{"asset": "construction-retainage-limits-by-state", "asset_type": "retention-limit", "body": "State-by-state comparison of the statutory rules governing retainage (retention) on construction contracts. Each record is one state with the maximum retainage percentage for public and private projects, the deadline for releasing retained funds after substantial completion, whether retainage must be held in an interest-bearing escrow account, whether the cap is reduced after a completion milestone (e.g. 50% complete), and the statutory citation. Caps range from 0% (New Mexico) to 10%, with a strong trend toward 5%. Answers 'how much retainage can be withheld on my project in [state]', 'when must retainage be released', and 'does my state require retainage escrow'.\n", "description": "State-by-state comparison of the statutory rules governing retainage (retention) on construction contracts. Each record is one state with the maximum retainage percentage for public and private projects, the deadline for releasing retained funds after substantial completion, whether retainage must be held in an interest-bearing escrow account, whether the cap is reduced after a completion milestone (e.g. 50% complete), and the statutory citation. Caps range from 0% (New Mexico) to 10%, with a strong trend toward 5%. Answers 'how much retainage can be withheld on my project in [state]', 'when must retainage be released', and 'does my state require retainage escrow'.", "file": "index.md", "generated": true, "harvested": "2026-08-15", "key_field": "state", "licence": "unknown", "sources": ["https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=10261.&lawCode=PCC", "https://constructioncoverage.com/glossary/retainage", "http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0255/Sections/0255.078.html", "https://www.leg.state.nv.us/nrs/nrs-338.html", "https://law.lis.virginia.gov/vacode/2.2-4333/"], "stale_after": "2027-08-15", "title": "Construction retainage limits by US state \u2014 maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations", "type": "dataset", "verified": false}
{"asset": "construction-retainage-limits-by-state", "body": "**State:** California\n\n**Public project retainage cap (%):** 5%\n\n**Private project retainage cap (%):** not addressed in this statute\n\n**Release deadline:** upon final completion and acceptance of the project\n\n**Escrow required:** not addressed in this statute\n\n**Milestone reduction:** after 95% of the work has been completed, the department may reduce the funds withheld to an amount not less than 125 percent of the estimated value of the work yet to be completed\n\n**Statutory citation:** Cal. Pub. Cont. Code \u00a7 10261\n\n> The department shall withhold not more than 5 percent of the contract price until final completion and acceptance of the project. However, at any time after 95 percent of the work has been completed, the department may reduce the funds withheld to an amount not less than 125 percent of the estimated value of the work yet to be completed\n\nSource: <https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=10261.&lawCode=PCC>\n", "escrow_required": "not addressed in this statute", "file": "california.md", "generated": true, "harvested": "2026-08-15", "id": "california", "milestone_reduction": "after 95% of the work has been completed, the department may reduce the funds withheld to an amount not less than 125 percent of the estimated value of the work yet to be completed", "private_cap_pct": "not addressed in this statute", "public_cap_pct": "5%", "release_deadline": "upon final completion and acceptance of the project", "source_quote": "The department shall withhold not more than 5 percent of the contract price until final completion and acceptance of the project. However, at any time after 95 percent of the work has been completed, the department may reduce the funds withheld to an amount not less than 125 percent of the estimated value of the work yet to be completed", "sources": ["https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=10261.&lawCode=PCC"], "stale_after": "2027-08-15", "state": "California", "statutory_citation": "Cal. Pub. Cont. Code \u00a7 10261", "title": "California \u2014 Construction retainage limits by US state \u2014 maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations", "type": "retention-limit", "unverified_fields": "escrow_required, private_cap_pct, public_cap_pct, release_deadline, state, statutory_citation", "verified": false}
