Code § 8810 (scope)",
          "Cal. Civ. Code § 8814 (direct contractor to subcontractor, 10 days)",
          "Cal. Civ. Code § 8818 (2% per month penalty; fees)",
          "Cal. Civ. Code § 8820 (anti-waiver)"
        ],
        "effectiveOrAmended": "Added by Stats. 2010, Ch. 697, § 20 (SB 189); effective January 1, 2011, operative July 1, 2012."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "Pub. Contract Code § 7201(b)(1): retention proceeds withheld by a public entity from the original contractor, by the original contractor from any subcontractor, and by a subcontractor from any lower-tier subcontractor shall not exceed 5 percent of the payment, and total retention shall not exceed 5 percent of the contract price; a lower tier may not be held to a higher percentage than the public entity holds from the original contractor. Two exceptions: (i) a subcontractor that, after pre-bid written notice under § 4108(c), cannot or will not furnish a performance and payment bond (§ 7201(b)(2)); and (ii) projects the awarding entity finds, before bid and with the basis explained in the bid documents, to be 'substantially complex' (§ 7201(b)(3)-(5)). § 7201 applies to contracts entered into on or after January 1, 2012; no party may require another to waive it (§ 7201(c)).",
        "stepDown": null,
        "releaseTrigger": "Within 60 days after the date of completion of the work of improvement the retention withheld by the public entity must be released; in a dispute the entity may withhold from final payment not more than 150 percent of the disputed amount. 'Completion' means occupation/beneficial use with cessation of labor, acceptance by the agency, a 100-day cessation of labor beyond the contractor's control, or a 30-day cessation with a recorded notice of cessation or completion (§ 7107(c)). A state agency retaining an amount equal to or less than 125 percent of the estimated value of the remaining work has 90 days (§ 7107(g)).",
        "releaseDeadlineDays": 60,
        "releaseQuote": "Within 60 days after the date of completion of the work of improvement, the retention withheld by the public entity shall be released. In the event of a dispute between the public entity and the original contractor, the public entity may withhold from the final payment an amount not to exceed 150 percent of the disputed amount.",
        "interestOrPenalty": "Pub. Contract Code § 7107(f): a public entity or original contractor that fails to make retention payments within the required time is subject to a charge of 2 percent per month on the improperly withheld amount, in lieu of any interest otherwise due, and the prevailing party in an action for collection of funds wrongfully withheld is entitled to attorney's fees and costs. Any attempted waiver of § 7107 is void as against public policy (§ 7107(h)).",
        "securitiesSubstitution": true,
        "appliesToSubs": true,
        "statute": "Cal. Pub. Contract Code § 7201(b)(1).",
        "statuteUrl": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=7201.&lawCode=PCC",
        "statuteQuote": "The retention proceeds withheld from any payment by a public entity from the original contractor, by the original contractor from any subcontractor, and by a subcontractor from any subcontractor thereunder shall not exceed 5 percent of the payment. In no event shall the total retention proceeds withheld exceed 5 percent of the contract price.",
        "relatedSections": [
          "Cal. Pub. Contract Code § 7201 (5% cap; substantially complex exception)",
          "Cal. Pub. Contract Code § 22300 (substitution of securities; escrow)",
          "Cal. Pub. Contract Code § 10261 (state agency retention)",
          "Cal. Pub. Contract Code § 4108(c)"
        ],
        "effectiveOrAmended": "applies to contracts entered into on or after 2012-01-01 (§ 7201(a)(1))."
      },
      "summary": "Private California jobs: no cap on how much retention an owner may hold, but it must be paid within 45 days after completion of the work of improvement (the direct contractor then has 10 days to pass each subcontractor its share), and late payment costs 2 percent per month plus attorney's fees. Public California jobs: retention is capped at 5 percent at every tier unless the awarding entity made a pre-bid 'substantially complex' finding, must be released within 60 days after completion, passes through to subcontractors within 7 days, and you may substitute securities or escrow for the cash.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-23",
      "publishable": true,
      "sourceIds": [
        "ca-0",
        "ca-1",
        "ca-2",
        "ca-3",
        "ca-4",
        "ca-5",
        "ca-6",
        "ca-7",
        "ca-8",
        "ca-9",
        "ca-10"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "CO",
      "name": "Colorado",
      "private": {
        "regulated": true,
        "capPct": 5,
        "capNote": "C.R.S. § 38-46-103(1) (added by HB21-1167): 'A property owner, contractor, or subcontractor shall not withhold as retainage more than five percent of the price of the work completed under the contract or subcontract.' Article 46 applies to a contract with a price of at least $150,000 between a property owner and a contractor, and to any subcontract or supply agreement under such a contract even if its own price is below $150,000 (§ 38-46-102(1)). It does not apply to a single contract governing the building of one single-family dwelling or one multifamily dwelling with no more than four family dwelling units, or to a contract with a public entity as defined in § 24-91-102(3) (§ 38-46-102(2)).",
        "stepDown": null,
        "releaseTrigger": "Not regulated. C.R.S. § 38-46-103(2) states that article 46 'addresses only the amount of retainage that may be withheld' and does not change, override or invalidate contract provisions on timing of payment (including final payment), satisfactory-performance requirements, backcharges, or pay-if-paid style conditions precedent.",
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "C.R.S. § 38-46-103 (article 46 of title 38, §§ 38-46-101 to 38-46-104).",
        "statuteUrl": "https://web.archive.org/web/20260114230255id_/https://content.leg.colorado.gov/sites/default/files/images/olls/crs2024-title-38.pdf",
        "statuteQuote": "A property owner, contractor, or subcontractor shall not withhold as retainage more than five percent of the price of the work completed under the contract or subcontract. Making a partial payment under this subsection (1) is not acceptance or approval of some of the work or of a waiver of defects in the work.",
        "relatedSections": [
          "C.R.S. § 38-46-101 (definitions)",
          "C.R.S. § 38-46-102 (applicability; $150,000 threshold and exclusions)",
          "C.R.S. § 38-46-104 (lien waivers)"
        ],
        "effectiveOrAmended": "HB21-1167, ch. 146, Session Laws of Colorado 2021; effective September 7, 2021; applies to contracts made on or after that date."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "C.R.S. § 24-91-103(1)(a): for a contract exceeding $150,000 for the construction, alteration or repair of any highway, public building, public work, public improvement, structure or system, the public entity 'shall pay at least ninety-five percent of the calculated value of completed work' in monthly partial payments, so long as the contractor is satisfactorily performing. Article 91 does not apply where federal or other funding-source retention requirements are inconsistent with it (§ 24-91-110).",
        "stepDown": "No automatic step-down. Under § 24-91-103(1)(c), if the public entity finds satisfactory progress is being made in any phase, it may, on the contractor's written request, authorize final payment from the withheld percentage to the contractor or to subcontractors who have finished their work acceptably, after determining that satisfactory and substantial reasons exist and obtaining written approval from any surety.",
        "releaseTrigger": "The withheld percentage may be retained until the contract is completed satisfactorily and finally accepted by the public entity; the public entity must then make final settlement in accordance with C.R.S. § 38-26-107 within 60 days after the contract is completed satisfactorily and finally accepted.",
        "releaseDeadlineDays": 60,
        "releaseQuote": "The public entity shall make a final settlement in accordance with section 38-26-107, C.R.S., within sixty days after the contract is completed satisfactorily and finally accepted by the public entity.",
        "interestOrPenalty": "For pass-through payments only: a contractor must pay each subcontractor within seven calendar days of receiving payment, and a contractor that fails to pay a subcontractor on time must pay interest 'as specified by contract or at the rate of fifteen percent per annum whichever is higher' from the required payment date to the date of payment (§ 24-91-103(2)). That subsection expressly does not affect the retention provisions of any contract.",
        "securitiesSubstitution": true,
        "appliesToSubs": true,
        "statute": "C.R.S. § 24-91-103.",
        "statuteUrl": "https://content.leg.colorado.gov/sites/default/files/images/olls/crs2024-title-24.pdf",
        "statuteQuote": "The public entity shall pay at least ninety-five percent of the calculated value of completed work. The withheld percentage of the contract price of any contracted work, improvement, or construction may be retained until the contract is completed satisfactorily and finally accepted by the public entity.",
        "relatedSections": [
          "C.R.S. § 24-91-102 (definitions)",
          "C.R.S. § 24-91-105 (withdrawal on security deposit)",
          "C.R.S. § 24-91-106 (escrow agreement)",
          "C.R.S. § 24-91-107 (custodian; interest income)",
          "C.R.S. § 24-91-108",
          "C.R.S. § 24-91-109 (disbursement of retained payments to subcontractors)",
          "C.R.S. § 24-91-110 (federally funded contracts excepted)",
          "C.R.S. § 38-26-107 (final settlement)"
        ],
        "effectiveOrAmended": "L. 79 (article added); L. 91, L. 2004, L. 2011 (HB 11-1115, effective August 10, 2011), L. 2014 ((1)(a) amended, HB 14-1387, effective June 6, 2014)."
      },
      "summary": "Private Colorado jobs: since September 7, 2021 nobody in the chain (owner, contractor or subcontractor) may hold back more than 5 percent of the price of completed work on a contract of $150,000 or more (single-family and up-to-four-unit dwellings are exempt), but the statute says nothing about when retainage must be released, so your contract's payment terms still control. Public Colorado jobs over $150,000: the entity must pay at least 95 percent of the value of completed work each month, may hold the 5 percent until the job is satisfactorily completed and finally accepted, must make final settlement within 60 days of that acceptance, and must let you swap in securities.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "co-0",
        "co-1",
        "co-2",
        "co-3"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "CT",
      "name": "Connecticut",
      "private": {
        "regulated": true,
        "capPct": 5,
        "capNote": "Conn. Gen. Stat. § 42-158k: 'No construction contract may provide for any retainage in an amount that exceeds five per cent of the estimated amount of a progress payment for the life of the construction project.' 'Construction contract' (§ 42-158i(2)) excludes public works or other building contracts with this state, the United States, any other state, or any municipality or political subdivision; projects funded or insured by HUD; owner-contractor contracts of $25,000 or less and subcontracts resulting from them; and contracts for a building intended for residential occupancy containing four or fewer units.",
        "stepDown": null,
        "releaseTrigger": "All retainage must be paid by the owner not later than 30 days after issuance of a certificate of final completion by the owner or the owner's authorized representative, or not later than 30 days after the equivalent written acceptance of the construction project work by the owner.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "All retainage shall be paid by the owner not later than thirty days after the issuance of a certificate of final completion by the owner or the owner's authorized representative or not later than thirty days after the equivalent written acceptance of the construction project work by the owner.",
        "interestOrPenalty": "Under § 42-158j(c), after a claim is served by registered or certified mail the payer becomes liable ten days later for interest at 1 percent per month accruing from receipt of the notice, and on written demand must place the claim amount plus that interest in an interest-bearing escrow account in a Connecticut bank; unreasonable refusal to escrow exposes the payer to the payment, reasonable attorneys' fees and 1 percent per month interest, and bad-faith withholding carries 10 percent damages. In an action to enforce § 42-158k, § 42-158m or § 42-158p a court may award court costs and reasonable attorney's fees to the prevailing party (§ 42-158r).",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Conn. Gen. Stat. § 42-158k.",
        "statuteUrl": "https://web.archive.org/web/20251127153519id_/https://www.cga.ct.gov/current/pub/chap_742b.htm",
        "statuteQuote": "No construction contract may provide for any retainage in an amount that exceeds five per cent of the estimated amount of a progress payment for the life of the construction project.",
        "relatedSections": [
          "Conn. Gen. Stat. § 42-158i (definitions; exclusions)",
          "§ 42-158j (payment deadlines: 30 days owner to contractor, 25 days contractor to subcontractor; interest and escrow)",
          "§ 42-158p (retainage escrow accounts)",
          "§ 42-158q (escrow exclusions)",
          "§ 42-158r (enforcement; fees)"
        ],
        "effectiveOrAmended": "P.A. 99-153, S. 3; P.A. 03-167, S. 8; P.A. 10-148, S. 1 (retainage limit reduced from 7.5% to 5%); P.A. 17-182, S. 2 (owner payment provision added, effective July 1, 2017)."
      },
      "public": {
        "regulated": true,
        "capPct": 7.5,
        "capNote": "Conn. Gen. Stat. § 49-41b applies where a payment bond is required by § 49-41 and the contract requires a performance bond in the full contract price. Three regimes: (1) contracts advertised by the Department of Administrative Services or any other state agency: the awarding authority may not withhold more than 7.5 percent, reduced to 5 percent when 50 percent of the contract is completed, and the prime may not withhold from a subcontractor more than 7.5 percent or the amount withheld from the prime, whichever is less, also reduced to 5 percent at 50 percent completion; (2) contracts advertised by the state Department of Transportation: not more than 2.5 percent, at both tiers; (3) municipal awarding authorities: not more than 5 percent, at both tiers.",
        "stepDown": "State (DAS or other state agency) contracts only: when 50 percent of the contract is completed the permitted withholding drops from 7.5 percent to 5 percent, at both the awarding-authority and the subcontractor tier, and payment must be made not later than 90 days after a complete application for payment demonstrating 50 percent completion is submitted. The awarding authority must also establish an early release program for periodic payments by primes to subcontractors.",
        "releaseTrigger": "Section 49-41b sets the 50 percent-completion reduction and its 90-day payment deadline; it does not itself fix a deadline for final release of the remaining retainage.",
        "releaseDeadlineDays": 90,
        "releaseQuote": "Payment shall be made not later than ninety days after a complete application for payment demonstrating that fifty per cent contract completion has been submitted to the awarding authority.",
        "interestOrPenalty": "Conn. Gen. Stat. § 49-41a(c): if the general contractor or a subcontractor fails to pay as required, the claimant serves notice by registered or certified mail and ten days later the payer is liable for interest at 1 percent per month on the amount due, must on written demand escrow the claim amount plus 1 percent in a Connecticut bank, and must pay the claimant's attorney's fees if it refuses to escrow and the claimant is found to have substantially performed.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Conn. Gen. Stat. § 49-41b.",
        "statuteUrl": "https://web.archive.org/web/20260615084819id_/https://www.cga.ct.gov/current/pub/chap_847.htm",
        "statuteQuote": "the awarding authority shall not withhold more than seven and one-half per cent from any periodic or final payment which is otherwise properly due to the general or prime contractor under the terms of such contract, provided, when fifty per cent of the contract is completed, said amount shall be reduced to five per cent",
        "relatedSections": [
          "Conn. Gen. Stat. § 49-41 (payment bond requirement)",
          "§ 49-41a (payment by general contractor to subcontractor within 30 days; interest; escrow)",
          "§ 49-42 (bond claims; 180 days from the § 49-41a(a) payment date for retainage)"
        ],
        "effectiveOrAmended": "P.A. 77-306; P.A. 87-575, S. 2; P.A. 96-235; P.A. 98-222; P.A. 11-51; P.A. 13-247; P.A. 16-104, S. 1."
      },
      "summary": "Private Connecticut jobs: retainage may never exceed 5 percent of a progress payment for the life of the project, it must sit in a Connecticut escrow account, and the owner must pay all of it within 30 days after issuing a certificate of final completion or an equivalent written acceptance, with 1 percent per month interest, escrow obligations, fees and possible 10 percent bad-faith damages if it does not. For public Connecticut jobs with a payment bond, the cap depends on who is paying: 7.5 percent for state agency work dropping to 5 percent once the job is half done (payable within 90 days of the 50 percent application), 2.5 percent for state DOT work, and 5 percent for municipal work, with the same caps binding your prime contractor.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "ct-0",
        "ct-1",
        "ct-2",
        "ct-3"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "DC",
      "name": "District of Columbia",
      "private": {
        "regulated": false,
        "capPct": null,
        "capNote": "No District of Columbia statute regulating retainage on private construction contracts was located. The Quick Payment Act (D.C. Code § 2-221.01 et seq.) applies to District agencies acquiring property or services, not to private owners.",
        "stepDown": null,
        "releaseTrigger": null,
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": null,
        "statuteUrl": null,
        "statuteQuote": null,
        "relatedSections": [],
        "effectiveOrAmended": null
      },
      "public": {
        "regulated": true,
        "capPct": null,
        "capNote": "The Quick Payment Act (D.C. Code § 2-221.02) governs required payment dates and interest penalties for District agency contracts.",
        "stepDown": null,
        "releaseTrigger": null,
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": "D.C. Code § 2-221.02(a)-(b): an agency that does not pay by the required payment date (the contract date, or 30 calendar days (excluding legal holidays) after receipt of a proper invoice if the contract sets none) must pay an interest penalty from the day after the required payment date until payment, at a rate of not less than 1 percent set by the Mayor by regulation, with no penalty if payment is made by the 15th day after the required date; unpaid interest is added to principal every 30 days. Agencies must notify the business of any invoice defect within 15 days. Contracts must obligate the contractor, within 7 days of receiving a District payment, either to pay each subcontractor its proportionate share or to notify the agency and the subcontractor in writing of its intention to withhold and why, and to pay the subcontractor the same interest (§ 2-221.02(d)).",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "D.C. Code § 2-221.02 (Quick Payment Act).",
        "statuteUrl": "https://code.dccouncil.gov/us/dc/council/code/sections/2-221.02",
        "statuteQuote": "A payment clause that obligates the contractor to take one of the 2 following actions within 7 days of receipt of any amount paid to the contractor by the District agency for work performed by any subcontractor under a contract: (A) Pay the subcontractor for the proportionate share … or (B) Notify the District agency and the subcontractor, in writing, of the contractor's intention to withhold all or part of the subcontractor's payment with the reason for the nonpayment.",
        "relatedSections": [
          "D.C. Code § 2-221.01 (definitions)",
          "D.C. Code § 2-221.03",
          "D.C. Code § 2-221.04"
        ],
        "effectiveOrAmended": "D.C. Law 5-164, § 3 (Mar. 15, 1985); amended through D.C. Law 22-121, § 2 (July 3, 2018)."
