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

For Iowa, public project retainage cap (%) is 5%; private project retainage cap (%) is no statutory cap in this section; release deadline is per section 573.14; escrow required is no; milestone reduction is none, recorded from its source on 2026-08-17.

- **State:** Iowa
- **Public project retainage cap (%):** 5%
- **Private project retainage cap (%):** no statutory cap in this section
- **Release deadline:** per section 573.14
- **Escrow required:** no
- **Milestone reduction:** none
- **Statutory citation:** Iowa Code § 573.12 _(our reading, not quoted from the source)_

## What the source says

> The public corporation shall retain from each monthly payment not more than five percent of that amount which is determined to be due according to the estimate of the architect or engineer.

## Source

- https://www.legis.iowa.gov/docs/iacode/2001/573/12.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/).