{"asset": "construction-retainage-limits-by-state", "body": "**State:** Connecticut\n\n**Public project retainage cap (%):** no statutory cap stated on this page\n\n**Private project retainage cap (%):** no statutory cap stated on this page\n\n**Release deadline:** not stated on this page\n\n**Escrow required:** public only\n\n**Milestone reduction:** none\n\n**Statutory citation:** not stated on this page\n\n> Some states, including Connecticut, Louisiana, Michigan, Ohio, and Tennessee, require retainage for certain state-funded public projects to be held in interest-bearing escrow accounts\n\nSource: <https://constructioncoverage.com/glossary/retainage>\n", "escrow_required": "public only", "file": "connecticut.md", "generated": true, "harvested": "2026-08-15", "id": "connecticut", "milestone_reduction": "none", "private_cap_pct": "no statutory cap stated on this page", "public_cap_pct": "no statutory cap stated on this page", "release_deadline": "not stated on this page", "source_quote": "Some states, including Connecticut, Louisiana, Michigan, Ohio, and Tennessee, require retainage for certain state-funded public projects to be held in interest-bearing escrow accounts", "sources": ["https://constructioncoverage.com/glossary/retainage"], "stale_after": "2027-08-15", "state": "Connecticut", "statutory_citation": "not stated on this page", "title": "Connecticut \u2014 Construction retainage limits by US state \u2014 maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations", "type": "retention-limit", "unverified_fields": "escrow_required, milestone_reduction, private_cap_pct, public_cap_pct, release_deadline, statutory_citation", "verified": true}
{"asset": "construction-retainage-limits-by-state", "body": "**State:** Florida\n\n**Public project retainage cap (%):** 5%\n\n**Private project retainage cap (%):** no statutory cap\n\n**Release deadline:** same time limits for payment of a payment request apply regardless of whether the payment request is for, or includes, retainage\n\n**Escrow required:** no\n\n**Milestone reduction:** none\n\n**Statutory citation:** Fla. Stat. \u00a7 255.078\n\n> a public entity may withhold from each progress payment made to the contractor an amount not exceeding 5 percent of the payment as retainage.\n\nSource: <http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0255/Sections/0255.078.html>\n", "escrow_required": "no", "file": "florida.md", "generated": true, "harvested": "2026-08-15", "id": "florida", "milestone_reduction": "none", "private_cap_pct": "no statutory cap", "public_cap_pct": "5%", "release_deadline": "same time limits for payment of a payment request apply regardless of whether the payment request is for, or includes, retainage", "source_quote": "a public entity may withhold from each progress payment made to the contractor an amount not exceeding 5 percent of the payment as retainage.", "sources": ["http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0255/Sections/0255.078.html"], "stale_after": "2027-08-15", "state": "Florida", "statutory_citation": "Fla. Stat. \u00a7 255.078", "title": "Florida \u2014 Construction retainage limits by US state \u2014 maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations", "type": "retention-limit", "unverified_fields": "escrow_required, milestone_reduction, private_cap_pct, public_cap_pct, release_deadline, state, statutory_citation", "verified": false}
{"asset": "construction-retainage-limits-by-state", "body": "**State:** Louisiana\n\n**Public project retainage cap (%):** no statutory cap stated on this page\n\n**Private project retainage cap (%):** no statutory cap stated on this page\n\n**Release deadline:** not stated on this page\n\n**Escrow required:** yes\n\n**Milestone reduction:** none\n\n**Statutory citation:** not stated on this page\n\n> Some states, including Connecticut, Louisiana, Michigan, Ohio, and Tennessee, require retainage for certain state-funded public projects to be held in interest-bearing escrow accounts, providing additional security for contractors. This requirement does not typically extend to private projects, although some states, such as Tennessee and Louisiana, do mandate interest-bearing escrow accounts for private construction retainage.\n\nSource: <https://constructioncoverage.com/glossary/retainage>\n", "escrow_required": "yes", "file": "louisiana.md", "generated": true, "harvested": "2026-08-15", "id": "louisiana", "milestone_reduction": "none", "private_cap_pct": "no statutory cap stated on this page", "public_cap_pct": "no statutory cap stated on this page", "release_deadline": "not stated on this page", "source_quote": "Some states, including Connecticut, Louisiana, Michigan, Ohio, and Tennessee, require retainage for certain state-funded public projects to be held in interest-bearing escrow accounts, providing additional security for contractors. This requirement does not typically extend to private projects, although some states, such as Tennessee and Louisiana, do mandate interest-bearing escrow accounts for private construction retainage.", "sources": ["https://constructioncoverage.com/glossary/retainage"], "stale_after": "2027-08-15", "state": "Louisiana", "statutory_citation": "not stated on this page", "title": "Louisiana \u2014 Construction retainage limits by US state \u2014 maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations", "type": "retention-limit", "unverified_fields": "escrow_required, milestone_reduction, private_cap_pct, public_cap_pct, release_deadline, statutory_citation", "verified": true}
