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

For Kentucky, public project retainage cap (%) is 10% until 50% complete, then 5%; private project retainage cap (%) is 10% until 50% complete, then 5%; release deadline is 30 days after substantial completion; escrow required is no; milestone reduction is retainage held after fifty-one percent (51%) of the construction project has been completed shall not be more than five percent (5%), recorded from its source on 2026-08-17.

- **State:** Kentucky
- **Public project retainage cap (%):** 10% until 50% complete, then 5%
- **Private project retainage cap (%):** 10% until 50% complete, then 5%
- **Release deadline:** 30 days after substantial completion
- **Escrow required:** no _(verified: appears in the quote below)_
- **Milestone reduction:** retainage held after fifty-one percent (51%) of the construction project has been completed shall not be more than five percent (5%) _(verified: appears in the quote below)_
- **Statutory citation:** KRS 371.410 _(our reading, not quoted from the source)_

## What the source says

> until fifty percent (50%) of the construction project has been completed in accordance with the contract, a contracting entity, contractor, or subcontractor may withhold no more than ten percent (10%) retainage from the amount of any undisputed payment due, and retainage held after fifty-one percent (51%) of the construction project has been completed shall not be more than five percent (5%) of the total contract amount.

## Source

- https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35259

Last verified: 2026-08-17. Review by: 2027-08-17.
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