      },
      "summary": "Private District of Columbia jobs: no statute caps retainage or sets a release deadline; the contract controls. District government jobs: the D.C. Official Code sets no retainage percentage or release deadline either (retainage is handled by the District's procurement regulations at 27 DCMR), but the Quick Payment Act requires the agency to pay a proper invoice within 30 days with interest of at least 1 percent thereafter, and requires your prime contractor either to pass your share down within 7 days of being paid or to tell you and the agency in writing why it is withholding.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "dc-0",
        "dc-1"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "DE",
      "name": "Delaware",
      "private": {
        "regulated": true,
        "capPct": null,
        "capNote": "No statutory cap and no statutory release deadline. Delaware's Building Construction Payments chapter expressly preserves contractual retainage: 6 Del. C. § 3506(a)(3) says the required payment clause 'shall not be construed to impair the right of the owner to include in its contracts provisions which permit the owner to retain a specified percentage of each progress payment otherwise due to a contractor for satisfactory performance under the contract without incurring any obligation to incur an interest penalty, in accordance with the terms and conditions agreed to by the parties'; § 3506(d) says the same for contractor-to-subcontractor retainage and § 3507(c) repeats it. Where payment is withheld, written notice of the reason must be given within 7 days of the date payment was required.",
        "stepDown": null,
        "releaseTrigger": "Not regulated for retainage specifically. The chapter's general deadlines are: owner pays the contractor within 30 days of the end of the billing period (§ 3506(a)(1)); if the contract is silent, the owner pays all undisputed amounts within 30 days after the end of the billing period or 30 days after delivery of the invoice, whichever is later (§ 3507(c)); and a general, prime or subcontractor pays undisputed amounts owed to its subcontractors and suppliers within 15 days after receiving each payment (§ 3507(d)).",
        "releaseDeadlineDays": null,
        "releaseQuote": "This subsection shall not be construed to impair the right of an owner to include in a contract provisions that permit the owner to retain a specified percentage of each progress payment otherwise due to a contractor and each supplier for satisfactory performance under the contract.",
        "interestOrPenalty": "An interest penalty accrues on late payments from the day after the required date until payment, computed at the legal rate in effect when the obligation accrues, with unpaid interest added to principal every 30 days (6 Del. C. § 3506(c)). Retainage withheld under § 3506(a)(3) or (d) carries no interest penalty, but if a court finds the withholding was not made in good faith for reasonable cause it may award reasonable attorney's fees to the prevailing party (§ 3506(e)).",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "6 Del. C. § 3506; § 3507.",
        "statuteUrl": "https://delcode.delaware.gov/title6/c035/index.html",
        "statuteQuote": "The clause required by this subsection shall not be construed to impair the right of the owner to include in its contracts provisions which permit the owner to retain a specified percentage of each progress payment otherwise due to a contractor for satisfactory performance under the contract without incurring any obligation to incur an interest penalty, in accordance with the terms and conditions agreed to by the parties to the contract.",
        "relatedSections": [
          "6 Del. C. § 3501 (definitions)",
          "6 Del. C. § 3502 (payments impressed with trust)",
          "6 Del. C. § 3503",
          "6 Del. C. § 3507 (payments due)"
        ],
        "effectiveOrAmended": "70 Del. Laws, c. 420; 71 Del. Laws, c. 134, §§ 1-5; 74 Del. Laws, c. 357, §§ 2-4."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "29 Del. C. § 6962(d)(5)a.1 (large public works contracts): 'The percentage retained shall be 5% of the value of the work completed by the contractor under the contract.' The percentage must be stated in the bidding documents and incorporated into the contract. The agency may at its option retain only a small amount and pay out portions it deems equitable (§ 6962(d)(5)a.2), and may forfeit all or part of retainage if the contractor causes delay past the scheduled completion date (§ 6962(d)(5)a.3). A separate DelDOT rule at § 6962(c)(12)c.2.B lets a contractor below the minimum performance rating bid if it accepts variable retainage not exceeding 5%.",
        "stepDown": "Only under the DelDOT performance-rating provision: '(II) When the project is at 50% completion, the contractor may request that the retainage be reduced to 2% after an interim evaluation of the current project. (III) The project completion percentage will be based on the actual work completed, excluding money paid for stored materials.' (29 Del. C. § 6962(c)(12)c.2.B.)",
        "releaseTrigger": "On completion of the work under the contract the agency may release 60% of the amount then retained; the balance is held until all reports required by the contract are received, all subcontractors in trades listed on the bid form are paid (the agency may withhold 150% of a disputed amount), and final payment is authorized by the agency.",
        "releaseDeadlineDays": null,
        "releaseQuote": "Upon completion of the work under the contract, the agency may release 60% of the amount then retained. The balance of the amount retained will be held until: A. All reports required of the contract are received; B. All subcontractors in trades listed on the bid form are paid by the contractor … and C. Final payment is authorized by the agency.",
        "interestOrPenalty": null,
        "securitiesSubstitution": true,
        "appliesToSubs": null,
        "statute": "29 Del. C. § 6962(d)(5).",
        "statuteUrl": "https://delcode.delaware.gov/title29/c069/sc04/index.html",
        "statuteQuote": "Agencies may retain a portion of the payments to be made to a contractor for work performed pursuant to a public works contract. … The percentage retained shall be 5% of the value of the work completed by the contractor under the contract. Upon completion of the work under the contract, the agency may release 60% of the amount then retained.",
        "relatedSections": [
          "29 Del. C. § 6962(c)(12) (DelDOT performance-based rating; variable retainage)",
          "29 Del. C. § 6962(d)(5)b (agency procedures)",
          "29 Del. C. § 6962(d)(5)c (substitution of securities)",
          "29 Del. C. § 6963 (change orders)"
        ],
        "effectiveOrAmended": null
      },
      "summary": "Private Delaware jobs: no statute caps retainage or sets a release date; the Building Construction Payments chapter expressly leaves retainage to the contract, but it does require payment of everything else within 30 days (15 days down to subcontractors when the contract is silent), written notice within 7 days of why anything is withheld, and interest at the legal rate on late payments. Public Delaware jobs: the agency retains exactly 5 percent of the value of completed work, may release 60 percent of that on completion and holds the rest until reports are in, listed subcontractors are paid and final payment is authorized, and you can pull the cash out by posting Treasury securities, Delaware bonds, CDs or a letter of credit.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "de-0",
        "de-1"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "FL",
      "name": "Florida",
      "private": {
        "regulated": true,
        "capPct": null,
        "capNote": "No statutory percentage cap for private work. Fla. Stat. § 715.12(7)(a) permits an owner and contractor to 'agree to a provision that allows the owner to withhold a portion of each progress payment until substantial completion of the entire project', and § 715.12(7)(b) allows any obligor and obligee to agree to withholding until completion of the entire project. Section 715.12 applies only to written contracts to improve real property entered into after December 31, 1992 for which a construction lien is authorized under part I of chapter 713 (§ 715.12(2)).",
        "stepDown": null,
        "releaseTrigger": "The owner must pay the balance of the contract price, including the amounts withheld from progress payments, within 14 days after any of: (1) an architect or engineer certifies substantial completion under the contract and the contractor substantially completes the items on the owner's written punchlist; (2) issuance of a certificate of occupancy plus punchlist completion; or (3) the owner or its tenant takes possession plus punchlist completion. If the contract sets no time for the owner to deliver the punchlist, that period is 15 days from the certificate of substantial completion, the certificate of occupancy, or possession, whichever occurs first; if no punchlist is given in time, interest begins 14 days after that first event. For phased projects the subsection applies to each phase.",
        "releaseDeadlineDays": 14,
        "releaseQuote": "An owner and a contractor may agree to a provision that allows the owner to withhold a portion of each progress payment until substantial completion of the entire project. The owner shall pay the contractor the balance of the contract price, including the amounts withheld from the progress payments, within 14 days after any of the following events occur.",
        "interestOrPenalty": "Funds retained beyond the § 715.12(7)(a) period accrue interest at the rate specified in Fla. Stat. § 55.03 plus an additional 12 percent per annum, computed from the date payment is due to the date it is received; the same rate applies to late payments generally under § 715.12(5)(a), and the higher of the statutory or contract rate applies (§ 715.12(6)(a)). An obligee may not waive the right to receive interest before payment is due (§ 715.12(6)(d)).",
        "securitiesSubstitution": true,
        "appliesToSubs": true,
        "statute": "Fla. Stat. § 715.12 (Construction Contract Prompt Payment Law).",
        "statuteUrl": "http://web.archive.org/web/20250330085920/https://flsenate.gov/Laws/Statutes/2024/Chapter715/All",
        "statuteQuote": "An owner and a contractor may agree to a provision that allows the owner to withhold a portion of each progress payment until substantial completion of the entire project. The owner shall pay the contractor the balance of the contract price, including the amounts withheld from the progress payments, within 14 days after any of the following events occur.",
        "relatedSections": [
          "Fla. Stat. § 713.01 (definitions incorporated by § 715.12(3))",
          "Fla. Stat. § 55.03 (interest rate)",
          "Fla. Stat. § 713.06"
        ],
        "effectiveOrAmended": "Applies to written contracts entered into after December 31, 1992."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "For state and other public entities, Fla. Stat. § 255.078(1): 'With regard to any contract for construction services, a public entity may withhold from each progress payment made to the contractor an amount not exceeding 5 percent of the payment as retainage.' It does not apply to construction services paid for in whole or part with federal funds subject to contrary federal requirements (§ 255.078(5)), nor to construction services whose total contract cost is $200,000 or less (§ 255.078(6)); a 2020 note provides that the 2020 amendments to §§ 255.05 and 255.078 do not apply to contracts executed under chapter 337. Local governmental entities: Fla. Stat. § 218.735(8)(a) imposes the same 5 percent ceiling. The 20-business-day release rule is in Fla. Stat. § 255.077(4).",
        "stepDown": "Not required. § 255.078(2) and § 218.735(8)(b) permit, but do not require, a public entity to withhold at a rate below 5 percent, to reduce the rate incrementally under a schedule in the contract, or to release all or part of the retainage at any point. Retainage released to the contractor that is attributable to a subcontractor's or supplier's work must be timely remitted to them.",
        "releaseTrigger": "Punchlist-driven. The contract must provide for developing a list of incomplete items within 30 calendar days after substantial completion (up to 45 by contract for projects of $10 million or more). Within 20 business days after developing the list, and after receipt of a proper invoice or payment request, the entity must pay the remaining contract balance including retainage, less 150 percent of the estimated cost to complete the listed items; on completion of the list the contractor may request the rest. If the entity fails to develop the list on time, the contractor may bill for all remaining retainage and must be paid within 20 days (§ 255.077(9)) or 20 business days (§ 218.735(7)(j)).",
        "releaseDeadlineDays": 20,
        "releaseQuote": "Within 20 business days after developing the list, and after receipt of a proper invoice or payment request, the public entity must pay the contractor the remaining balance of the contract, including any remaining retainage withheld by the public entity pursuant to s. 255.078, less an amount equal to 150 percent of the estimated cost to complete the items on the list.",
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Fla. Stat. § 255.078 (public construction retainage, 5% cap) and § 255.077(4) (project closeout, remaining retainage paid within 20 business days); Fla. Stat. § 218.735(7)-(8) for local governmental entities.",
        "statuteUrl": "https://web.archive.org/web/20260306231612id_/https://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0255/Sections/0255.078.html",
        "statuteQuote": "With regard to any contract for construction services, a public entity may withhold from each progress payment made to the contractor an amount not exceeding 5 percent of the payment as retainage.",
        "relatedSections": [
          "Fla. Stat. § 255.077 (project closeout and payment of retainage)",
          "Fla. Stat. § 218.735(7) (local government punchlist and retainage release)",
          "Fla. Stat. § 218.735(8) (local government 5% cap)",
          "Fla. Stat. § 255.05 (payment bonds)"
        ],
        "effectiveOrAmended": "§ 255.078: s. 12, ch. 2005-230; s. 4, ch. 2020-173; s. 6, ch. 2023-134. § 255.077: s. 11, ch. 2005-230; s. 3, ch. 2020-173; s. 5, ch. 2023-134."
      },
      "summary": "Private Florida jobs: no cap on how much an owner may retain, but once the project is certified substantially complete (or a certificate of occupancy issues, or the owner takes possession) and you finish the punchlist, the owner has 14 days to pay the whole balance including retainage; after that it owes the section 55.03 rate plus 12 percent a year, and you can pull the retainage out by posting Treasury or Florida securities or insured CDs. Public Florida jobs: retainage is capped at 5 percent on both state and local government contracts (contracts of $200,000 or less are exempt from the state cap), and after the punchlist is developed the entity has 20 business days to pay everything but 150 percent of the cost to finish the listed items.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "fl-0",
        "fl-1",
        "fl-2",
        "fl-3",
        "fl-4",
        "fl-5"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "IA",
      "name": "Iowa",
      "private": {
        "regulated": false,
        "capPct": null,
        "capNote": "No statewide statute caps retainage on private Iowa construction projects. Iowa Code ch. 573, the retainage chapter, is limited by its own definitions to a 'public corporation' (the state, counties, cities, public school corporations and other bodies empowered to contract for public improvements) and to a 'public improvement' paid for from public funds.",
        "stepDown": null,
        "releaseTrigger": null,
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": null,
        "statuteUrl": null,
        "statuteQuote": "3. \"Public corporation\" shall embrace the state, and all counties, cities, public school corporations, and all officers, boards, or commissions empowered by law to enter into contracts for the construction of public improvements.",
        "relatedSections": [
          "Iowa Code § 573.1 (definitions)"
        ],
        "effectiveOrAmended": null
      },
      "public": {
        "regulated": true,
        "capPct": 3,
        "capNote": "Reduced from 5% to 3% by 2025 Iowa Acts ch. 29 (S.F. 574), effective 1 July 2025. The 3% ceiling applies both to what the public corporation retains from the contractor and to what the contractor retains from a subcontractor (the lesser of 3% or the subcontract figure). § 573.13 repeats that the retained percentage 'in no case shall be more than three percent'.",
        "stepDown": "false.",
        "releaseTrigger": "Retained fund is held for 30 days after completion and final acceptance of the improvement; if no claims are on file at the end of that period the entire unpaid fund is released to the contractor. Separately, at any time after the work is substantially completed the contractor may request early release under § 573.28, and approved retained funds must be paid at the next monthly payment or within 30 days, whichever is sooner.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "The fund provided for in section 573.13 shall be retained by the public corporation for a period of thirty days after the completion and final acceptance of the improvement. … The remaining balance of the unpaid fund, or if no claims are on file, the entire unpaid fund, shall be released and paid to the contractor.",
        "interestOrPenalty": "Late final payment: interest accrues if payment is not made within 40 days (or up to 50 days if the contract so specifies) after the work is completed and accepted and all required documentation is furnished, running from the 31st day after completion, at the § 12C.6 public-funds rate (prime plus 1% for ch. 262 institutions), § 573.14(2). Late early-release of retainage: if the retained funds are not released within 30 days of when payment becomes due, interest accrues at prime plus 1% per year until paid, § 573.28(2)(b). Late progress payments: interest under § 573.12(2)(a).",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Iowa Code §§ 573.12–573.14, 573.28.",
        "statuteUrl": "https://www.legis.iowa.gov/docs/ico/chapter/573.pdf",
        "statuteQuote": "The public corporation shall retain from each monthly payment not more than three percent of that amount that is determined to be due according to the estimate of the architect or engineer. b. The contractor may retain from each payment to a subcontractor not more than the lesser of three percent or the amount specified in the contract between the contractor and the subcontractor.",
        "relatedSections": [
          "Iowa Code § 573.13 (inviolability of the fund)",
          "Iowa Code § 573.15 (claims against retainage)",
          "Iowa Code § 573.28 (early release of retained funds; sub and lower-tier pass-through)",
          "Iowa Code § 12C.6 (interest rate)"
        ],
        "effectiveOrAmended": "2025 Iowa Acts ch. 29, §§ 1–2 (effective 1 July 2025)."
      },
      "summary": "Private: Iowa has no statewide retainage cap or release deadline for private projects; retainage is whatever the contract says. Public: a public body may retain no more than 3% of each monthly payment (and a prime may retain no more than 3% from a sub), the fund is held 30 days after completion and final acceptance and then released, and a contractor can request early release of retainage any time after substantial completion.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "ia-0"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "KS",
      "name": "Kansas",
      "private": {
        "regulated": true,
        "capPct": 5,
        "capNote": "5% default ceiling, which the owner or contractor may raise to a maximum of 10% if a higher rate 'is required to ensure performance of the contract'; the owner may also increase retainage up to 10% if the contractor or subcontractor has failed to meet the contract terms, is behind schedule, or there are workmanship problems. Subsection (i) caps withholding at 10% of any undisputed payment due.",
        "stepDown": "false.",
        "releaseTrigger": "Owner must release all remaining retainage on any undisputed payment due within 30 days after substantial completion of the project; if a contractor or subcontractor is still working, the owner may hold the portion attributable to that work until 30 days after it is completed. 'Substantial completion' is defined in K.S.A. 16-1802(i).",
        "releaseDeadlineDays": 30,
        "releaseQuote": "An owner shall release all remaining retainage on any undisputed payment due to a contractor on a construction project within 30 days after substantial completion of the project; however, if any contractor or subcontractor is still performing work on the project, an owner may withhold that portion of the retainage attributable to such work until 30 days after such work is completed.",
        "interestOrPenalty": "18% per annum, beginning on the first business day after the payment was due, payable by an owner, contractor or subcontractor that fails to pay retainage, K.S.A. 16-1804(j).",
        "securitiesSubstitution": true,
        "appliesToSubs": true,
        "statute": "K.S.A. 16-1804 (Kansas Fairness in Private Construction Contract Act, K.S.A. 16-1801 et seq.)",
        "statuteUrl": "https://ksrevisor.gov/statutes/chapters/ch16/016_018_0004.html",
        "statuteQuote": "(a) Retainage shall not exceed 5% of the value of the contract or subcontract unless the owner or contractor determines that a higher rate of retainage is required to ensure performance of the contract. Retainage, however, shall not exceed 10% of the value of the contract or subcontract.",
        "relatedSections": [
          "K.S.A. 16-1802 (definitions, including 'alternate security' and 'substantial completion')",
          "K.S.A. 16-1803 (payment terms)"
        ],
        "effectiveOrAmended": "L. 2005, ch. 156, § 4; L. 2010, ch. 128, § 2; July 1."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "Same structure as the private act: 5% default, raisable to a maximum of 10% where a higher rate is required to ensure performance, or where the contractor or subcontractor has failed to meet the contract terms, is behind schedule or shows poor workmanship.",
        "stepDown": "false.",
        "releaseTrigger": "Owner, contractor or subcontractor must release all remaining retainage on any undisputed payment due within 30 days after substantial completion of the project, as part of the regular payment cycle; retainage attributable to work still being performed may be held until 30 days after that work is completed.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "An owner, contractor or subcontractor must release all remaining retainage on any undisputed payment due on a construction project within 30 days after substantial completion of the project as part of the regular payment cycle; however, if any contractor or subcontractor is still performing work on the project, an owner may withhold that portion of the retainage attributable to such work until 30 days after such work is completed.",
        "interestOrPenalty": "18% per annum from the first business day after the payment was due, K.S.A. 16-1904(i).",
        "securitiesSubstitution": true,
        "appliesToSubs": true,
        "statute": "K.S.A. 16-1904 (Kansas Fairness in Public Construction Contract Act, K.S.A. 16-1901 et seq.)",
        "statuteUrl": "https://ksrevisor.gov/statutes/chapters/ch16/016_019_0004.html",
        "statuteQuote": "(a) Retainage shall not exceed 5% of the value of the contract or subcontract unless the owner or contractor determines that a higher rate of retainage is required to ensure performance of the contract. Retainage, however, shall not exceed 10% of the value of the contract or subcontract.",
        "relatedSections": [
          "K.S.A. 16-1902 (definitions, including 'alternate security')"
        ],
        "effectiveOrAmended": "L. 2007, ch. 163, § 4; L. 2010, ch. 128, § 4; July 1."
