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Retainage · Florida

Florida retainage law: 5% public cap, 20-business-day release (2026)

By Sami Chicha, EditorUpdated Checked against primary sources · not yet reviewed by a licensed professionalFact-checked
Quick answer

Florida public entities may withhold at most 5% of each progress payment (Fla. Stat. §§ 255.078, 218.735; § 255.078 exempts contracts of $200,000 or less) and pay the balance, less 150% of the cost to finish the punch list, within 20 business days after the list is made (§ 255.077). Private work has no cap; the balance with retainage is due within 14 days of substantial and punch-list completion (§ 715.12).

Private work

Florida · Private workVerified 2026-09-22
Retainage cap
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)).
Deadline
14 days
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.
Statute
Fla. Stat. § 715.12 (Construction Contract Prompt Payment Law).
What the statute says
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.
Fla. Stat. § 715.12 (Construction Contract Prompt Payment Law). · Archived copy of the official text, captured 2025-03-30

Public work

Florida · Public workVerified 2026-09-22
Retainage cap
5%
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).
Deadline
20 days
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)).
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.
What the statute says
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.
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. · Archived copy of the official text, captured 2026-03-06

Who this applies to

Public entities. Section 255.078 limits retainage on any public entity's contract for construction services [1], and § 218.735 applies the same ceiling to local governmental entities [3]. The state-level cap does not reach construction services with a total contract cost of $200,000 or less [1], or work paid for in whole or in part with federal funds subject to contrary federal requirements, and its 2020 amendments do not apply to contracts executed under chapter 337 [1].

Private owners. Section 715.12, the Construction Contract Prompt Payment Law, governs written contracts to improve real property for which part I of chapter 713 authorizes a construction lien, if entered into after December 31, 1992 [4]. It reaches down the chain too: any obligor and obligee may agree to withholding until completion of the entire project [4].

What the rule says

Florida caps the public side and puts the private side on a clock. A public entity may withhold up to 5% [1] of each progress payment, and it may choose to do less (a lower rate, a rate cut in steps under a schedule in the contract, or release of some or all retainage at any point), though none of that is required [1]. A private owner may hold back whatever portion of each progress payment the contract allows until substantial completion of the entire project, but once the triggering events have happened, the whole balance, retainage included, is due within 14 days [4].

How to comply

Public contracts: the punch-list sequence

  1. The contract has to provide for a list of incomplete items, developed within 30 calendar days [2] after substantial completion; on projects of $10 million [2] or more the contract may allow up to 45 calendar days [2].
  2. Within 20 business days [2] after the list is developed, and once a proper invoice or payment request is in, the entity pays the rest of the contract balance, retainage included, less 150% [2] of the estimated cost to complete the listed items.
  3. When the listed items are complete, the contractor may request the amount still held.
  4. If the entity does not develop the list in time, the contractor may bill for all remaining retainage. Payment is then due within 20 days under § 255.077(9) [2], or within 20 business days under § 218.735(7)(j) [3] when the entity is a local government.

Retainage released to the contractor that is attributable to a subcontractor's or supplier's work has to be passed on to them in a timely way [1].

Private contracts: the payout clock

The 14 days [4] run from any one of these events:

If the contract gives no deadline for the owner's punch list, the owner has 15 days [4] from the certificate of substantial completion, the certificate of occupancy or possession, whichever occurs first; with no punch list delivered in time, interest begins 14 days [4] after that first event. On a phased project the rule applies to each phase.

Retainage kept past the deadline accrues interest at the § 55.03 rate plus 12% a year [4], from the date payment was due until it is received, or at the contract rate if that is higher. The right to that interest cannot be waived before payment is due [4]. The contractor may also substitute Treasury or Florida securities, or insured certificates of deposit, for cash retainage [4].

What changed recently

Section 255.078 carries a history of ch. 2005-230, ch. 2020-173 and ch. 2023-134 [1], and § 255.077, which governs closeout and the punch list, lists the same three session laws [2].

Related

Run the numbers for Florida

How retainage is held on each payment and when it comes back: Retainage in construction. Bill it on the pay application template, which carries retainage on work and on stored materials.

Retainage laws: other states

Sources

  1. Fla. Stat. § 255.078 (2025 Florida Statutes), Online Sunshine, The Florida Legislature (archived copy, captured 2026-03-06)
  2. Fla. Stat. § 255.077 (2024 Florida Statutes), The Florida Senate (archived copy, captured 2025-02-10)
  3. Fla. Stat. § 218.735 (2024 Florida Statutes), The Florida Senate (archived copy, captured 2025-10-12)
  4. Fla. Stat. ch. 715 including § 715.12 (2024 Florida Statutes), The Florida Senate (archived copy, captured 2025-03-30)
  5. Fla. Stat. § 255.078 (public construction retainage), Online Sunshine (archived copy, captured 2026-03-06)
  6. Fla. Stat. § 255.077 (project closeout; payment of retainage), Florida Senate (archived copy, captured 2025-02-10)

Changelog

  1. : 1 more jurisdiction verified and published, 47 of 51 in all.
  2. : California private work corrected: Civ. Code § 8811 (SB 61) caps retention at 5% for contracts entered into on or after January 1, 2026; the row had said no cap.
  3. : Missouri private work corrected: Mo. Rev. Stat. §§ 436.300 to 436.336 cap private retainage at 10% and require release within 30 days of substantial completion; the row had said no private retainage rule.
  4. : Tennessee corrected: Tenn. Code Ann. § 66-34-203 caps owner-to-prime retainage at 5% of the contract, on public and private work; escrow applies to prime contracts of $500,000 or more, and the $300-a-day damages do not apply to public owners.
  5. : Idaho private work added: Idaho Code § 29-115 caps private retention at 5% and requires release within 35 days of final completion; the row had left private work out.
  6. : Rhode Island corrected: the 5% cap in R.I. Gen. Laws § 37-12-10.1 also covers private lienable work of $250,000 or more, and a retainage application may be submitted only 60 days after substantial completion unless the contract allows earlier.
  7. : Oklahoma public work corrected: since November 1, 2022, 61 O.S. §§ 113.1 and 226 reduce retainage to 2.5% of the amount earned to date after 50% completion with satisfactory progress, with no bond condition.
  8. : Montana public work corrected: state and local public contracts are capped at 5% under Mont. Code Ann. § 18-2-316, and final payment on building contracts is due within 30 days of final acceptance (§ 18-2-306).
  9. : Delaware public work corrected: 29 Del. C. § 6516(f)(3) requires retainage to be paid within 60 days after completion or notice of completion, with interest available from the 61st day; the row had no release deadline.
  10. : District of Columbia corrected: D.C. Code § 2-203.01 requires a 10% retent on District construction contracts until completion and acceptance, and the Private Contractor and Subcontractor Prompt Payment Act counts retainage as an undisputed amount due on its schedule; both rows had said no statute.
  11. : Colorado private work updated: HB26-1311 lets a contractor or subcontractor tender a retainage bond of up to 5% in lieu of retainage on contracts from August 12, 2026, and the owner must accept a compliant bond.
  12. : Kentucky private work updated: 2025 Ky. Acts ch. 156 raised the KRS 371.160 escrow threshold to $2,000,000 and barred waiving it by contract.
  13. : 10 more jurisdictions verified and published, 46 of 51 in all.
  14. : Page published.
  15. : Dataset first published with 36 of 51 jurisdictions verified.