# Illinois — Construction retainage limits by US state — maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations

For Illinois, public project retainage cap (%) is 10% before 50% complete; 5% after 50% complete; private project retainage cap (%) is 10% before 50% complete; 5% after 50% complete; release deadline is not specified in this section; escrow required is no; milestone reduction is at 50% completion, retainage reduced to no more than 5%, recorded from its source on 2026-08-17.

- **State:** Illinois
- **Public project retainage cap (%):** 10% before 50% complete; 5% after 50% complete
- **Private project retainage cap (%):** 10% before 50% complete; 5% after 50% complete
- **Release deadline:** not specified in this section
- **Escrow required:** no _(verified: appears in the quote below)_
- **Milestone reduction:** at 50% completion, retainage reduced to no more than 5% _(verified: appears in the quote below)_
- **Statutory citation:** 815 ILCS 603/20 _(our reading, not quoted from the source)_

## What the source says

> A construction contract may provide for the withholding of retainage of up to 10% of any payment made prior to the completion of 50% of the contract. When a contract is 50% complete, retainage withheld shall be reduced so that no more than 5% is held. After the contract is 50% complete, no more than 5% of the amount of any subsequent payments made under the contract may be held as retainage.

## Source

- https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=081506030K20

Last verified: 2026-08-17. Review by: 2027-08-17.
Part of [Construction retainage limits by US state — maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations](https://referencesource.org/construction-retainage-limits-by-state/).