Arizona
For Arizona, public project retainage cap (%) is 10% before 50% complete; 5% after 50% complete; private project retainage cap (%) is no statutory cap in this section; release deadline is within 60 days after final completion and acceptance; escrow required is no (substitute security option available); milestone reduction is at 50% completion, half of retained amount returned and rate drops to 5%, recorded from its source on 2026-08-17.
- State
- Arizona
- Public project retainage cap (%)
- 10% before 50% complete; 5% after 50% complete
- Private project retainage cap (%)
- no statutory cap in this section
- Release deadline
- within 60 days after final completion and acceptance
- Escrow required
- no (substitute security option available)
- Milestone reduction
- at 50% completion, half of retained amount returned and rate drops to 5%
- Statutory citation
- Ariz. Rev. Stat. § 41-2576 our reading
Values marked our reading are our classification of what the source says — the source does not print them in those words. The quote below is the evidence for each one; judge it yourself.
What the source says
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.
— codes.findlaw.com, retrieved 2026-08-17
Source
- codes.findlaw.comhttps://codes.findlaw.com/az/title-41-state-government/az-rev-st-sect-41-2576.html