      },
      "summary": "Private: retainage is capped at 5% of the contract or subcontract (up to 10% if performance is at risk), must be released within 30 days after substantial completion, and late retainage carries 18% annual interest. Public: the public-contract act is worded almost identically (5% (10% ceiling), release within 30 days after substantial completion, 18% interest), and both acts let a contractor or subcontractor offer alternate security in lieu of retainage before work starts.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "ks-0",
        "ks-1",
        "ks-2"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "KY",
      "name": "Kentucky",
      "private": {
        "regulated": true,
        "capPct": 10,
        "capNote": "KRS 371.410: a contracting entity, contractor or subcontractor may withhold no more than 10% retainage until the construction project is 50% complete, and retainage held after 51% completion may not exceed 5% of the total contract amount. On release the payer may hold back 200% of the estimated cost of the remaining work, and retainage received must be passed down within 15 business days.",
        "stepDown": "Yes: retainage held after 51% completion of the construction project may not exceed 5% of the total contract amount.",
        "releaseTrigger": "Substantial completion of the construction project.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "Within thirty (30) days after substantial completion ... the contracting entity or contractor shall release the retainage",
        "interestOrPenalty": "Unpaid retainage accrues interest at 12% per annum.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "KRS 371.410 (Kentucky Fairness in Construction Act, KRS 371.400–371.990).",
        "statuteUrl": "https://web.archive.org/web/20260410091839id_/https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35259",
        "statuteQuote": "until fifty percent (50%) of the construction project has been completed ... a contracting entity, contractor, or subcontractor may withhold no more than ten percent (10%) retainage from the amount of any undisputed payment due, and retainage held after fifty-one percent (51%) of the construction project has been completed shall not be more than five percent (5%) of the total contract amount.",
        "relatedSections": [
          "KRS 371.400 (scope)"
        ],
        "effectiveOrAmended": "Effective June 26, 2007; created by 2007 Ky. Acts ch. 136, § 3."
      },
      "public": {
        "regulated": true,
        "capPct": 10,
        "capNote": "KRS 371.410: a contracting entity, contractor or subcontractor may withhold no more than 10% retainage until the construction project is 50% complete, and retainage held after 51% completion may not exceed 5% of the total contract amount. On release the payer may hold back 200% of the estimated cost of the remaining work, and retainage received must be passed down within 15 business days.",
        "stepDown": "Yes: retainage held after 51% completion of the construction project may not exceed 5% of the total contract amount.",
        "releaseTrigger": "Substantial completion of the construction project.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "Within thirty (30) days after substantial completion ... the contracting entity or contractor shall release the retainage",
        "interestOrPenalty": "Unpaid retainage accrues interest at 12% per annum.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "KRS 371.410 (Kentucky Fairness in Construction Act, KRS 371.400–371.990).",
        "statuteUrl": "https://web.archive.org/web/20260410091839id_/https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35259",
        "statuteQuote": "until fifty percent (50%) of the construction project has been completed ... a contracting entity, contractor, or subcontractor may withhold no more than ten percent (10%) retainage from the amount of any undisputed payment due, and retainage held after fifty-one percent (51%) of the construction project has been completed shall not be more than five percent (5%) of the total contract amount.",
        "relatedSections": [],
        "effectiveOrAmended": "Effective June 26, 2007; created by 2007 Ky. Acts ch. 136, § 3."
      },
      "summary": "Private: Kentucky lets a payer hold 10% retainage until the job is half done and no more than 5% of the total contract amount after 51% completion, and the retainage must be released within 30 days after substantial completion, less 200% of the cost of the remaining work. Public: the same section reaches contracting entities generally, so the same 10%/5% cap and 30-day release apply, retainage must be passed down within 15 business days, and unpaid retainage carries 12% per annum interest.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "ky-0"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "MD",
      "name": "Maryland",
      "private": {
        "regulated": true,
        "capPct": 5,
        "capNote": "The 5% ceiling applies where the contractor has furnished 100% performance security and 100% payment security; it caps both the retention across the contract and the retention from any single payment. The section does not apply to a contract under $100,000 or to a project funded wholly or partly by or through the Department of Housing and Community Development. Amounts beyond retainage may still be withheld for reasonable grounds relating to performance.",
        "stepDown": "false.",
        "releaseTrigger": "Undisputed retention proceeds retained by an owner must be paid within 90 days after the date of substantial completion, as substantial completion is defined by the applicable contract or subcontract.",
        "releaseDeadlineDays": 90,
        "releaseQuote": "Undisputed retention proceeds retained by an owner under this section shall be paid within 90 days after the date of substantial completion, as defined by the applicable contract or subcontract.",
        "interestOrPenalty": "No fixed statutory rate. Under Md. Code, Real Prop. § 9-303 a court may award equitable relief for prompt payment of undisputed amounts (which expressly include retention proceeds exceeding the authorized amount), interest from the date the amount was due, and reasonable costs; if the court finds bad faith it may award reasonable attorney's fees.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Md. Code, Real Property § 9-304 (Retention proceeds).",
        "statuteUrl": "https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp&section=9-304&enactments=false",
        "statuteQuote": "If a contractor has furnished 100% security to guarantee the performance of a contract and 100% security to guarantee payment for labor and materials, including leased equipment: (i) The retention proceeds under the terms of a contract may not exceed 5% of the contract price; and (ii) The retention proceeds of any payment due under the terms of a contract from an owner to a contractor may not exceed 5% of the payment.",
        "relatedSections": [
          "Md. Code, Real Prop. § 9-301 (definitions)",
          "Md. Code, Real Prop. § 9-302 (prompt payment of undisputed amounts)",
          "Md. Code, Real Prop. § 9-303 (remedies, interest, attorney's fees)"
        ],
        "effectiveOrAmended": null
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "Where the contractor has furnished 100% payment security and 100% performance security, 'the percentage specified in the contract for retainage may not exceed 5% of the total amount of the contract'. Public bodies may still withhold additional amounts reasonably believed necessary to protect the public body's interest. State procurement units and the Maryland Transportation Authority are governed by the parallel § 13-225, which also permits retainage to be placed in an interest-bearing escrow under § 15-108 with interest paid pro rata.",
        "stepDown": "false.",
        "releaseTrigger": "Within 120 days after satisfactory completion of a contract for construction the public body must release any retainage due; if there is a dispute or contract claim about satisfactory completion, within 120 days after the dispute or claim is resolved.",
        "releaseDeadlineDays": 120,
        "releaseQuote": "Except as provided in paragraph (4) of this subsection, within 120 days after satisfactory completion of a contract for construction, a public body shall release any retainage due to the contractor.",
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Md. Code, State Finance & Procurement § 17-110.",
        "statuteUrl": "https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gsf&section=17-110&enactments=false",
        "statuteQuote": "If a contractor has furnished 100% payment security and 100% performance security in accordance with this subtitle under a contract for construction awarded by a public body, the percentage specified in the contract for retainage may not exceed 5% of the total amount of the contract.",
        "relatedSections": [
          "Md. Code, State Fin. & Proc. § 13-225 (State procurement contracts and the Maryland Transportation Authority; escrow of retainage)",
          "Md. Code, State Fin. & Proc. § 15-108 (interest-bearing escrow)"
        ],
        "effectiveOrAmended": null
      },
      "summary": "Private: on a fully bonded private job of $100,000 or more the owner may retain no more than 5%, a prime may not retain a higher percentage from a sub than the owner retains from it, and undisputed retention must be paid within 90 days after substantial completion as the contract defines it. Public: retainage on a fully bonded public contract is likewise capped at 5% and must be released within 120 days after satisfactory completion (or 120 days after a completion dispute is resolved); for State units the money may sit in an interest-bearing escrow with interest paid out pro rata.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "md-0",
        "md-1",
        "md-2",
        "md-3",
        "md-4"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "ME",
      "name": "Maine",
      "private": {
        "regulated": true,
        "capPct": null,
        "capNote": "Maine's construction-contract chapter sets no percentage ceiling on retainage: it regulates only when retainage must be paid out. The chapter applies to any 'construction contract' for work on real property, but not to contracts entered into by the Department of Transportation (§ 1112) and not to a person buying materials for work on that person's own real property (§ 1120).",
        "stepDown": null,
        "releaseTrigger": "Amounts retained during performance and due to be released on completion must be paid within 30 days after final acceptance of the work.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "If payments under a construction contract are subject to retainage, any amounts retained during the performance of the contract and due to be released to the contractor upon completion must be paid within 30 days after final acceptance of the work.",
        "interestOrPenalty": "Where arbitration or litigation is commenced and non-compliance is found, the arbitrator or court 'shall award an amount equal to 1% per month of all sums for which payment has wrongfully been withheld, in addition to all other damages due and as a penalty' (§ 1118(2)), plus reasonable attorney's fees and expenses to the substantially prevailing party (§ 1118(4)). Unreasonably withholding acceptance of work, or failing to pay retainage, triggers those provisions (§ 1116(4)).",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "10 M.R.S. § 1116 (Chapter 201-A, Construction Contracts).",
        "statuteUrl": "https://web.archive.org/web/20250603185848id_/https://legislature.maine.gov/statutes/10/title10sec1116.html",
        "statuteQuote": "Notwithstanding any contrary agreement, a contractor shall pay to its subcontractors or material suppliers and each subcontractor shall in turn pay to its subcontractors or material suppliers, within 7 days after receipt of the retainage, the full amount due to each subcontractor or material supplier.",
        "relatedSections": [
          "10 M.R.S. § 1111 (definitions)",
          "10 M.R.S. § 1112 (application: excludes DOT contracts)",
          "10 M.R.S. § 1118 (disputes; penalties; attorney's fees)",
          "10 M.R.S. § 1120 (owner exclusion)"
        ],
        "effectiveOrAmended": "PL 1993, c. 461, § 1 (enacted); § 1118 unchanged since."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "For State public improvement contracts, 5 M.R.S. § 1746 requires the State to withhold 5% of money due the contractor until the project has been accepted, with discretion to reduce the amount withheld after substantial completion on request. Chapter 201-A of Title 10 also applies to public owners because its definition of 'owner' (10 M.R.S. § 1111(6)) expressly includes the State, municipalities, school districts and school administrative districts, so the 30-day release rule of 10 M.R.S. § 1116 covers public work too, except Department of Transportation contracts.",
        "stepDown": "false.",
        "releaseTrigger": "5 M.R.S. § 1746: the 5% is withheld 'until the project under the contract has been accepted by or for the State', and after substantial completion the State may, on request, further reduce the amounts withheld if it deems that desirable and prudent. 10 M.R.S. § 1116(1): retainage must be paid within 30 days after final acceptance of the work.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "If payments under a construction contract are subject to retainage, any amounts retained during the performance of the contract and due to be released to the contractor upon completion must be paid within 30 days after final acceptance of the work.",
        "interestOrPenalty": "For contracts within Title 10 ch. 201-A: 1% per month penalty plus attorney's fees under 10 M.R.S. § 1118. 5 M.R.S. § 1746 itself specifies no interest.",
        "securitiesSubstitution": true,
        "appliesToSubs": true,
        "statute": "5 M.R.S. § 1746 (5% state withholding); 10 M.R.S. § 1116 (30-day release); 10 M.R.S. § 1111(6) ('owner' includes the State and its subdivisions).",
        "statuteUrl": "https://web.archive.org/web/20250531091527id_/https://legislature.maine.gov/statutes/5/title5sec1746.html",
        "statuteQuote": "In any contract awarded for any public improvement the State shall withhold 5% of the money due the contractor until the project under the contract has been accepted by or for the State, except that when the contract has been substantially completed the State may, upon request, further reduce the amounts withheld if it deems it desirable and prudent.",
        "relatedSections": [
          "5 M.R.S. § 1743 (public improvement construction contracts)",
          "10 M.R.S. § 1112 (DOT contracts excluded from ch. 201-A)"
        ],
        "effectiveOrAmended": "5 M.R.S. § 1746 last amended PL 2025, c. 390, Pt. A, § 9 (custodial-services paragraph); earlier paragraphs PL 1971, c. 593, § 22 and PL 1967, c. 437."
      },
      "summary": "Private: Maine sets no percentage cap on private retainage, but whatever is retained must be paid within 30 days after final acceptance, subcontractors must be paid their share within 7 days of the contractor receiving it, and wrongful withholding carries a 1%-per-month penalty plus attorney's fees. Public: the State withholds 5% on public improvement contracts until the project is accepted (reducible after substantial completion on request), a contractor may substitute Treasury or Maine bonds and notes for the retained money, and the same 30-day release rule applies to state and municipal owners, but not to Department of Transportation contracts.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "me-0",
        "me-1",
        "me-2",
        "me-3",
        "me-4",
        "me-5",
        "me-6",
        "me-7",
        "me-8"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "MI",
      "name": "Michigan",
      "private": {
        "regulated": null,
        "capPct": null,
        "capNote": null,
        "stepDown": null,
        "releaseTrigger": null,
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": null,
        "statuteUrl": null,
        "statuteQuote": null,
        "relatedSections": [],
        "effectiveOrAmended": null
      },
      "public": {
        "regulated": true,
        "capPct": 10,
        "capNote": "MCL 125.1563(2) limits retainage to not more than 10% of the dollar value of all work in place until the work is 50% in place; after 50% in place no additional retainage may be withheld unless the public agency determines that the contractor is not making satisfactory progress.",
        "stepDown": "Yes: retainage stops accruing once the work is 50% in place, unless the public agency finds progress unsatisfactory.",
        "releaseTrigger": "Except as provided in section 4(7) and (8) of the Act, retainage and the interest earned on it are released to the contractor together with the final progress payment.",
        "releaseDeadlineDays": null,
        "releaseQuote": "Except as provided in section 4(7) and (8), retainage and interest earned on retainage shall be released to a contractor together with the final progress payment.",
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": "MCL 125.1563 (1980 PA 524).",
        "statuteUrl": "https://web.archive.org/web/20250222223512id_/https://www.legislature.mi.gov/documents/mcl/pdf/mcl-Act-524-of-1980.pdf",
        "statuteQuote": "(2) The retainage shall be limited to the following: (a) Not more than 10% of the dollar value of all work in place until work is 50% in place. (b) After the work is 50% in place, additional retainage shall not be withheld unless the public agency determines that the contractor is not making satisfactory progress",
        "relatedSections": [
          "MCL 125.1561 (definitions)",
          "MCL 125.1564 (dispute resolution for retained funds)"
        ],
        "effectiveOrAmended": null
      },
      "summary": "Public work: a public agency may hold no more than 10% of the dollar value of work in place until the job is 50% in place, after which no further retainage may be withheld unless progress is found unsatisfactory; retainage and the interest earned on it are released with the final progress payment. This record covers public work only.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "mi-0",
        "mi-1"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "MN",
      "name": "Minnesota",
      "private": {
        "regulated": true,
        "capPct": 5,
        "capNote": "'Retainage on a building and construction contract may not exceed five percent.' Nothing requires retainage to be withheld at all, and an owner may reduce or eliminate it if work is progressing satisfactorily, but if the owner reduces its rate the contractor must reduce subcontractor retainage at the same rate. Withholding retainage for warranty work is prohibited. The subdivision does not apply to a public agency as defined in § 15.71, subd. 3, or to contracts for professional services under §§ 326.02–326.15.",
        "stepDown": "false.",
        "releaseTrigger": "All retainage must be released no later than 60 days after substantial completion, with 'substantial completion' determined as provided in § 541.051, subd. 1(a). After substantial completion the owner may still withhold up to 250% of the cost to correct or complete work known at that time (payable within 60 days after that work is completed) plus 1% of contract value or $500, whichever is greater, pending final paperwork (payable within 60 days after the paperwork is submitted).",
        "releaseDeadlineDays": 60,
        "releaseQuote": "The owner or the owner's agent must release all retainage no later than 60 days after substantial completion subject to the terms of this subdivision. For purposes of this subdivision, \"substantial completion\" shall be determined as provided in section 541.051, subdivision 1, paragraph (a).",
        "interestOrPenalty": "Minn. Stat. § 337.10, subd. 3 deems the contract to require interest of 1.5% per month on any undisputed amount not paid on time in the prime-to-subcontractor chain, expressly 'including payments under subdivision 4' (retainage), with a $10 minimum monthly penalty for balances of $100 or more, costs and attorney fees to a prevailing claimant, and a right to suspend work if undisputed payment is not received within ten days. No interest rate is specified for an owner's late release to the prime contractor.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Minn. Stat. § 337.10, subd. 4.",
        "statuteUrl": "https://www.revisor.mn.gov/statutes/cite/337.10",
        "statuteQuote": "Retainage on a building and construction contract may not exceed five percent. An owner or owner's agent may reduce the amount of retainage and may eliminate retainage on any monthly contract payment if, in the owner's opinion, the work is progressing satisfactorily. If the owner reduces the amount of retainage, the contractor must reduce retainage for any subcontractors at the same rate.",
        "relatedSections": [
          "Minn. Stat. § 337.10, subd. 3 (prompt payment to subcontractors; 1.5% per month)",
          "Minn. Stat. § 541.051, subd. 1(a) (definition of substantial completion)",
          "Minn. Stat. § 15.71, subd. 3 (public agency: carve-out)"
        ],
        "effectiveOrAmended": "History: 1997 c 127 s 1; 1998 c 289 s 1,2; 1999 c 116 s 2; 2007 c 140 art 8 s 30, art 13 s 4; 2009 c 66 s 1,2; 2016 c 133 s 1,2; 1Sp2019 c 7 art 9 s 13."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "A public contracting agency 'may reserve as retainage from any progress payment on a public contract for a public improvement an amount not to exceed five percent of the payment', and may reduce or eliminate it if the work is progressing satisfactorily. Withholding retainage for warranty work is prohibited. For federally or state-aided projects the agency need not pay the aided portion until the aid is received.",
        "stepDown": "false.",
        "releaseTrigger": "All retainage must be released no later than 60 days after substantial completion ('substantial completion' per § 541.051, subd. 1(a); for street and highway work including bridges, the date when construction-related traffic devices and ongoing inspections are no longer required). After substantial completion the agency may still withhold up to 250% of the cost to correct or complete known work, plus 1% of contract value or $500, whichever is greater, pending final paperwork, each payable within 60 days.",
        "releaseDeadlineDays": 60,
        "releaseQuote": "The public contracting agency must release all retainage no later than 60 days after substantial completion, subject to the terms of this subdivision. If the public contracting agency reduces the amount of retainage, the contractor must reduce retainage for any subcontractors at the same rate.",
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Minn. Stat. § 15.72, subd. 2.",
        "statuteUrl": "https://www.revisor.mn.gov/statutes/cite/15.72",
        "statuteQuote": "A public contracting agency may reserve as retainage from any progress payment on a public contract for a public improvement an amount not to exceed five percent of the payment. A public contracting agency may reduce the amount of the retainage and may eliminate retainage on any monthly contract payment if, in the agency's opinion, the work is progressing satisfactorily.",
        "relatedSections": [
          "Minn. Stat. § 15.71 (definitions)",
          "Minn. Stat. § 541.051, subd. 1(a) (substantial completion)",
          "Minn. Stat. § 15.72, subd. 1a (new, added by 2026 c 90 s 1)"
        ],
        "effectiveOrAmended": "History: 1980 c 464 s 2; 1Sp2019 c 7 art 9 s 1; 2023 c 53 art 7 s 3. The Revisor's page carries a notice that § 15.72 has been affected by law enacted during the 2026 Regular Session (subd. 1a added by 2026 c 90 s 1)."
