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

For Indiana, public project retainage cap (%) is per contract terms (escrow required when withheld); private project retainage cap (%) is no statutory cap; release deadline is per contract terms; escrow required is yes; milestone reduction is none, recorded from its source on 2026-08-17.

- **State:** Indiana _(verified: appears in the quote below)_
- **Public project retainage cap (%):** per contract terms (escrow required when withheld)
- **Private project retainage cap (%):** no statutory cap
- **Release deadline:** per contract terms
- **Escrow required:** yes
- **Milestone reduction:** none
- **Statutory citation:** Ind. Code § 5-16-5-5.3 _(our reading, not quoted from the source)_

## What the source says

> provision for retainage shall include in their respective contracts a provision that at the time any retainage is withheld, the state agency and/or contractor shall place such retainage in an escrow account, with a bank, savings and loan institution, or the State of Indiana or an instrumentality thereof, as escrow agent selected by mutual agreement

## Source

- https://codes.findlaw.com/in/title-5-state-and-local-administration/in-code-sect-5-16-5-5-3.html

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/).