{"asset": "construction-retainage-limits-by-state", "body": "**State:** Michigan\n\n**Public project retainage cap (%):** no statutory cap stated on this page\n\n**Private project retainage cap (%):** no statutory cap stated on this page\n\n**Release deadline:** not stated on this page\n\n**Escrow required:** public only\n\n**Milestone reduction:** none\n\n**Statutory citation:** not stated on this page\n\n> Some states, including Connecticut, Louisiana, Michigan, Ohio, and Tennessee, require retainage for certain state-funded public projects to be held in interest-bearing escrow accounts\n\nSource: <https://constructioncoverage.com/glossary/retainage>\n", "escrow_required": "public only", "file": "michigan.md", "generated": true, "harvested": "2026-08-15", "id": "michigan", "milestone_reduction": "none", "private_cap_pct": "no statutory cap stated on this page", "public_cap_pct": "no statutory cap stated on this page", "release_deadline": "not stated on this page", "source_quote": "Some states, including Connecticut, Louisiana, Michigan, Ohio, and Tennessee, require retainage for certain state-funded public projects to be held in interest-bearing escrow accounts", "sources": ["https://constructioncoverage.com/glossary/retainage"], "stale_after": "2027-08-15", "state": "Michigan", "statutory_citation": "not stated on this page", "title": "Michigan \u2014 Construction retainage limits by US state \u2014 maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations", "type": "retention-limit", "unverified_fields": "escrow_required, milestone_reduction, private_cap_pct, public_cap_pct, release_deadline, statutory_citation", "verified": true}
{"asset": "construction-retainage-limits-by-state", "body": "**State:** Nevada\n\n**Public project retainage cap (%):** 5%\n\n**Private project retainage cap (%):** no statutory cap\n\n**Release deadline:** within 30 days after occupancy, use, or recording of notice of completion, whichever occurs first\n\n**Escrow required:** no\n\n**Milestone reduction:** after 50% of the work has been completed, the public body may pay remaining progress payments without withholding additional retainage\n\n**Statutory citation:** NRS 338.515\n\n> 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.\n\nSource: <https://www.leg.state.nv.us/nrs/nrs-338.html>\n", "escrow_required": "no", "file": "nevada.md", "generated": true, "harvested": "2026-08-15", "id": "nevada", "milestone_reduction": "after 50% of the work has been completed, the public body may pay remaining progress payments without withholding additional retainage", "private_cap_pct": "no statutory cap", "public_cap_pct": "5%", "release_deadline": "within 30 days after occupancy, use, or recording of notice of completion, whichever occurs first", "source_quote": "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.", "sources": ["https://www.leg.state.nv.us/nrs/nrs-338.html"], "stale_after": "2027-08-15", "state": "Nevada", "statutory_citation": "NRS 338.515", "title": "Nevada \u2014 Construction retainage limits by US state \u2014 maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations", "type": "retention-limit", "unverified_fields": "escrow_required, milestone_reduction, private_cap_pct, public_cap_pct, release_deadline, state, statutory_citation", "verified": false}
{"asset": "construction-retainage-limits-by-state", "body": "**State:** New Mexico\n\n**Public project retainage cap (%):** 0%\n\n**Private project retainage cap (%):** 0%\n\n**Release deadline:** not applicable\n\n**Escrow required:** no\n\n**Milestone reduction:** none\n\n**Statutory citation:** N.M. Stat.\n\n> New Mexico prohibits retainage for most publicly and privately funded projects\n\nSource: <https://constructioncoverage.com/glossary/retainage>\n", "escrow_required": "no", "file": "new-mexico.md", "generated": true, "harvested": "2026-08-15", "id": "new-mexico", "milestone_reduction": "none", "private_cap_pct": "0%", "public_cap_pct": "0%", "release_deadline": "not applicable", "source_quote": "New Mexico prohibits retainage for most publicly and privately funded projects", "sources": ["https://constructioncoverage.com/glossary/retainage"], "stale_after": "2027-08-15", "state": "New Mexico", "statutory_citation": "N.M. Stat.", "title": "New Mexico \u2014 Construction retainage limits by US state \u2014 maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations", "type": "retention-limit", "unverified_fields": "escrow_required, milestone_reduction, private_cap_pct, public_cap_pct, release_deadline, statutory_citation", "verified": true}
{"asset": "construction-retainage-limits-by-state", "body": "**State:** New York\n\n**Public project retainage cap (%):** 5%\n\n**Private project retainage cap (%):** 5%\n\n**Release deadline:** not stated on this page\n\n**Escrow required:** not stated on this page\n\n**Milestone reduction:** none\n\n**Statutory citation:** not stated on this page\n\n> a 5% cap is now the legal maximum in many states, including California and New York\n\nSource: <https://constructioncoverage.com/glossary/retainage>\n", "escrow_required": "not stated on this page", "file": "new-york.md", "generated": true, "harvested": "2026-08-15", "id": "new-york", "milestone_reduction": "none", "private_cap_pct": "5%", "public_cap_pct": "5%", "release_deadline": "not stated on this page", "source_quote": "a 5% cap is now the legal maximum in many states, including California and New York", "sources": ["https://constructioncoverage.com/glossary/retainage"], "stale_after": "2027-08-15", "state": "New York", "statutory_citation": "not stated on this page", "title": "New York \u2014 Construction retainage limits by US state \u2014 maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations", "type": "retention-limit", "unverified_fields": "escrow_required, milestone_reduction, release_deadline, statutory_citation", "verified": true}