      },
      "summary": "Private: retainage may not exceed 5%, must be released in full no later than 60 days after substantial completion, cannot be held for warranty work, and must reach subcontractors within ten days of the contractor being paid, with 1.5% monthly interest running down the subcontract chain on undisputed late amounts. Public: the same 5% ceiling and 60-day release deadline apply to public contracting agencies, with the same 250%-of-punch-list and 1%-or-$500 final-paperwork carve-outs.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "mn-0",
        "mn-1"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "MO",
      "name": "Missouri",
      "private": {
        "regulated": false,
        "capPct": null,
        "capNote": "Missouri's private construction payment statute, § 431.180, requires only that scheduled payments be made according to the contract; it contains no retainage cap, no release deadline and no retainage-specific rule. It does not apply to contracts for building, improving, repairing or remodeling owner-occupied residential property of four units or less. Missouri's retainage rules (§ 8.960) are limited by their terms to public works contracts awarded by the state, a political subdivision or a district.",
        "stepDown": null,
        "releaseTrigger": null,
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": "Under § 431.180.2 a party not paid in accordance with the contract may sue, and the court may award interest of up to 1.5% per month from the date payment was due plus reasonable attorney fees to the prevailing party; an arbitrator under § 435.350 may award the same remedies. This is a general non-payment remedy, not a retainage rule.",
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": "Mo. Rev. Stat. § 431.180 (no retainage provision).",
        "statuteUrl": "https://revisor.mo.gov/main/OneSection.aspx?section=431.180",
        "statuteQuote": "All persons who enter into a contract for private design or construction work after August 28, 1995, shall make all scheduled payments pursuant to the terms of the contract.",
        "relatedSections": [
          "Mo. Rev. Stat. § 435.350 (arbitration)"
        ],
        "effectiveOrAmended": "L. 1995 S.B. 93, A.L. 1999 H.B. 343, effective 28 August 1999."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "'Retainage withheld on any construction contract or subcontract for public works projects shall not exceed five percent of the value of the contract or subcontract.' Where no bond is required under § 107.170 because the contract is not estimated to exceed $50,000, the public owner may withhold up to 10%. A public owner may reduce or eliminate retainage on any payment if the work is proceeding satisfactorily, and where a subcontractor's work is complete the contractor may request an adjustment so the sub can be paid in full before substantial completion.",
        "stepDown": "false.",
        "releaseTrigger": "The public owner must pay at least 98% of the retainage, less authorized offsets, and payment to the subcontractor or supplier follows substantial completion of the contract work and acceptance by the public owner's authorized contract representative; that payment is due within 30 days after acceptance once the invoice and required documentation are in complete and acceptable form. If the owner decides the work is not substantially complete and accepted, it must give a written explanation within 14 calendar days; if it does not, it must pay at least 98% of the retainage within 30 calendar days. Where minor items remain, 150% of the value of each item may be withheld until completed. Final payment of all money owed, including retainage, is due within 30 days of the due date.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "The public owner shall pay at least ninety-eight percent of the retainage, less any offsets or deductions authorized in the contract or otherwise authorized by law, to the contractor. … Such payment shall be made within thirty days after acceptance, and the invoice and all other appropriate documentation and certifications in complete and acceptable form are provided, as may be required by the contract documents.",
        "interestOrPenalty": "1.5% per month. If the contractor is not paid within the 30-day progress-payment window the contracting agency owes interest at 1.5% per month from the expiration of that period until paid (§ 8.960.1(5)); a contractor that without reasonable cause fails to pay subcontractors and suppliers within 15 days of receiving payment owes them 1.5% per month, and that rule runs down the whole contracting chain (§ 8.960.1(7)). No interest is due on amounts withheld in good faith for reasonable cause, but a court that finds a withholding was not in good faith may impose 1.5% per month from the invoice date and award attorney fees.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Mo. Rev. Stat. § 8.960 (formerly § 34.057).",
        "statuteUrl": "https://revisor.mo.gov/main/OneSection.aspx?section=8.960",
        "statuteQuote": "Retainage withheld on any construction contract or subcontract for public works projects shall not exceed five percent of the value of the contract or subcontract. If the contractor is not required to obtain a bond under section 107.170… the public owner may withhold retainage on the public works project in an amount not to exceed ten percent of the value of the contract or subcontract.",
        "relatedSections": [
          "Mo. Rev. Stat. § 107.170 (public works bonds; the $50,000 threshold)",
          "Mo. Rev. Stat. § 34.057 (transferred to § 8.960 in 2022)"
        ],
        "effectiveOrAmended": "L. 2022 S.B. 758; transferred 2022, formerly § 34.057, effective 28 August 2022."
      },
      "summary": "Private: Missouri does not cap retainage or set a release deadline on private jobs; § 431.180 only requires payment on the contract's schedule, with up to 1.5% monthly interest and attorney fees available in court if it is not paid. Public: retainage on public works is capped at 5% of the contract or subcontract (10% on small jobs with no bond required), at least 98% must be paid within 30 days after substantial completion and acceptance with documentation, 150% of the value of remaining minor items may be held back, and late payment carries 1.5% per month.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "mo-0",
        "mo-1",
        "mo-2"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "MS",
      "name": "Mississippi",
      "private": {
        "regulated": true,
        "capPct": 5,
        "capNote": "Mississippi enacted a private-project retainage cap in 2024. No more than 5% of the estimated amount of work properly done (plus the value of materials stored on site or suitably stored and insured off-site) may be retained, at every tier: owner from contractor, contractor from subcontractor, subcontractor from sub-subcontractor or supplier. The 5% applies to all items of work required to achieve final completion. The section does not apply to residential homebuilding, improvements intended for residential purposes of 16 or fewer units, contracts of $10,000 or less, or contracts awarded by the State or any political subdivision. The rights created cannot be waived by oral or written agreement.",
        "stepDown": "false.",
        "releaseTrigger": "The owner must release and pay retainage to the contractor no later than 60 days after the final completion of the contractor's work, provided all necessary certificates of occupancy have been issued. 'Final completion' is defined as the stage at which all work is complete in accordance with the contract, including punch list items, contractual close-out documents, equipment manuals, warranty documents and other like required deliverables. Contractors and subcontractors release down the chain per Miss. Code § 87-7-5.",
        "releaseDeadlineDays": 60,
        "releaseQuote": "The owner shall release and pay retainage to the contractor for work completed on any construction contract no later than sixty (60) days after the final completion of the contractor's work provided all necessary certificates of occupancy have been issued.",
        "interestOrPenalty": "Interest at 1% per month on any amount withheld above the 5% ceiling, payable by whichever tier over-withheld; the right to that interest cannot be waived by contract. A contractor, subcontractor or sub-subcontractor may sue the party in direct contractual privity, and the party in whose favor judgment is rendered recovers reasonable attorneys' fees, court costs and reasonable expenses.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "2024 Miss. Laws ch. 387, § 1 (S.B. 2762), new free-standing section; the bill does not assign a Mississippi Code section number.",
        "statuteUrl": "http://billstatus.ls.state.ms.us/documents/2024/pdf/SB/2700-2799/SB2762SG.pdf",
        "statuteQuote": "However, there may not be retained more than five percent (5%) of the estimated amount of work properly done and the value of materials stored on the site or suitably stored and insured off-site. If an owner withholds an amount greater than that allowed by this paragraph (a), the owner shall be liable to the contractor for interest accruing on the excess amount withheld at the rate of one percent (1%) per month.",
        "relatedSections": [
          "Miss. Code § 87-7-5 (timing of pass-through payments to subcontractors)",
          "Article 21, Title 85, Chapter 7 (mechanics and materialmen liens, expressly not modified)"
        ],
        "effectiveOrAmended": "Applies to contracts entered into on or after July 1, 2024 (2024 Miss. Laws ch. 387, § 1(10); act approved by the Governor 19 April 2024, effective 1 July 2024)."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "Retainage on a state or political-subdivision construction contract 'shall be five percent (5%)', and the amount a prime retains from a subcontractor may not exceed the percentage the public body withholds from the prime. On a contract of $250,000 or more (or any subcontract, regardless of amount) 5% is retained until the work is at least 50% complete, on schedule and satisfactory in the architect's and/or engineer's opinion, at which point half of the retainage held to date is returned and future retainage drops to 2.5%. The section does not apply to Mississippi Transportation Commission road and bridge contracts.",
        "stepDown": "true.",
        "releaseTrigger": null,
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": null,
        "securitiesSubstitution": true,
        "appliesToSubs": true,
        "statute": "Miss. Code § 31-5-33, as amended by 2024 Miss. Laws ch. 387, § 3 (S.B. 2762).",
        "statuteUrl": "http://billstatus.ls.state.ms.us/documents/2024/pdf/SB/2700-2799/SB2762SG.pdf",
        "statuteQuote": "…such retainage shall be five percent (5%)… five percent (5%) shall be retained until the work is at least fifty percent (50%) complete, on schedule and satisfactory in the architect's and/or engineer's opinion, at which time fifty percent (50%) of the retainage held to date shall be returned to the prime contractor… Provided, however, that future retainage shall be withheld at the rate of two and one-half percent (2-1/2%).",
        "relatedSections": [
          "Miss. Code § 31-5-15 (substitution of securities for retainage, also amended by 2024 ch. 387, § 2)"
        ],
        "effectiveOrAmended": "2024 Miss. Laws ch. 387, §§ 3–4 (S.B. 2762), effective 1 July 2024."
      },
      "summary": "Private: since 1 July 2024 no Mississippi private construction contract may retain more than 5% at any tier, over-withholding earns 1% per month interest that cannot be waived, and the owner must pay retainage within 60 days after final completion once the certificates of occupancy are issued, with carve-outs for residential homebuilding, projects of 16 or fewer residential units, and contracts of $10,000 or less. Public: retainage on state and local contracts is 5%, and on jobs of $250,000 or more (and on every subcontract) half the retainage is returned once the work is 50% complete and on schedule, with future retainage at 2.5%; road and bridge contracts of the Mississippi Transportation Commission are excluded.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "ms-0",
        "ms-1"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "MT",
      "name": "Montana",
      "private": {
        "regulated": true,
        "capPct": 5,
        "capNote": "Flat 5% ceiling on any construction contract subject to Title 28, ch. 2, part 21. Part 21 covers both private and governmental owners; it does not apply to residential projects/improvements intended for residential purposes costing less than $400,000 (28-2-2107).",
        "stepDown": "false.",
        "releaseTrigger": "Final acceptance of each portion of work for which a separate price is stated in the construction contract. The statute sets no day count for releasing retainage; the general payment clock in 28-2-2103 is 7 days after a payment request is approved (a request is deemed approved 21 days after receipt absent written disapproval).",
        "releaseDeadlineDays": null,
        "releaseQuote": "Retainage must be released upon the final acceptance of each portion of work for which a separate price is stated in the construction contract.",
        "interestOrPenalty": "28-2-2104: interest of 1 1/2% a month (or a pro rata fraction) on the unpaid balance, running from the day after the payment was due, when payment is delayed more than 30 days.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Mont. Code Ann. § 28-2-2110.",
        "statuteUrl": "https://mca.legmt.gov/bills/mca/title_0280/chapter_0020/part_0210/section_0100/0280-0020-0210-0100.html",
        "statuteQuote": "The maximum retainage applied to construction contracts subject to the provisions of this part may not exceed 5%. The retainage percentage withheld by an owner, as provided in subsection (1), from a construction contractor is the maximum retainage that a construction contractor may withhold from a subcontractor.",
        "relatedSections": [
          "Mont. Code Ann. § 28-2-2101 (definitions: \"owner\" = governmental entity or private entity)",
          "Mont. Code Ann. § 28-2-2103 (payment deadlines)",
          "Mont. Code Ann. § 28-2-2104 (interest on delayed payment)",
          "Mont. Code Ann. § 28-2-2107 (residential exception under $400,000)"
        ],
        "effectiveOrAmended": "Enacted by Sec. 1, Ch. 364, L. 2001; amended by Sec. 2, Ch. 244, L. 2005."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "Flat 5% ceiling on any construction contract subject to Title 28, ch. 2, part 21. Part 21 covers both private and governmental owners; it does not apply to residential projects/improvements intended for residential purposes costing less than $400,000 (28-2-2107). Part 21's definition of \"owner\" expressly includes a governmental entity, so the same 5% ceiling applies to state and local public work under this part.",
        "stepDown": "false.",
        "releaseTrigger": "Final acceptance of each portion of work for which a separate price is stated in the construction contract. The statute sets no day count for releasing retainage; the general payment clock in 28-2-2103 is 7 days after a payment request is approved (a request is deemed approved 21 days after receipt absent written disapproval).",
        "releaseDeadlineDays": null,
        "releaseQuote": "Retainage must be released upon the final acceptance of each portion of work for which a separate price is stated in the construction contract.",
        "interestOrPenalty": "28-2-2104: interest of 1 1/2% a month (or a pro rata fraction) on the unpaid balance, running from the day after the payment was due, when payment is delayed more than 30 days.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Mont. Code Ann. § 28-2-2110.",
        "statuteUrl": "https://mca.legmt.gov/bills/mca/title_0280/chapter_0020/part_0210/section_0100/0280-0020-0210-0100.html",
        "statuteQuote": "The maximum retainage applied to construction contracts subject to the provisions of this part may not exceed 5%. The retainage percentage withheld by an owner, as provided in subsection (1), from a construction contractor is the maximum retainage that a construction contractor may withhold from a subcontractor.",
        "relatedSections": [
          "Mont. Code Ann. § 28-2-2101 (definitions: \"owner\" = governmental entity or private entity)",
          "Mont. Code Ann. § 28-2-2103 (payment deadlines)",
          "Mont. Code Ann. § 28-2-2104 (interest on delayed payment)",
          "Mont. Code Ann. § 28-2-2107 (residential exception under $400,000)"
        ],
        "effectiveOrAmended": "Enacted by Sec. 1, Ch. 364, L. 2001; amended by Sec. 2, Ch. 244, L. 2005."
