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

For North Carolina, public project retainage cap (%) is 5%; private project retainage cap (%) is no statutory cap; release deadline is 60 days after substantial completion or beneficial occupancy; escrow required is no; milestone reduction is retainage eliminated after 50% complete with surety consent, recorded from its source on 2026-08-17.

- **State:** North Carolina
- **Public project retainage cap (%):** 5% _(verified: appears in the quote below)_
- **Private project retainage cap (%):** no statutory cap
- **Release deadline:** 60 days after substantial completion or beneficial occupancy
- **Escrow required:** no
- **Milestone reduction:** retainage eliminated after 50% complete with surety consent
- **Statutory citation:** N.C. Gen. Stat. § 143-134.1 _(our reading, not quoted from the source)_

## What the source says

> The owner shall not retain more than five percent (5%) of any periodic payment due a prime contractor.

## Source

- https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_143/GS_143-134.1.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/).