{"asset": "construction-retainage-limits-by-state", "body": "**State:** Ohio\n\n**Public project retainage cap (%):** no statutory cap stated on this page\n\n**Private project retainage cap (%):** no statutory cap stated on this page\n\n**Release deadline:** not stated on this page\n\n**Escrow required:** public only\n\n**Milestone reduction:** none\n\n**Statutory citation:** not stated on this page\n\n> Some states, including Connecticut, Louisiana, Michigan, Ohio, and Tennessee, require retainage for certain state-funded public projects to be held in interest-bearing escrow accounts\n\nSource: <https://constructioncoverage.com/glossary/retainage>\n", "escrow_required": "public only", "file": "ohio.md", "generated": true, "harvested": "2026-08-15", "id": "ohio", "milestone_reduction": "none", "private_cap_pct": "no statutory cap stated on this page", "public_cap_pct": "no statutory cap stated on this page", "release_deadline": "not stated on this page", "source_quote": "Some states, including Connecticut, Louisiana, Michigan, Ohio, and Tennessee, require retainage for certain state-funded public projects to be held in interest-bearing escrow accounts", "sources": ["https://constructioncoverage.com/glossary/retainage"], "stale_after": "2027-08-15", "state": "Ohio", "statutory_citation": "not stated on this page", "title": "Ohio \u2014 Construction retainage limits by US state \u2014 maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations", "type": "retention-limit", "unverified_fields": "escrow_required, milestone_reduction, private_cap_pct, public_cap_pct, release_deadline, statutory_citation", "verified": true}
{"asset": "construction-retainage-limits-by-state", "body": "**State:** Tennessee\n\n**Public project retainage cap (%):** no statutory cap stated on this page\n\n**Private project retainage cap (%):** no statutory cap stated on this page\n\n**Release deadline:** not stated on this page\n\n**Escrow required:** yes\n\n**Milestone reduction:** none\n\n**Statutory citation:** not stated on this page\n\n> Some states, including Connecticut, Louisiana, Michigan, Ohio, and Tennessee, require retainage for certain state-funded public projects to be held in interest-bearing escrow accounts, providing additional security for contractors. This requirement does not typically extend to private projects, although some states, such as Tennessee and Louisiana, do mandate interest-bearing escrow accounts for private construction retainage.\n\nSource: <https://constructioncoverage.com/glossary/retainage>\n", "escrow_required": "yes", "file": "tennessee.md", "generated": true, "harvested": "2026-08-15", "id": "tennessee", "milestone_reduction": "none", "private_cap_pct": "no statutory cap stated on this page", "public_cap_pct": "no statutory cap stated on this page", "release_deadline": "not stated on this page", "source_quote": "Some states, including Connecticut, Louisiana, Michigan, Ohio, and Tennessee, require retainage for certain state-funded public projects to be held in interest-bearing escrow accounts, providing additional security for contractors. This requirement does not typically extend to private projects, although some states, such as Tennessee and Louisiana, do mandate interest-bearing escrow accounts for private construction retainage.", "sources": ["https://constructioncoverage.com/glossary/retainage"], "stale_after": "2027-08-15", "state": "Tennessee", "statutory_citation": "not stated on this page", "title": "Tennessee \u2014 Construction retainage limits by US state \u2014 maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations", "type": "retention-limit", "unverified_fields": "escrow_required, milestone_reduction, private_cap_pct, public_cap_pct, release_deadline, statutory_citation", "verified": true}
{"asset": "construction-retainage-limits-by-state", "body": "**State:** Virginia\n\n**Public project retainage cap (%):** 5%\n\n**Private project retainage cap (%):** no statutory cap\n\n**Release deadline:** included in the final payment\n\n**Escrow required:** no\n\n**Milestone reduction:** none\n\n**Statutory citation:** Va. Code \u00a7 2.2-4333\n\n> 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.\n\nSource: <https://law.lis.virginia.gov/vacode/2.2-4333/>\n", "escrow_required": "no", "file": "virginia.md", "generated": true, "harvested": "2026-08-15", "id": "virginia", "milestone_reduction": "none", "private_cap_pct": "no statutory cap", "public_cap_pct": "5%", "release_deadline": "included in the final payment", "source_quote": "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.", "sources": ["https://law.lis.virginia.gov/vacode/2.2-4333/"], "stale_after": "2027-08-15", "state": "Virginia", "statutory_citation": "Va. Code \u00a7 2.2-4333", "title": "Virginia \u2014 Construction retainage limits by US state \u2014 maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations", "type": "retention-limit", "unverified_fields": "milestone_reduction, private_cap_pct, public_cap_pct, state, statutory_citation", "verified": false}