      },
      "summary": "Private: retainage on a Montana construction contract may not exceed 5%, a general contractor may not hold back more from a subcontractor than the owner holds from it, and retainage must be released as each separately priced portion of the work is finally accepted; residential work under $400,000 is exempt. Public: the same part applies to governmental owners, so the 5% cap and the same release rule govern state and local projects.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "mt-0",
        "mt-1",
        "mt-2",
        "mt-3",
        "mt-4",
        "mt-5"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "NC",
      "name": "North Carolina",
      "private": {
        "regulated": true,
        "capPct": null,
        "capNote": "No North Carolina statute caps retainage on private construction. The only statutory limit is a pass-through rule: under G.S. 22C-4 a contractor may withhold from a subcontractor 'a reasonable amount for retainage not to exceed the initial percentage retained by the owner'. Chapter 22C does not apply to residential contractors as defined in G.S. 87-10(1a), or to residential improvements of 12 or fewer units (G.S. 22C-6).",
        "stepDown": null,
        "releaseTrigger": "The contractor's receipt of each periodic or final payment from the owner. The seven-day deadline is for paying subcontractors; Chapter 22C sets no date for the owner's release of retainage.",
        "releaseDeadlineDays": 7,
        "releaseQuote": "When a subcontractor has performed in accordance with the provisions of his contract, the contractor shall pay to his subcontractor and each subcontractor shall pay to his subcontractor, within seven days of receipt by the contractor or subcontractor of each periodic or final payment, the full amount received for such subcontractor's work and materials ...",
        "interestOrPenalty": "G.S. 22C-5: payment delayed more than seven days after the contractor or subcontractor is paid bears interest at 1% per month or fraction thereof on the unpaid balance, beginning on the eighth day.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "N.C. Gen. Stat. ch. 22C (Payments to Subcontractors), §§ 22C-3, 22C-4, 22C-5, 22C-6.",
        "statuteUrl": "https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/ByChapter/Chapter_22C.html",
        "statuteQuote": "Nothing in this Chapter shall prevent the contractor ... from withholding such application and certification to the owner for payment to the subcontractor for: ... or a reasonable amount for retainage not to exceed the initial percentage retained by the owner.",
        "relatedSections": [
          "N.C. Gen. Stat. § 22C-1 (definitions)",
          "N.C. Gen. Stat. § 22C-2 (pay-when-paid unenforceable)"
        ],
        "effectiveOrAmended": "1987 (Reg. Sess., 1988), c. 946; § 22C-2 amended 1991, c. 620."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "No retainage at all is allowed where total project costs are under $100,000. At or above $100,000 the owner may not retain more than 5% of any periodic payment. Applies to public construction contracts let by the State or any political subdivision, except contracts let by the Department of Transportation under G.S. 136-28.1.",
        "stepDown": "true.",
        "releaseTrigger": "Submission of a pay request plus either the owner's receipt of a certificate of substantial completion from the architect/engineer/designer, or the owner's beneficial occupancy or use of the project.",
        "releaseDeadlineDays": 60,
        "releaseQuote": "Within 60 days after the submission of a pay request and one of the following occurs, as specified in the contract documents, the owner with written consent of the surety shall release to the contractor all retainage on payments held by the owner: (i) the owner receives a certificate of substantial completion from the architect, engineer, or designer in charge of the project; or (ii) the owner receives beneficial occupancy or use of the project.",
        "interestOrPenalty": "Final payment delayed more than 45 days after acceptance, certification of completion, or occupancy and use bears interest from the 46th day at 1% per month or fraction thereof (a lower agreed rate may apply). Retainage a prime contractor holds from a subcontractor above the owner's percentage also bears 1% per month.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "N.C. Gen. Stat. § 143-134.1(b1).",
        "statuteUrl": "https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_143/GS_143-134.1.html",
        "statuteQuote": "The owner shall not retain more than five percent (5%) of any periodic payment due a prime contractor. When the project is fifty percent (50%) complete, the owner, with written consent of the surety, shall not retain any further retainage from periodic payments due the contractor if the contractor continues to perform satisfactorily ...",
        "relatedSections": [
          "G.S. 143-134.1(b2) (early finishing trades: retainage reduced to 0.5% at 100% trade completion; payment within 60 days)",
          "G.S. 143-134.1(b3) (after 50% completion the owner may withhold additional retainage to hold 2.5% total through completion)",
          "G.S. 143-134.1(b5) (bids with and without retainage allowed on bonded projects)",
          "G.S. 136-28.1 (NCDOT contracts, excluded)"
        ],
        "effectiveOrAmended": "1959, c. 1328; 1967, c. 860; 1979, c. 778; 1983, c. 804, ss. 1, 2; 2007-365, s. 1."
      },
      "summary": "Private: North Carolina sets no retainage cap on private work (the contract governs), but a contractor may not hold more retainage from a subcontractor than the owner holds from it, and money owed a subcontractor must move within seven days of the contractor being paid or it carries 1% per month. Public: no retainage is allowed on public projects under $100,000; above that the owner may hold 5% of each periodic payment, must stop withholding once the job is 50% complete (though it may re-withhold to keep 2.5% through completion), and must release all retainage within 60 days of a pay request plus substantial completion or beneficial occupancy, keeping back at most 2.5 times the value of remaining work.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "nc-0",
        "nc-1"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "ND",
      "name": "North Dakota",
      "private": {
        "regulated": true,
        "capPct": 10,
        "capNote": "Applies to contracts between persons for work to be done by a contractor, except contracts subject to N.D.C.C. § 40-22-37 or § 48-01.2-13 (public improvements) or governed by federal retention rules.",
        "stepDown": "true.",
        "releaseTrigger": "The 10% retention is allowable only until the project is 50% complete; after that no further retainage may be taken on estimates during the contract. The statute sets no release deadline for the amount already retained.",
        "releaseDeadlineDays": null,
        "releaseQuote": "retention of ten percent of each estimate presented is allowable until such time as the project is fifty percent complete, with no further retainage on estimates during the continuance of the contract.",
        "interestOrPenalty": "If the owner, governing board or authorized committee invests the retained estimate funds, the interest earned on those funds is payable to the contractor at the time of final payment.",
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": "N.D.C.C. § 43-07-23.",
        "statuteUrl": "https://ndlegis.gov/cencode/t43c07.pdf",
        "statuteQuote": "Contracts entered between persons for the performance of work to be done by a contractor, except those contracts subject to section 40-22-37 or 48-01.2-13, or contracts governed by federal statutes or regulations which require other provisions with respect to retention, are subject to a maximum retention on amounts due under the contract as follows: retention of ten percent of each estimate presented is allowable until such time as the project is fifty percent complete ...",
        "relatedSections": [
          "N.D.C.C. § 40-22-37 (municipal improvement contracts)",
          "N.D.C.C. § 48-01.2-13 (public improvements)"
        ],
        "effectiveOrAmended": null
      },
      "public": {
        "regulated": true,
        "capPct": 10,
        "capNote": "Ten percent of each partial payment estimate until the project is 50% complete, then no further retainage unless unsatisfactory progress or performance is documented. At 95% completion the governing body may pay up to 95% of the amount retained from previous estimates.",
        "stepDown": "true.",
        "releaseTrigger": "No fixed release deadline for retainage. Final payment of all moneys due follows completion of all work, acceptance of the project by the governing body, and provision of necessary releases; the remaining retained amount is paid in the amounts and at the times approved by the architect or engineer.",
        "releaseDeadlineDays": null,
        "releaseQuote": "The governing body may, upon completion of ninety-five percent of the contract, pay to the contractor up to ninety-five percent of the amount retained from previous estimates. The remaining amount retained must be paid to the contractor in the amounts and at the times approved by the architect or engineer.",
        "interestOrPenalty": "N.D.C.C. § 48-01.2-14: if the governing body fails to consider a properly submitted estimate, pay an approved estimate, or make final payment for more than 30 days from approval or from the completion and acceptance date, it must pay interest from the date of approval at two percentage points below the Bank of North Dakota prime rate.",
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": "N.D.C.C. § 48-01.2-13.",
        "statuteUrl": "https://ndlegis.gov/cencode/t48c01-2.pdf",
        "statuteQuote": "A partial payment estimate must include retentions or retainage as follows: ten percent of each estimate until the project is fifty percent completed with no further retainage on estimates during the continuance of the contract unless unsatisfactory progress or performance is documented.",
        "relatedSections": [
          "N.D.C.C. § 48-01.2-14 (late payment: rate of interest)",
          "N.D.C.C. ch. 48-01.2 (public improvement bids and contracts)"
        ],
        "effectiveOrAmended": null
      },
      "summary": "Private: on a North Dakota private construction contract retention is capped at 10% of each estimate until the job is 50% complete, after which no further retainage may be taken, and any interest the owner earns on invested retainage belongs to the contractor at final payment. Public: public improvement contracts follow the same 10%-to-50% rule (retainage may continue only if unsatisfactory progress is documented), the governing body may release up to 95% of the retained amount once the contract is 95% complete, and late estimates or final payments carry interest at the Bank of North Dakota prime rate minus two points after 30 days.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "nd-0",
        "nd-1"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "NE",
      "name": "Nebraska",
      "private": {
        "regulated": true,
        "capPct": 10,
        "capNote": "Retainage may not exceed the amount stated in the contract and in no case a rate of 10%. The cap and the step-down at 50% completion are in Neb. Rev. Stat. § 45-1204; the 45-day release and the 10-day pass-down to subcontractors are in the companion § 45-1203.",
        "stepDown": "true.",
        "releaseTrigger": "Substantial completion of the project or a designated portion of it. Separately, once the withheld party's scope of work is 50% complete and it has performed in accordance with the contract, no more than 5% of any additional progress payment may be withheld if it gives satisfactory and reasonable assurances of continued performance and financial responsibility.",
        "releaseDeadlineDays": 45,
        "releaseQuote": "The owner or the owner's representative shall release and pay all retainage for work completed in accordance with the provisions of the contract within forty-five days after the project, or a designated portion thereof, is substantially complete.",
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Neb. Rev. Stat. § 45-1204 (cap) and § 45-1203 (release), Nebraska Construction Prompt Pay Act.",
        "statuteUrl": "https://web.archive.org/web/20251115005337id_/https://nebraskalegislature.gov/laws/statutes.php?statute=45-1204",
        "statuteQuote": "For retainage, in an amount not to exceed the amount specified in the applicable contract, which shall not exceed a rate of ten percent. If the scope of work for the contractor or subcontractor from which retainage is withheld is fifty percent complete ... no more than five percent of any additional progress payment may be withheld as retainage ...",
        "relatedSections": [
          "Neb. Rev. Stat. § 45-1202 (definitions; excludes State of Nebraska contracts and state-aid/federal-aid projects)",
          "Neb. Rev. Stat. § 45-1203 (payment and retainage release deadlines)",
          "Neb. Rev. Stat. §§ 45-1201 to 45-1211 (Act)"
        ],
        "effectiveOrAmended": "Laws 2010, LB552, § 4; Laws 2014, LB961, § 7."
      },
      "public": {
        "regulated": true,
        "capPct": 10,
        "capNote": "Retainage may not exceed the amount stated in the contract and in no case a rate of 10%. The Act reaches political subdivisions but expressly excludes contracts for the State of Nebraska and federal-aid or state-aid projects of a political subdivision on which the state pays the contractor, so State of Nebraska contracts are outside it. The cap and the step-down at 50% completion are in Neb. Rev. Stat. § 45-1204; the 45-day release and the 10-day pass-down to subcontractors are in the companion § 45-1203.",
        "stepDown": "true.",
        "releaseTrigger": "Substantial completion of the project or a designated portion of it. Separately, once the withheld party's scope of work is 50% complete and it has performed in accordance with the contract, no more than 5% of any additional progress payment may be withheld if it gives satisfactory and reasonable assurances of continued performance and financial responsibility.",
        "releaseDeadlineDays": 45,
        "releaseQuote": "The owner or the owner's representative shall release and pay all retainage for work completed in accordance with the provisions of the contract within forty-five days after the project, or a designated portion thereof, is substantially complete.",
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Neb. Rev. Stat. § 45-1204 (cap) and § 45-1203 (release), Nebraska Construction Prompt Pay Act.",
        "statuteUrl": "https://web.archive.org/web/20251115005337id_/https://nebraskalegislature.gov/laws/statutes.php?statute=45-1204",
        "statuteQuote": "For retainage, in an amount not to exceed the amount specified in the applicable contract, which shall not exceed a rate of ten percent. If the scope of work for the contractor or subcontractor from which retainage is withheld is fifty percent complete ... no more than five percent of any additional progress payment may be withheld as retainage ...",
        "relatedSections": [
          "Neb. Rev. Stat. § 45-1202 (definitions; excludes State of Nebraska contracts and state-aid/federal-aid projects)",
          "Neb. Rev. Stat. § 45-1203 (payment and retainage release deadlines)",
          "Neb. Rev. Stat. §§ 45-1201 to 45-1211 (Act)"
        ],
        "effectiveOrAmended": "Laws 2010, LB552, § 4; Laws 2014, LB961, § 7."
      },
      "summary": "Private: retainage is capped at 10%, drops to no more than 5% of each further progress payment once the contractor's or subcontractor's scope is 50% complete and assurances are given, and all retainage must be released within 45 days after substantial completion (subcontractors within 10 days of the contractor's receipt). Public: the same rules apply to counties, cities and other political subdivisions, but contracts of the State of Nebraska itself and state-aid/federal-aid projects are carved out of the Act.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "ne-0",
        "ne-1",
        "ne-2",
        "ne-3",
        "ne-4"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "NJ",
      "name": "New Jersey",
      "private": {
        "regulated": true,
        "capPct": null,
        "capNote": "New Jersey's Prompt Payment Act regulates when retainage must be paid but sets no cap on the percentage that may be retained on a private project. 'Billing' is defined to include a 'request for release of retainage'.",
        "stepDown": null,
        "releaseTrigger": "Approval and certification of the billing (which includes a request for release of retainage) by the owner or the owner's authorized approving agent; a billing is deemed approved and certified 20 days after the owner receives it unless the owner gives a written statement of the amount withheld and the reason.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "the owner shall pay the amount due to the prime contractor for each periodic payment, final payment or retainage monies not more than 30 calendar days after the billing date, which for a periodic billing, shall be the periodic billing date specified in the contract.",
        "interestOrPenalty": "Late payment makes the delinquent party liable for the amount owed plus interest at the prime rate plus 1%, running from the day after the required payment date to the day the payment check is drawn; the prevailing party in a collection action gets reasonable costs and attorney fees.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "N.J.S.A. 2A:30A-2 (Prompt Payment Act), as amended by P.L.2006, c.96.",
        "statuteUrl": "https://pub.njleg.gov/bills/2006/PL06/96_.HTM",
        "statuteQuote": "If a prime contractor has performed in accordance with the provisions of a contract with the owner and the billing for the work has been approved and certified by the owner or the owner's authorized approving agent, the owner shall pay the amount due ... for each periodic payment, final payment or retainage monies not more than 30 calendar days after the billing date.",
        "relatedSections": [
          "N.J.S.A. 2A:30A-1 (definitions; 'owner' includes any public or governmental entity)",
          "P.L.1991, c.133 (original Act)"
        ],
        "effectiveOrAmended": "P.L.2006, c.96, approved September 1, 2006 (amending P.L.1991, c.133)."
      },
      "public": {
        "regulated": true,
        "capPct": 2,
        "capNote": "For local contracting units, where the contractor has agreed to the withholding of payments under N.J.S.A. 40A:11-16.1, 2% of the amount due on each partial payment is withheld pending completion. Applies to contracts over $100,000 for construction, reconstruction, alteration, repair or maintenance of a building, structure, facility or other improvement (N.J.S.A. 40A:11-16.2).",
        "stepDown": "false.",
        "releaseTrigger": "Acceptance of the work: the final acceptance date agreed upon by the contractor and the contracting unit.",
        "releaseDeadlineDays": 45,
        "releaseQuote": "all amounts being withheld by the contracting unit shall be released and paid in full to the contractor within 45 days of the final acceptance date agreed upon by the contractor and the contracting unit, without further withholding of any amounts for any purpose whatsoever, provided that the contract has been completed as indicated.",
        "interestOrPenalty": "N.J.S.A. 40A:11-16.3 itself sets no penalty; the Prompt Payment Act (N.J.S.A. 2A:30A-2), whose 'owner' includes public and governmental entities, imposes interest at prime plus 1% on late payment of retainage monies.",
        "securitiesSubstitution": true,
        "appliesToSubs": true,
        "statute": "N.J.S.A. 40A:11-16.3 (Local Public Contracts Law).",
        "statuteUrl": "https://www.nj.gov/labor/wageandhour/assets/PDFs/LPCL-NJAC%20Reference%20Guide%20V2.1.pdf",
        "statuteQuote": "2% of the amount due on each partial payment shall be withheld by the contracting unit pending completion of the contract.",
        "relatedSections": [
          "N.J.S.A. 40A:11-16.1 (contractor may deposit state/municipal bonds or notes in lieu of withheld payments; withheld cash held in an interest-bearing account)",
          "N.J.S.A. 40A:11-16.2 (contracts over $100,000: monthly partial payments)",
          "N.J.S.A. 2A:30A-2 (Prompt Payment Act, applies to public owners)"
        ],
        "effectiveOrAmended": "L.1979, c. 464, s. 2; amended 1991, c. 434, s. 2; 1999, c. 440, s. 26."
