Reference Source

Texas

For Texas, public project retainage cap (%) is 10% (contracts <$5M); 5% (contracts ≥$5M); private project retainage cap (%) is no statutory cap; release deadline is upon completion of the work required to be performed under the contract; escrow required is optional (contracts ≥$10M, by agreement); milestone reduction is none, recorded from its source on 2026-08-17.

State
Texas
Public project retainage cap (%)
10% (contracts <$5M); 5% (contracts ≥$5M)
Private project retainage cap (%)
no statutory cap
Release deadline
upon completion of the work required to be performed under the contract
Escrow required
optional (contracts ≥$10M, by agreement)
Milestone reduction
none
Statutory citation
Tex. Gov't Code § 2252.032 our reading
Sourcetexas.public.law
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DatasetConstruction retainage limits by US state — maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations

Values marked our reading are our classification of what the source says — the source does not print them in those words. The quote below is the evidence for each one; judge it yourself.

What the source says

if the total value of a public works contract is less than $5 million, a governmental entity may not withhold retainage in an amount that exceeds 10 percent of the contract price and the rate of retainage may not exceed 10 percent for any item in a bid schedule or schedule of values for the project, including materials and equipment delivered on site to be installed;

texas.public.law, retrieved 2026-08-17

Source

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