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

For Minnesota, public project retainage cap (%) is 5%; private project retainage cap (%) is 5%; release deadline is 60 days after substantial completion; escrow required is no; milestone reduction is owner may reduce or eliminate retainage if work is progressing satisfactorily, recorded from its source on 2026-08-17.

- **State:** Minnesota
- **Public project retainage cap (%):** 5%
- **Private project retainage cap (%):** 5%
- **Release deadline:** 60 days after substantial completion
- **Escrow required:** no
- **Milestone reduction:** owner may reduce or eliminate retainage if work is progressing satisfactorily _(verified: appears in the quote below)_
- **Statutory citation:** Minn. Stat. § 337.10 _(our reading, not quoted from the source)_

## What the source says

> Retainage on a building and construction contract may not exceed five percent. An owner or owner's agent may reduce the amount of retainage and may eliminate retainage on any monthly contract payment if, in the owner's opinion, the work is progressing satisfactorily.

## Source

- https://www.revisor.mn.gov/statutes/cite/337.10

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/).