      },
      "summary": "Private: New Jersey puts no ceiling on the retainage percentage, but the Prompt Payment Act makes retainage monies due within 30 calendar days of the billing date (a billing is deemed approved 20 days after the owner gets it), with interest at prime plus 1% and fee-shifting if the owner is late; subcontractors must be paid their share within 10 days. Public: on local contracting-unit jobs over $100,000 the withholding is 2% of each partial payment, all of it must be released within 45 days of the agreed final acceptance date, and the contractor may substitute state or municipal bonds or notes for the money withheld.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "nj-0",
        "nj-1",
        "nj-2"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "NV",
      "name": "Nevada",
      "private": {
        "regulated": true,
        "capPct": 5,
        "capNote": "Where the agreement authorizes retention, the owner may withhold a retention amount not exceeding 5 percent of the amount of the payment to be made. Applies to agreements between an owner (owner or lessee of real property) and a prime contractor for a work of improvement.",
        "stepDown": "false.",
        "releaseTrigger": "Occupancy or use of the work of improvement by the owner (or someone acting with the owner's authority), or the availability of the work of improvement for its intended use (with written notice of availability or a certificate of occupancy).",
        "releaseDeadlineDays": 30,
        "releaseQuote": "Except as otherwise provided in this section, any money remaining unpaid for the construction of a work of improvement is payable to the prime contractor within 30 days after: (a) Occupancy or use of the work of improvement by the owner or by a person acting with the authority of the owner; or (b) The availability of a work of improvement for its intended use.",
        "interestOrPenalty": "NRS 624.630: money payable under NRS 624.609, 624.610, 624.620, 624.624, 624.626 or 624.628 accrues interest from the time it becomes due at the higher of the contract rate or the prime rate at the largest bank in the state plus 4 percent.",
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": "Nev. Rev. Stat. § 624.609(2)(a)(1); release under NRS 624.620(1).",
        "statuteUrl": "https://www.leg.state.nv.us/NRS/NRS-624.html",
        "statuteQuote": "A retention amount that, if the owner is authorized to withhold a retention amount pursuant to the agreement, must not exceed 5 percent of the amount of the payment to be made.",
        "relatedSections": [
          "NRS 624.606 to 624.630 (rights and duties under agreements for works of improvement)",
          "NRS 624.620 (payment after work available for use or occupancy)",
          "NRS 624.624 (payment of lower-tiered subcontractor)",
          "NRS 624.630 (interest)"
        ],
        "effectiveOrAmended": "NRS 624.609 added 2001, p. 1619; amended 2005, p. 1722; 2015, p. 2623. Chapter page revised 4/15/2026 (2025 statutes)."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "5% of each progress payment is withheld until 50% of the work is performed. After 50%, if the public body keeps withholding: not more than 2.5% of any progress payment (and it must first pay the contractor 50% of the retainage already withheld) unless it is also withholding under NRS 338.525, in which case not more than 5%.",
        "stepDown": "true.",
        "releaseTrigger": "Occupancy or beginning of use of the public work or a portion of it by the public body, recording of a notice of completion under NRS 108.228, or partial occupancy of one or more buildings.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "the public body shall pay or cause to be paid to the contractor any outstanding payment due, including, without limitation, retainage, and any interest accrued thereon within 30 days after whichever event described in subsection 1, 2 or 3 occurs first.",
        "interestOrPenalty": "NRS 338.515(6): the public body must pay the contractor, at the end of each quarter, interest on any amount withheld at a rate equal to the highest 90-day certificate-of-deposit rate quoted by at least three insured Nevada institutions on the first day of the quarter. NRS 338.530 adds interest for amounts improperly withheld.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Nev. Rev. Stat. § 338.515; release under NRS 338.520.",
        "statuteUrl": "https://www.leg.state.nv.us/NRS/NRS-338.html",
        "statuteQuote": "Ninety-five percent of the amount of any progress payment must be paid and 5 percent withheld as retainage until 50 percent of the work required by the contract has been performed.",
        "relatedSections": [
          "NRS 338.520 (payment of outstanding balance upon occupancy, use or notice of completion)",
          "NRS 338.525 (withholding for noncompliance)",
          "NRS 338.530 (interest on amounts withheld improperly)",
          "NRS 338.555 (payments to subcontractors)"
        ],
        "effectiveOrAmended": "NRS 338.520 added to NRS by 1999, p. 1984. Chapter page revised 4/15/2026 (2025 statutes)."
      },
      "summary": "Private: a Nevada owner may hold back at most 5% of each payment to the prime contractor, and everything still unpaid (retention included) is due within 30 days after the owner occupies or uses the project or it becomes available for its intended use, with interest at prime plus 4% on late money. Public: the public body withholds 5% until the job is 50% done, then may stop or drop to 2.5% (5% if it is also withholding for noncompliance), and must pay all retainage plus accrued interest within 30 days of occupancy, use, or a recorded notice of completion.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "nv-0",
        "nv-1"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "NY",
      "name": "New York",
      "private": {
        "regulated": true,
        "capPct": 5,
        "capNote": "By mutual agreement an owner may retain no more than 5% of the contract sum; a contractor or subcontractor may also retain no more than 5%, and in no case more than the percentage the owner actually retains.",
        "stepDown": "false.",
        "releaseTrigger": "Final approval of the work under the construction contract.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "Retainage shall be released by the owner to the contractor no later than thirty days after the final approval of the work under a construction contract.",
        "interestOrPenalty": "An owner, contractor or subcontractor that fails to release retainage as required is subject to interest at the rate of one percent per month from the date retention was due and owing.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "N.Y. Gen. Bus. Law § 756-c (Prompt Payment Act, art. 35-E).",
        "statuteUrl": "https://www.nysenate.gov/legislation/laws/GBS/756-C",
        "statuteQuote": "By mutual agreement of the relevant parties an owner may retain no more than five per centum of the contract sum as retainage. A contractor or subcontractor may also retain no more than five per centum for retainage and in no case shall retainage exceed the actual percentage retained by the owner.",
        "relatedSections": [
          "N.Y. Gen. Bus. Law art. 35-E, §§ 756 to 758 (Prompt Payment Act)"
        ],
        "effectiveOrAmended": "Last amended 2023-11-26 (per nysenate.gov)."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "A public owner retains not more than 5% of each progress payment, but may retain more than 5% and up to 10% if it does not require the contractor to furnish both a performance bond and a labor and material bond in the full amount of the contract. A contractor may retain the same percentages from subcontractors.",
        "stepDown": "false.",
        "releaseTrigger": "Substantial completion: within 45 business days of substantial completion the public owner submits a written punch list, then approves and pays the remaining contract balance less two times the value of any remaining items to be completed; as those items are completed the owner promptly pays for them on requisition.",
        "releaseDeadlineDays": null,
        "releaseQuote": "As the remaining items of work are satisfactorily completed or corrected, the public owner shall promptly pay, upon receipt of a requisition, for these items less an amount necessary to satisfy any claims, liens or judgments against the contractor which have not been suitably discharged.",
        "interestOrPenalty": "A public owner (other than New York City) that fails to pay within 30 days of receiving a proper requisition (45 days where an elected official must approve) owes interest at the overpayment rate set by the commissioner of taxation and finance. A contractor that does not pay a subcontractor within 7 calendar days of receiving payment owes interest on that obligation.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "N.Y. Gen. Mun. Law § 106-b.",
        "statuteUrl": "https://www.nysenate.gov/legislation/laws/GMU/106-B",
        "statuteQuote": "The public owner shall retain not more than five per centum of each progress payment to the contractor except that the public owner may retain in excess of five per centum but not more than ten per centum of each progress payment to the contractor provided that there are no requirements by the public owner for the contractor to provide a performance bond and a labor and material bond both in the full amount of the contract.",
        "relatedSections": [
          "N.Y. State Fin. Law § 139-f (state agency construction contracts)",
          "N.Y. Gen. Mun. Law § 106-b (political subdivisions)"
        ],
        "effectiveOrAmended": "Last amended 2021-06-18 (per nysenate.gov)."
      },
      "summary": "Private: on a New York private construction contract the owner may retain no more than 5% of the contract sum, a contractor may not hold more from a subcontractor than the owner holds from it, and retainage must be released within 30 days after final approval of the work, with 1% per month interest if it is not. Public: a public owner retains up to 5% of each progress payment (up to 10% if it does not require both a full performance bond and a labor and material bond), issues a punch list within 45 business days of substantial completion, and then pays the balance less twice the value of the remaining items, releasing the rest as they are finished.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "ny-0",
        "ny-1"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "OH",
      "name": "Ohio",
      "private": {
        "regulated": true,
        "capPct": null,
        "capNote": "No Ohio statute caps retainage on private construction; ORC 4113.61 expressly leaves the retainage percentage to 'any retainage provision contained in the contract, invoice, or purchase order'. It governs only the speed with which payments and retainage move down the chain, and does not apply to construction or improvement of single-, two-, or three-family detached dwelling houses.",
        "stepDown": null,
        "releaseTrigger": "The contractor's receipt of final retainage from the owner. The ten-day deadline is for passing retainage down to subcontractors and material suppliers; it does not set when the owner releases retainage.",
        "releaseDeadlineDays": 10,
        "releaseQuote": "If a contractor receives any final retainage from the owner for improvements to property, the contractor shall pay from that retainage each subcontractor and material supplier the subcontractor's or material supplier's proportion of the retainage, within ten calendar days after receipt of the retainage from the owner, or within the time period provided in a contract, invoice, or purchase order ..., whichever time period is shorter ...",
        "interestOrPenalty": "Failure to pass retainage down within the time allowed obliges the payer to pay, in addition to the retainage due, interest of eighteen per cent per annum from the eleventh day following receipt until full payment.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Ohio Rev. Code § 4113.61.",
        "statuteUrl": "https://codes.ohio.gov/ohio-revised-code/section-4113.61",
        "statuteQuote": "The contractor may reduce the amount paid by any retainage provision contained in the contract, invoice, or purchase order between the contractor and the subcontractor or material supplier, and may withhold amounts that may be necessary to resolve disputed liens or claims ...",
        "relatedSections": [
          "Ohio Rev. Code § 4113.61(C) (does not apply to single-, two-, or three-family detached dwellings)"
        ],
        "effectiveOrAmended": "Effective September 29, 2011 (House Bill 153, 129th General Assembly)."
      },
      "public": {
        "regulated": true,
        "capPct": 4,
        "capNote": "Since House Bill 96 took effect on September 30, 2025, partial payments for labor under a unit or lump sum price public improvement contract must be made 'at a rate of not less than ninety-six per cent' of the approved estimates: a maximum 4% retainage on labor, with no 50%-completion step. Stored materials are paid at 92% of invoice cost under ORC 153.14, with the balance paid when the material is incorporated into the work. No subcontract may be paid at a rate lower than the rate the public authority pays the contractor. The 96% floor is in ORC § 153.12; the 30-day release is in § 153.13 as in effect from September 30, 2025.",
        "stepDown": "false.",
        "releaseTrigger": "Substantial completion, occupation, use, or acceptance of the major portion of the project (with no other reason to withhold retainage); the balance follows final completion.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "When the major portion of the project is substantially completed and occupied, or in use, or otherwise accepted, and there exists no other reason to withhold retainage, the retained percentages held in connection with such portion and interest thereon accrued shall, within thirty days of substantial completion of, occupation of, use of, or acceptance of the project, be paid to the primary contractor, withholding only that amount reasonably necessary to assure final completion of the project.",
        "interestOrPenalty": "ORC 153.14: payment on approved estimates is due within thirty days; on failure to pay within thirty days, or on an unauthorized withholding of retainage, the contractor is allowed interest at the average prime rate established at commercial banks in the nearest city of over 100,000 population. ORC 153.63(D): if money due is neither paid nor deposited in escrow, the governmental entity owes eight per cent annual interest compounded daily.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Ohio Rev. Code § 153.12 (partial payments at not less than 96%, the source of the 4% cap) and § 153.13 (retained percentages released within 30 days of substantial completion); see also §§ 153.14, 153.63.",
        "statuteUrl": "https://web.archive.org/web/20260316182614id_/https://codes.ohio.gov/ohio-revised-code/section-153.12",
        "statuteQuote": "Partial payments to the contractor for labor performed under either a unit or lump sum price contract shall be made at a rate of not less than ninety-six per cent of the estimates prepared by the contractor and approved by the architect or engineer. No subcontract shall be paid at a rate lower than the rate being paid to the contractor by the public authority.",
        "relatedSections": [
          "Ohio Rev. Code § 153.13 (release of retained percentages within 30 days of substantial completion; balance within 30 days after final completion)",
          "Ohio Rev. Code § 153.14 (92% of invoice cost of stored materials; 30-day payment; interest at average prime rate)",
          "Ohio Rev. Code § 153.63 (escrow account for money due; 8% annual interest compounded daily if not paid or deposited)"
        ],
        "effectiveOrAmended": "Effective September 30, 2025 (House Bill 96, 136th General Assembly) for §§ 153.12, 153.13, 153.14 and 153.63."
      },
      "summary": "Private: Ohio puts no ceiling on private retainage (the contract sets the percentage), but once a contractor receives final retainage from the owner it must pass each subcontractor's and supplier's share on within ten calendar days or owe 18% a year, and the rule does not reach one-, two- or three-family detached houses. Public: House Bill 96 cut public-improvement retainage on labor to a flat 4% from September 30, 2025 (payments at not less than 96% of approved estimates, with no 50%-completion step), and retained percentages plus accrued interest must be paid within thirty days of substantial completion, occupancy, use or acceptance, holding back only what is reasonably necessary to assure final completion.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "oh-0",
        "oh-1",
        "oh-2",
        "oh-3",
        "oh-4",
        "oh-5",
        "oh-6"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "OK",
      "name": "Oklahoma",
      "private": {
        "regulated": false,
        "capPct": null,
        "capNote": "No Oklahoma retainage statute reaching private owners was located. Both retainage regimes found in Title 61 are public: 61 O.S. § 113.1 governs 'a public construction contract', and the Fair Pay for Construction Act (61 O.S. §§ 221-227) defines 'Owner' as 'any state government entity, municipality, township, public trust or an instrumentality of a state government entity, municipality, township or public trust in this state'.",
        "stepDown": null,
        "releaseTrigger": null,
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": null,
        "statuteUrl": "https://oksenate.gov/sites/default/files/2019-12/os61.pdf",
        "statuteQuote": null,
        "relatedSections": [],
        "effectiveOrAmended": null
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "Two overlapping regimes. 61 O.S. § 113.1: a public construction contract shall provide that up to 5% of all partial payments is withheld as retainage; the Department of Transportation and the Oklahoma Turnpike Authority may not withhold retainage at all. Fair Pay for Construction Act, 61 O.S. § 226: retainage not to exceed 5% of the payment due, dropping to 2.5% on the balance of the work where the contract is bonded under Title 61 and the work is at least 50% complete; the same applies to subcontracts. The Act does not apply to highway, railroad or turnpike construction, to roads, bridges, utilities, traffic control, drainage, sanitary sewer or waterline construction except as part of a construction contract, or to one- to four-family dwellings.",
        "stepDown": "true.",
        "releaseTrigger": "Issuance of a certificate of substantial completion for the project or a separate usable phase, with adequate performance by the prime contractor and approval of any applicable surety.",
        "releaseDeadlineDays": 21,
        "releaseQuote": "No later than twenty-one (21) calendar days after a certificate of substantial completion is issued for the project or separate usable phase of the project and upon adequate performance of the prime contractor and with approval of any applicable surety, retainage shall be released by the owner to the prime contractor less an amount no greater than one hundred fifty percent (150%) of the estimated costs to correct any incomplete or defective work ...",
        "interestOrPenalty": "61 O.S. § 113.3: awarding public agencies other than school districts pay interest at 1 1/2% per month of the final payment due; school districts pay 3/4% per month. For lump sum contracts interest starts thirty days after the work is completed and accepted and required certifications are furnished, and runs until final payment is tendered.",
        "securitiesSubstitution": true,
        "appliesToSubs": true,
        "statute": "61 O.S. § 113.1 and 61 O.S. § 226 (Fair Pay for Construction Act).",
        "statuteUrl": "https://oksenate.gov/sites/default/files/2019-12/os61.pdf",
        "statuteQuote": "A public construction contract shall provide for partial payment based upon work completed. The contract shall provide that up to five percent (5%) of all partial payments made shall be withheld as retainage.",
        "relatedSections": [
          "61 O.S. § 113.2 (withdrawal of retainage on deposit of U.S. Treasury securities, Oklahoma general obligation bonds, or certificates of deposit from an Oklahoma bank)",
          "61 O.S. § 113.3 (interest: rate)",
          "61 O.S. § 222 ('Owner' defined as government entities)",
          "61 O.S. § 227 (application of act; exclusions)"
        ],
        "effectiveOrAmended": "61 O.S. § 113.1: added Laws 1977, c. 74, § 2; last amended Laws 2011, c. 99, § 1, eff. Nov. 1, 2011. 61 O.S. § 226: added Laws 2004, c. 256, § 6; last amended Laws 2019, c. 456, § 1, eff. Nov. 1, 2019."
      },
      "summary": "Private: no Oklahoma statute caps retainage on private construction; both retainage regimes in Title 61 apply only where the owner is a government entity, so private retainage is whatever the contract says. Public: up to 5% of partial payments may be withheld (none at all by the Department of Transportation or Turnpike Authority), the rate drops to 2.5% on the balance once bonded work is 50% complete, retainage must be released within 21 calendar days of a certificate of substantial completion less 150% of the cost to correct incomplete or defective work, and the contractor may withdraw retainage by depositing Treasury securities, Oklahoma general obligation bonds or an Oklahoma bank CD.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "ok-0"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "OR",
      "name": "Oregon",
      "private": {
        "regulated": true,
        "capPct": 5,
        "capNote": "An owner, contractor or subcontractor may withhold as retainage not more than five percent of the contract price of the work completed, on contracts for construction and home improvement.",
        "stepDown": "false.",
        "releaseTrigger": "Completion of the work by the contractor and acceptance by the owner. The contractor notifies the party it is responsible to when it considers the work complete; that party has 15 days to accept the work or identify work still to be performed.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "The owner, contractor or subcontractor shall pay interest at the rate of one percent per month on the final payment due the contractor or subcontractor. The interest shall commence 30 days after the contractor or subcontractor has completed and the owner has accepted the work under the contract for construction for which the final payment is due.",
        "interestOrPenalty": "One percent per month on the final payment, commencing 30 days after completion and acceptance (or 30 days after the end of the 15-day accept-or-notify period if the party does not respond), running until final payment is tendered.",
        "securitiesSubstitution": true,
        "appliesToSubs": true,
        "statute": "Or. Rev. Stat. § 701.420(1).",
        "statuteUrl": "https://www.oregonlegislature.gov/bills_laws/ors/ors701.html",
        "statuteQuote": "Partial payment is allowed and may be made on contracts for construction and home improvement. An owner, contractor or subcontractor may withhold as retainage an amount equal to not more than five percent of the contract price of the work completed.",
        "relatedSections": [
          "ORS 701.410 (definitions; 'retainage')",
          "ORS 701.420(3) (owner must release the matching retainage to the contractor within 15 days after notice that a subcontractor was paid in full)",
          "ORS 701.430 (faithful performance bond)",
          "ORS 701.435 (surety bond in lieu of retainage on large commercial structures and public improvement contracts)"
        ],
        "effectiveOrAmended": "ORS 701.420: 1975 c.772 §2; 2010 c.77 §8; 2013 c.410 §2; 2019 c.486 §2; 2024 c.2 §3 (2025 Edition)."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "A contracting agency may reserve as retainage from any progress payment on a public improvement contract an amount not to exceed five percent of the payment. Retainage a contractor or subcontractor withholds on public improvement contracts is governed by ORS 701.420 (also 5%).",
        "stepDown": "true.",
        "releaseTrigger": "Final payment of the contract price. Retainage must be included in and paid as part of the final payment; interest runs from 30 days after the work is completed and accepted, with the same 15-day accept-or-notify mechanism.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "The retainage held by a contracting agency must be included in and paid to the contractor as part of the final payment of the contract price. The contracting agency shall pay to the contractor interest at the rate of 1.5 percent per month on the final payment due the contractor, interest to commence 30 days after the work under the contract has been completed and accepted ...",
        "interestOrPenalty": "1.5 percent per month on the final payment (including retainage) from 30 days after completion and acceptance. Progress payments other than retainage bear interest at three times the 90-day commercial paper discount rate, capped at 30 percent, commencing 30 days after invoice receipt or 15 days after approval, whichever is earlier; interest is paid automatically without the contractor having to ask.",
        "securitiesSubstitution": true,
        "appliesToSubs": true,
        "statute": "Or. Rev. Stat. § 279C.570(7)-(8).",
        "statuteUrl": "https://www.oregonlegislature.gov/bills_laws/ors/ors279C.html",
        "statuteQuote": "A contracting agency may reserve as retainage from any progress payment on a public improvement contract an amount not to exceed five percent of the payment. As work progresses, a contracting agency may reduce the amount of the retainage and the contracting agency may eliminate retainage on any remaining monthly contract payments after 50 percent of the work under the contract is completed if, in the contracting agency's opinion, such work is progressing satisfactorily.",
        "relatedSections": [
          "ORS 279C.550 ('retainage' defined)",
          "ORS 279C.555 (contractor/subcontractor withholding on public improvement contracts follows ORS 701.420)",
          "ORS 279C.570(7) (at 97.5 percent completion the agency may reduce the retained amount to 100 percent of the value of remaining work)",
          "ORS 701.435 (surety bond in lieu of retainage)"
        ],
        "effectiveOrAmended": "ORS 279C.570: 2003 c.794 §150; 2005 c.103 §33; 2019 c.486 §1; 2024 c.2 §2 (2025 Edition)."
      },
      "summary": "Private: an Oregon owner, contractor or subcontractor may hold back no more than 5% of the contract price of completed work, final payment carries 1% per month interest starting 30 days after the contractor completes and the owner accepts the work (with a 15-day accept-or-notify step), and on large commercial projects a contractor may hand over a surety bond instead of leaving the retainage in the owner's hands. Public: a contracting agency may reserve up to 5% of each progress payment, may eliminate retainage on remaining payments once the job is 50% complete on written application with the surety's approval (and at 97.5% complete may cut the retained amount to the value of the work left), and must include retainage in the final payment, with 1.5% per month interest running from 30 days after completion and acceptance.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "or-0",
        "or-1"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "RI",
      "name": "Rhode Island",
      "private": {
        "regulated": null,
        "capPct": null,
        "capNote": null,
        "stepDown": null,
        "releaseTrigger": null,
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": null,
        "statuteUrl": null,
        "statuteQuote": null,
        "relatedSections": [],
        "effectiveOrAmended": null
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "R.I. Gen. Laws § 37-12-10.1(a) bars any contract for construction, or for state or municipal public works projects, from including retainage that exceeds five percent (5%) of any progress payment; contracts under § 37-12-10 are excluded. The owner has 14 days to give notice of substantial completion and 14 days to accept or reject, and withholding on release is limited to 150% of the cost to complete plus 2.5% of the adjusted contract price, with 0.5% holdable for up to one year. The companion § 37-12-10 lets an awarding authority retain not exceeding five percent (5%) of the contract price on public works, sewer and water-main contracts under $500,000.",
        "stepDown": null,
        "releaseTrigger": "Submission of an application for payment of retainage, after the 14-day notice of substantial completion and the owner's 14 days to accept or reject.",
        "releaseDeadlineDays": 30,
        "releaseQuote": "an application for payment of retainage shall be paid not later than thirty (30) days following submission of the application",
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": "R.I. Gen. Laws § 37-12-10.1.",
        "statuteUrl": "https://web.archive.org/web/20260724154250id_/https://webserver.rilegislature.gov/Statutes/TITLE37/37-12/37-12-10.1.htm",
        "statuteQuote": "(a) No contract for construction, as defined in Sec. 5-65-1, or for state or municipal public works projects, as defined in this title, excluding contracts under Sec. 37-12-10, shall include retainage that exceeds five percent (5%) of any progress payment.",
        "relatedSections": [
          "R.I. Gen. Laws § 37-12-10 (public works, sewer and water-main contracts under $500,000; not exceeding 5%)"
        ],
        "effectiveOrAmended": null
      },
      "summary": "Public work: no contract for construction or for state or municipal public works may include retainage above 5% of a progress payment, and an application for payment of retainage must be paid within 30 days of submission. This record covers public work only.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "ri-0"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "SC",
      "name": "South Carolina",
      "private": {
        "regulated": true,
        "capPct": null,
        "capNote": "No statutory percentage cap on private work. The prompt-payment chapter (Title 29, ch. 6, art. 1) applies to commercial private projects and expressly permits withholding 'a reasonable amount for retainage,' but sets no number and no release deadline. Sec. 29-6-60 excludes residential homebuilders, residential improvements of 16 or fewer units, and owner-financed private improvements.",
        "stepDown": null,
        "releaseTrigger": null,
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": "Late payment (not retainage-specific): 1% per month from the due date, if the payer was notified of the section when payment was requested. On private projects the parties may contract out of Sec. 29-6-30 and Sec. 29-6-50 rates/periods only by waiving them by section number in conspicuous bold or underlined type.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "S.C. Code Ann. Sec. 29-6-40 (with Sec. 29-6-30, Sec. 29-6-50, Sec. 29-6-60).",
        "statuteUrl": "https://www.scstatehouse.gov/code/t29c006.php",
        "statuteQuote": "Nothing in this chapter prevents the owner, the contractor, or a subcontractor from withholding application and certification for payment because of the following: unsatisfactory job progress, defective construction not remedied, disputed work, ... or a reasonable amount for retainage.",
        "relatedSections": [
          "S.C. Code Ann. Sec. 29-6-30 (21-day owner / 7-day subcontractor payment)",
          "S.C. Code Ann. Sec. 29-6-50 (1% per month interest; private-project waiver)",
          "S.C. Code Ann. Sec. 29-6-60 (exclusions)",
          "S.C. Code Ann. Sec. 29-6-230 (pay-if-paid not a condition precedent)"
        ],
        "effectiveOrAmended": "1990 Act No. 426, Section 1 (chapter enacted); Article 3 added 2000 Act No. 295."
      },
      "public": {
        "regulated": true,
        "capPct": 3.5,
        "capNote": "Maximum 3.5% of each progress payment, and the same cap applies down the chain to subcontracts. This is the Consolidated Procurement Code, which governs state governmental bodies; local political subdivisions are generally outside Title 11 ch. 35.",
        "stepDown": null,
        "releaseTrigger": "Certification that a division of the contract (each separate contractor's or subcontractor's scope on a multi-prime / multi-sub project) is complete; the allocable retainage must then be released 'forthwith' to the prime, who has 10 days to pass it to the subcontractor.",
        "releaseDeadlineDays": 10,
        "releaseQuote": "As each division of the contract is certified as having been completed, that portion of the retained funds which is allocable to the completed division of the contract must be released forthwith to the prime contractor, who, within ten days of its receipt, shall release to the subcontractor responsible for the completed work the full amount of retention previously withheld from him by the prime contractor.",
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "S.C. Code Ann. Sec. 11-35-3030(4).",
        "statuteUrl": "https://www.scstatehouse.gov/code/t11c035.php",
        "statuteQuote": "In a contract or subcontract for construction which provides for progress payments in installments based upon an estimated percentage of completion, with a percentage of the contract's proceeds to be retained by the State or general contractor pending completion of the contract or subcontract, the retained amount of each progress payment or installment must be no more than three and one-half percent.",
        "relatedSections": [
          "S.C. Code Ann. Sec. 11-35-3030(1)-(3) (bid, performance and payment bonds)",
          "S.C. Code Ann. Sec. 29-6-250 (payment bond for governmental bodies over $50,000)"
        ],
        "effectiveOrAmended": "HISTORY: 1981 Act No. 148 ... 2014 Act No. 264, eff June 6, 2014; 2019 Act No. 41 (S.530), Sec. 43, eff May 13, 2019 (applies to solicitations issued after that date)."
      },
      "summary": "Private commercial jobs: South Carolina sets no retainage percentage and no release deadline; the prompt-pay chapter only allows withholding 'a reasonable amount for retainage,' and residential homebuilders, projects of 16 or fewer residential units, and owner-financed private work are outside the chapter entirely. State public jobs: retainage is capped at 3.5% of each progress payment, and as each division of work is certified complete the allocable retainage goes to the prime 'forthwith,' who must pay the responsible subcontractor within 10 days.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "sc-0",
        "sc-1"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "TN",
      "name": "Tennessee",
      "private": {
        "regulated": true,
        "capPct": null,
        "capNote": "Tenn. Code Ann. § 66-34-303, as amended by 2020 Public Chapter 749, caps retainage between a prime contractor and a remote contractor at five percent (5%) of the contract amount. The ninety-day release rule of § 66-34-103(b) binds the owner 'whether public or private'. Section 66-34-104 requires retained funds to be deposited in a separate interest-bearing third-party escrow account.",
        "stepDown": null,
        "releaseTrigger": "Completion of the work, or substantial completion of the project, whichever occurs first.",
        "releaseDeadlineDays": 90,
        "releaseQuote": "The owner, whether public or private, shall release and pay all retainages for work completed pursuant to the terms of any contract to the prime contractor within ninety (90) days after completion of the work or within ninety (90) days after substantial completion of the project for work completed, whichever occurs first. ... The prime contractor shall pay all retainages due any remote contractor within ten (10) days after receipt of the retainages from the owner.",
        "interestOrPenalty": "Failure to deposit retained funds in the required interest-bearing escrow account carries $300 per day in damages (§ 66-34-104).",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Tenn. Code Ann. §§ 66-34-103(b), 66-34-104 and 66-34-303, as amended by 2020 Tenn. Pub. Acts ch. 749.",
        "statuteUrl": "https://web.archive.org/web/20260513193031id_/https://publications.tnsosfiles.com/acts/111/pub/pc0749.pdf",
        "statuteQuote": "(b) The owner, whether public or private, shall release and pay all retainages for work completed pursuant to the terms of any contract to the prime contractor within ninety (90) days after completion of the work or within ninety (90) days after substantial completion of the project for work completed, whichever occurs first.",
        "relatedSections": [],
        "effectiveOrAmended": "As amended by 2020 Tenn. Pub. Acts ch. 749 (Public Chapter 749, 111th General Assembly)."
      },
      "public": {
        "regulated": true,
        "capPct": null,
        "capNote": "Tenn. Code Ann. § 66-34-303, as amended by 2020 Public Chapter 749, caps retainage between a prime contractor and a remote contractor at five percent (5%) of the contract amount. The ninety-day release rule of § 66-34-103(b) binds the owner 'whether public or private'. Section 66-34-104 requires retained funds to be deposited in a separate interest-bearing third-party escrow account.",
        "stepDown": null,
        "releaseTrigger": "Completion of the work, or substantial completion of the project, whichever occurs first.",
        "releaseDeadlineDays": 90,
        "releaseQuote": "The owner, whether public or private, shall release and pay all retainages for work completed pursuant to the terms of any contract to the prime contractor within ninety (90) days after completion of the work or within ninety (90) days after substantial completion of the project for work completed, whichever occurs first. ... The prime contractor shall pay all retainages due any remote contractor within ten (10) days after receipt of the retainages from the owner.",
        "interestOrPenalty": "Failure to deposit retained funds in the required interest-bearing escrow account carries $300 per day in damages (§ 66-34-104).",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Tenn. Code Ann. §§ 66-34-103(b), 66-34-104 and 66-34-303, as amended by 2020 Tenn. Pub. Acts ch. 749.",
        "statuteUrl": "https://web.archive.org/web/20260513193031id_/https://publications.tnsosfiles.com/acts/111/pub/pc0749.pdf",
        "statuteQuote": "(b) The owner, whether public or private, shall release and pay all retainages for work completed pursuant to the terms of any contract to the prime contractor within ninety (90) days after completion of the work or within ninety (90) days after substantial completion of the project for work completed, whichever occurs first.",
        "relatedSections": [],
        "effectiveOrAmended": "As amended by 2020 Tenn. Pub. Acts ch. 749 (Public Chapter 749, 111th General Assembly)."
      },
      "summary": "Private: a Tennessee owner must release and pay all retainage within 90 days after completion or substantial completion of the project, whichever comes first, and the prime contractor must pass it down to remote contractors within 10 days of receipt. Public: the same 90-day rule applies (the statute says 'whether public or private'), with prime-to-remote retainage capped at 5% and retained funds required to sit in a separate interest-bearing escrow account under penalty of $300 a day.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "tn-0"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "TX",
      "name": "Texas",
      "private": {
        "regulated": true,
        "capPct": null,
        "capNote": "Texas does not cap contractual retainage on private work. The statute instead requires the owner to reserve 10% of the contract price (or 10% of the value of work done) as a fund for lien claimants during the work and for 30 days after completion. Subchapter E was rewritten by H.B. 2237 (2021) and is now titled 'Funds Reserved for Benefit of Lien Claimants.'",
        "stepDown": null,
        "releaseTrigger": "The owner's duty to reserve runs during the progress of the work and for 30 days after the work under the original contract is completed; a claimant must file a lien affidavit on the reserved funds not later than the 30th day after completion, termination, or abandonment (Sec. 53.103).",
        "releaseDeadlineDays": null,
        "releaseQuote": "During the progress of work under an original contract for which a mechanic's lien may be claimed and for 30 days after the work under the contract is completed, the owner shall reserve: (1) 10 percent of the contract price of the work to the owner; or (2) 10 percent of the value of the work...",
        "interestOrPenalty": "None in Subchapter E. The sanction for failing to reserve is lien exposure: claimants who comply with Subchapter C or E get a lien against the improvement and land at least to the extent of the amount that should have been reserved (Sec. 53.105).",
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": "Tex. Prop. Code Sec. 53.101.",
        "statuteUrl": "https://statutes.capitol.texas.gov/Docs/PR/htm/PR.53.htm",
        "statuteQuote": "During the progress of work under an original contract for which a mechanic's lien may be claimed and for 30 days after the work under the contract is completed, the owner shall reserve: (1) 10 percent of the contract price of the work to the owner; or (2) 10 percent of the value of the work...",
        "relatedSections": [
          "Tex. Prop. Code Sec. 53.102 (payment secured by reserved funds)",
          "Tex. Prop. Code Sec. 53.103 (lien on reserved funds; 30-day affidavit)",
          "Tex. Prop. Code Sec. 53.105 (owner's liability for failure to reserve)",
          "Tex. Prop. Code Sec. 53.106 (affidavit of completion)"
        ],
        "effectiveOrAmended": "Acts 1983, 68th Leg., ch. 576; amended Acts 1989; amended by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 18, eff. January 1, 2022."
      },
      "public": {
        "regulated": true,
        "capPct": 10,
        "capNote": "Two-tier cap set by H.B. 692 (2021): 10% if the public works contract is worth less than $5 million; 5% if it is $5 million or more; 10% for dam construction or maintenance regardless of value. The cap also limits the rate for any single line item in the bid schedule or schedule of values, including materials and equipment delivered on site. Subchapter B does not apply to contracts under $400,000, contracts executed before Aug. 31, 1981, or TxDOT contracts under Transportation Code ch. 223.",
        "stepDown": "Not a completion-based step-down: the percentage depends on the contract's total value ($5 million threshold). The contract must state when the project is substantially complete and when the entity may release retainage for substantially completed or fully completed and accepted portions.",
        "releaseTrigger": "Completion of the work required under the contract: the entity may not hold retainage after completion, including during the warranty period, and must pay remaining retainage plus interest earned on completion. Retainage may still be withheld on final application only for a bona fide dispute over noncompliant labor, services or materials, or if the surety will not agree to release.",
        "releaseDeadlineDays": null,
        "releaseQuote": "A governmental entity may not withhold retainage: (1) after completion of the work required to be performed under the contract by the prime contractor, including during the warranty period",
        "interestOrPenalty": "For contracts described in subsection (c) the entity must pay the remaining retainage 'and the interest earned on the retainage' to the prime on completion. Competitively awarded contracts of $10 million or more (and non-competitively awarded contracts) may be agreed into an interest-bearing account; certain water-project entities must deposit retainage above 5% in an interest-bearing account.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Tex. Gov't Code Sec. 2252.032.",
        "statuteUrl": "https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2252.htm",
        "statuteQuote": "(1) if the total value of a public works contract is less than $5 million, a governmental entity may not withhold retainage in an amount that exceeds 10 percent of the contract price ... (2) if the total value of a public works contract is $5 million or more, a governmental entity may not withhold retainage in an amount that exceeds five percent of the contract price",
        "relatedSections": [
          "Tex. Gov't Code Sec. 2252.031 (definitions, incl. 'retainage' and 'warranty period')",
          "Tex. Gov't Code Sec. 2252.033 (exemptions: pre-1981 contracts, contracts under $400,000, TxDOT ch. 223 contracts)",
          "Tex. Gov't Code ch. 2251 (prompt payment for governmental entities)"
        ],
        "effectiveOrAmended": "Added by Acts 1993, 73rd Leg., ch. 268; amended by Acts 2021, 87th Leg., R.S., Ch. 635 (H.B. 692), Sec. 3, eff. June 15, 2021."
      },
      "summary": "Private jobs: the contract sets the retainage rate, but the owner must separately reserve 10% of the contract price (or of the value of work done) for lien claimants during the job and for 30 days after completion, and an owner who fails to reserve faces a lien for the amount that should have been held. Public jobs: since June 15, 2021 a governmental entity may hold no more than 10% under $5 million and no more than 5% at $5 million or more (10% for dams), may not withhold a higher percentage from subs than is withheld from the prime, and may not hold retainage at all after the work is complete, including during the warranty period.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "tx-r0",
        "tx-r1"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "VA",
      "name": "Virginia",
      "private": {
        "regulated": false,
        "capPct": null,
        "capNote": "Virginia's private construction payment statute (Sec. 11-4.6, the 2022 'SB 550' payment-terms law) expressly leaves retainage alone: its 60-day payment requirement neither applies to nor prohibits retainage provisions. No statewide cap or release deadline for retainage on private work was located.",
        "stepDown": null,
        "releaseTrigger": null,
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": "Not for retainage. Interest penalties under Sec. 2.2-4355 apply to late payment of invoiced amounts under Sec. 11-4.6, but that subsection is the one carved out from retainage.",
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": "Va. Code Sec. 11-4.6.",
        "statuteUrl": "https://law.lis.virginia.gov/vacode/title11/chapter3/section11-4.6/",
        "statuteQuote": "Nothing in this subdivision shall be construed to apply to or prohibit the inclusion of any retainage provisions in a construction contract.",
        "relatedSections": [
          "Va. Code Sec. 11-4.6(B)(1) (owner pays general contractor within 60 days; 45-day withholding notice)",
          "Va. Code Sec. 11-4.6(B)(2) (general contractor pays subcontractor within 60 days or 7 days after receipt)",
          "Va. Code Sec. 2.2-4355 (interest penalty rate referenced)"
        ],
        "effectiveOrAmended": "2020, c. 1038; 2021, Sp. Sess. I, c. 511; 2022, cc. 726, 727, 771; 2023, cc. 675, 676; 2026, c. 1040."
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "Public contracts for construction with progress payments based on estimated percentage of completion: the contractor must be paid at least 95% of the earned sum, so no more than 5% may be retained. The same rule flows down to subcontracts on public projects.",
        "stepDown": null,
        "releaseTrigger": "The statute sets no separate release date; it states that all amounts withheld may be included in the final payment. For local-government contracts of $200,000 or more for the listed infrastructure work, the bid proposal must offer an escrow-account procedure for the retainage, with the escrow agreement due within 15 calendar days after notification.",
        "releaseDeadlineDays": null,
        "releaseQuote": "In any public contract for construction that provides for progress payments in installments based upon an estimated percentage of completion, the contractor shall be paid at least ninety-five percent of the earned sum when payment is due, with no more than five percent being retained to ensure faithful performance of the contract. All amounts withheld may be included in the final payment.",
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "Va. Code Sec. 2.2-4333.",
        "statuteUrl": "https://law.lis.virginia.gov/vacode/title2.2/chapter43/section2.2-4333/",
        "statuteQuote": "In any public contract for construction that provides for progress payments in installments based upon an estimated percentage of completion, the contractor shall be paid at least ninety-five percent of the earned sum when payment is due, with no more than five percent being retained to ensure faithful performance of the contract.",
        "relatedSections": [
          "Va. Code Sec. 2.2-4334 (escrow option for retained funds on local-government contracts of $200,000 or more for highways, roads, streets, bridges, parking lots, demolition, clearing, grading, excavating, paving, pile driving, drainage structures, and water/gas/sewer lines and pumping stations)",
          "Va. Code Sec. 2.2-4354 (subcontractor payment on public contracts)"
        ],
        "effectiveOrAmended": "1982, c. 647, Sec. 11-56; 2001, c. 844 (recodified into the Virginia Public Procurement Act)."
      },
      "summary": "Private jobs: Virginia does not cap retainage or set a deadline to release it; the 2022 payment-terms law says in terms that it neither applies to nor prohibits retainage clauses, so the contract governs. Public jobs: a public body may retain no more than 5% (the contractor must be paid at least 95% of the earned sum), the same limit applies down to subcontracts, withheld amounts may be paid out in the final payment, and local-government contracts of $200,000 or more for road and utility-type work must offer an escrow procedure for the retainage.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "va-0",
        "va-1",
        "va-2"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "VT",
      "name": "Vermont",
      "private": {
        "regulated": true,
        "capPct": null,
        "capNote": "Vermont sets no percentage cap. It regulates timing instead: retainage must be paid within 30 days after final acceptance. A contractor or subcontractor may not hold retainage on delivered materials that are covered by a manufacturer's warranty or graded to industry standards (Sec. 4005(e)), except where the party is both materialman and installer.",
        "stepDown": null,
        "releaseTrigger": "Final acceptance of the work (and, where the owner holds no retainage but a contractor does hold it from its subcontractor, the same 30-day clock from final acceptance applies).",
        "releaseDeadlineDays": 30,
        "releaseQuote": "If payments under a construction contract are subject to retainage, any amounts that have been retained during the performance of the contract and that are due to be released to the contractor upon final completion shall be paid within 30 days after final acceptance of the work.",
        "interestOrPenalty": "Unreasonably withholding acceptance or failing to pay retainage triggers the interest, penalty and fee provisions of Sec. 4002, Sec. 4003 and Sec. 4007: a penalty of 1% per month of sums wrongfully withheld, plus reasonable attorney's fees and expenses to the substantially prevailing party.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "9 V.S.A. Sec. 4005.",
        "statuteUrl": "https://legislature.vermont.gov/statutes/section/09/102/04005",
        "statuteQuote": "If payments under a construction contract are subject to retainage, any amounts that have been retained during the performance of the contract and that are due to be released to the contractor upon final completion shall be paid within 30 days after final acceptance of the work.",
        "relatedSections": [
          "9 V.S.A. Sec. 4001 (definitions; 'Owner' includes the State, municipalities and school districts)",
          "9 V.S.A. Sec. 4007 (disputes; 1% per month penalty; attorney's fees)",
          "9 V.S.A. Sec. 4005a (funds held in express trust; no express trust required for federal, State or municipal projects)",
          "9 V.S.A. Sec. 4009 (chapter does not apply to materials bought by a natural person working on their own property)"
        ],
        "effectiveOrAmended": "Added 1991, No. 74, Sec. 1, eff. Jan. 1, 1992; amended 2017, No. 179 (Adj. Sess.), Sec. 3."
      },
      "public": {
        "regulated": true,
        "capPct": null,
        "capNote": "Vermont sets no percentage cap. It regulates timing instead: retainage must be paid within 30 days after final acceptance. A contractor or subcontractor may not hold retainage on delivered materials that are covered by a manufacturer's warranty or graded to industry standards (Sec. 4005(e)), except where the party is both materialman and installer. The chapter reaches public work because 'Owner' is defined to include the State of Vermont and its instrumentalities and subdivisions, including municipalities and school districts.",
        "stepDown": null,
        "releaseTrigger": "Final acceptance of the work (and, where the owner holds no retainage but a contractor does hold it from its subcontractor, the same 30-day clock from final acceptance applies).",
        "releaseDeadlineDays": 30,
        "releaseQuote": "If payments under a construction contract are subject to retainage, any amounts that have been retained during the performance of the contract and that are due to be released to the contractor upon final completion shall be paid within 30 days after final acceptance of the work.",
        "interestOrPenalty": "Unreasonably withholding acceptance or failing to pay retainage triggers the interest, penalty and fee provisions of Sec. 4002, Sec. 4003 and Sec. 4007: a penalty of 1% per month of sums wrongfully withheld, plus reasonable attorney's fees and expenses to the substantially prevailing party.",
        "securitiesSubstitution": null,
        "appliesToSubs": true,
        "statute": "9 V.S.A. Sec. 4005.",
        "statuteUrl": "https://legislature.vermont.gov/statutes/section/09/102/04005",
        "statuteQuote": "If payments under a construction contract are subject to retainage, any amounts that have been retained during the performance of the contract and that are due to be released to the contractor upon final completion shall be paid within 30 days after final acceptance of the work.",
        "relatedSections": [
          "9 V.S.A. Sec. 4001 (definitions; 'Owner' includes the State, municipalities and school districts)",
          "9 V.S.A. Sec. 4007 (disputes; 1% per month penalty; attorney's fees)",
          "9 V.S.A. Sec. 4005a (funds held in express trust; no express trust required for federal, State or municipal projects)",
          "9 V.S.A. Sec. 4009 (chapter does not apply to materials bought by a natural person working on their own property)"
        ],
        "effectiveOrAmended": "Added 1991, No. 74, Sec. 1, eff. Jan. 1, 1992; amended 2017, No. 179 (Adj. Sess.), Sec. 3."
      },
      "summary": "Private jobs: no cap on the retainage percentage, but whatever is held must be paid within 30 days after final acceptance of the work, subcontractors must be paid their share within 7 days after the contractor receives it, and wrongful withholding carries a 1%-per-month penalty plus attorney's fees. Public jobs: the same chapter applies, because 'Owner' expressly includes the State, municipalities and school districts, so the same 30-day-after-final-acceptance rule and 1%-per-month penalty govern state and local work.",
      "prose": [],
      "confidence": "high",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "vt-0",
        "vt-1",
        "vt-2",
        "vt-3",
        "vt-4",
        "vt-5",
        "vt-6"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "WA",
      "name": "Washington",
      "private": {
        "regulated": null,
        "capPct": null,
        "capNote": "RCW 60.28.011 is expressly limited to 'public improvement contracts' and 'public bodies'.",
        "stepDown": null,
        "releaseTrigger": null,
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": null,
        "statuteUrl": null,
        "statuteQuote": null,
        "relatedSections": [],
        "effectiveOrAmended": null
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "Retainage on public improvement contracts may not exceed 5% of moneys earned, and it is held as a trust fund for claims and for state taxes. Contracts funded wholly or partly by federal transportation funds must rely on the contract bond instead of retainage. Any reservation from moneys earned other than as allowed by subsection (1) is prohibited.",
        "stepDown": "The contractor may at any time request that the retainage be reduced to 100% of the value of the work remaining on the project. After completion of all work other than landscaping, the contractor may request full release, subject to continuing retention of 5% of moneys earned for landscaping.",
        "releaseTrigger": "Completion of all contract work (or, on the general contractor/construction manager delivery method, acceptance of a completed subcontract plus a 45-day lien-notice period under RCW 60.28.021).",
        "releaseDeadlineDays": 60,
        "releaseQuote": "Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapter 39.12 RCW and this chapter.",
        "interestOrPenalty": "No late-release penalty in this section. Interest follows the money: if retainage is deposited in an interest-bearing account or escrow, the interest is paid to the contractor, and a contractor or subcontractor holding retainage from a lower tier must pay that tier interest at the rate it receives on reserved funds.",
        "securitiesSubstitution": true,
        "appliesToSubs": true,
        "statute": "RCW 60.28.011.",
        "statuteUrl": "https://app.leg.wa.gov/RCW/default.aspx?cite=60.28.011",
        "statuteQuote": "Except as provided in (b) of this subsection, public improvement contracts must provide, and public bodies must reserve, a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of: (i) The claims of any person arising under the contract; and (ii) the state with respect to taxes...",
        "relatedSections": [
          "RCW 60.28.011(5) (contractor/subcontractor may withhold not more than 5% from lower tiers, with interest)",
          "RCW 60.28.011(6) (bond in lieu of retainage; release of bonded retainage within 30 days)",
          "RCW 60.28.021 (retainage release procedure)",
          "chapter 39.08 RCW (contract bond)",
          "chapter 39.12 RCW (prevailing wages)"
        ],
        "effectiveOrAmended": "[2017 c 302 s 1; 2015 c 280 s 1; 2013 c 113 s 1; 2011 c 231 s 2; prior: 2009 c 432 s 5; 2009 c 219 s 6; ... 1992 c 223 s 2.]"
      },
      "summary": "Public jobs: a public body may reserve no more than 5% of moneys earned, must release and pay it in full 60 days after completion of all contract work, must accept a surety bond in lieu of retainage (releasing the bonded portion within 30 days), and a prime may not hold more than 5% from a subcontractor and must pass through the interest it earns.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "wa-0"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "WI",
      "name": "Wisconsin",
      "private": {
        "regulated": null,
        "capPct": null,
        "capNote": null,
        "stepDown": null,
        "releaseTrigger": null,
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": null,
        "statuteUrl": null,
        "statuteQuote": null,
        "relatedSections": [],
        "effectiveOrAmended": null
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "Wis. Stat. § 66.0901(9)(b) limits retainage to an amount equal to not more than 5 percent of the estimate until 50 percent of the work has been completed. At 50 percent completion further partial payments are made in full and no additional amounts may be retained unless the architect or engineer certifies that the job is not proceeding satisfactorily, in which case the total retainage may not be more than 10 percent of the value of the work completed.",
        "stepDown": "At 50 percent completion retainage stops; it may resume, up to a ceiling of 10 percent of the value of the work completed, only if the architect or engineer certifies that the job is not proceeding satisfactorily.",
        "releaseTrigger": "Retainage may be paid on substantial completion; the section sets no day-count deadline.",
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": "Wis. Stat. § 66.0901(9)(b).",
        "statuteUrl": "https://web.archive.org/web/20251119122920id_/https://docs.legis.wisconsin.gov/statutes/statutes/66/IX/0901",
        "statuteQuote": "The retainage shall be an amount equal to not more than 5 percent of the estimate until 50 percent of the work has been completed. At 50 percent completion, further partial payments shall be made in full to the contractor and no additional amounts may be retained unless the architect or engineer certifies that the job is not proceeding satisfactorily",
        "relatedSections": [],
        "effectiveOrAmended": null
      },
      "summary": "Public work: on local public construction contracts retainage is limited to not more than 5 percent of the estimate until the work is 50 percent complete, after which nothing further may be retained unless the architect or engineer certifies unsatisfactory progress (ceiling 10 percent of the value of work completed); the section fixes no day-count release deadline. This record covers public work only.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "wi-0",
        "wi-1",
        "wi-2"
      ],
      "openQuestions": null
    },
    {
      "jurisdiction": "WY",
      "name": "Wyoming",
      "private": {
        "regulated": null,
        "capPct": null,
        "capNote": "Title 16 ch. 6 (the retainage provisions read here) applies only to contracts with a 'public entity' for a 'public work'.",
        "stepDown": null,
        "releaseTrigger": null,
        "releaseDeadlineDays": null,
        "releaseQuote": null,
        "interestOrPenalty": null,
        "securitiesSubstitution": null,
        "appliesToSubs": null,
        "statute": null,
        "statuteUrl": null,
        "statuteQuote": null,
        "relatedSections": [],
        "effectiveOrAmended": null
      },
      "public": {
        "regulated": true,
        "capPct": 5,
        "capNote": "A public entity may retain no more than 5% of the calculated value of completed work, and the retained payment must be held in an account in the contractor's name that is assigned to the public entity. The article does not apply where federal or other outside funding imposes inconsistent retention or payment requirements (W.S. 16-6-706).",
        "stepDown": "Discretionary early release rather than an automatic step-down: if the public entity finds satisfactory progress is being made in all phases, it may, on the contractor's written request, authorize payment from the withheld percentage, after determining satisfactory and substantial reasons exist and obtaining written approval from any surety.",
        "releaseTrigger": "Substantial completion: the public entity issues a certificate of substantial completion, publishes notice weekly for two consecutive weeks and posts it, and payment of retainage falls due on the 41st day after that notice was first published and posted, less amounts withheld for incomplete or nonconforming portions (which are paid at final completion).",
        "releaseDeadlineDays": 41,
        "releaseQuote": "Upon the forty-first day after the notice required under paragraph (ii) of this subsection was first published and posted, the public entity under whose direction or supervision the work has been carried on shall pay to the general contractor any payment retained by the public entity under W.S. 16-6-702(b) together with any other amount due under the contract, less any amount withheld for the portion of the public work that is incomplete or not completed in accordance with the contract and associated documents",
        "interestOrPenalty": "No late-release penalty in the article. On contracts over $50,000 the public entity must, if the general contractor requests, enter an interest-bearing deposit agreement with the contractor's designated depository, and all interest and income on deposited obligations is collected and paid to the contractor.",
        "securitiesSubstitution": true,
        "appliesToSubs": null,
        "statute": "Wyo. Stat. Sec. 16-6-702(b).",
        "statuteUrl": "https://wyoleg.gov/statutes/compress/title16.pdf",
        "statuteQuote": "In all contracts with a public entity for a public work, the public entity may retain no more than five percent (5%) of the calculated value of any work completed as retainage. The retained payment shall be due and payable as prescribed by W.S. 16-6-116(a). The retained payment shall be held in an account in the name of the contractor which account has been assigned to the public entity.",
        "relatedSections": [
          "Wyo. Stat. Sec. 16-6-116 (certificates of substantial and final completion; published notice; payment on the 41st day)",
          "Wyo. Stat. Sec. 16-6-703 (completion by the public entity; application of retained payment)",
          "Wyo. Stat. Sec. 16-6-704 and Sec. 16-6-705 (interest-bearing deposit agreement; interest paid to contractor)",
          "Wyo. Stat. Sec. 16-6-706 (inapplicable where federal or other funding imposes inconsistent requirements)",
          "Wyo. Stat. Sec. 16-6-117 (claims against the general contractor's surety bond)"
        ],
        "effectiveOrAmended": null
      },
      "summary": "Public jobs: a public entity may hold no more than 5% of the value of completed work in an account in the contractor's name, must publish notice of substantial completion for two consecutive weeks, and must pay the retainage on the 41st day after that notice first ran, holding back only what covers incomplete or nonconforming work until final completion.",
      "prose": [],
      "confidence": "medium",
      "verified": true,
      "verifiedAt": "2026-09-22",
      "publishable": true,
      "sourceIds": [
        "wy-0"
      ],
      "openQuestions": null
    }
  ]
}