Research dataset
Lien waiver and retainage laws by state
A state-by-state reference for construction AP teams: where statutory waiver forms apply, when waivers must be notarized, how much retainage can be withheld on public and private work, and when it has to be released. Every row cites its source.
Published · Last reviewed
Not legal advice.
This dataset summarizes statutes for operational reference only. Lien and retainage rules change, contain exceptions, and depend on contract terms and project type. Confirm requirements with construction counsel and the cited statute before relying on them for a payment or waiver decision.
Lien waiver rules by state
Whether the state prescribes statutory waiver forms, whether notarization is required, and the key rules AP teams need before releasing payment.
| State | Statutory forms | Notarization | Key rules | Source |
|---|---|---|---|---|
| Arizona(AZ) | Required: Conditional Waiver and Release on Progress Payment; Unconditional Waiver and Release on Progress Payment; Conditional Waiver and Release on Final Payment; Unconditional Waiver and Release on Final Payment | Not addressed by the statute; the forms end with a date, company name, signature and title. | Mandatory. A waiver and release is unenforceable unless it follows substantially one of the four statutory forms. | A.R.S. §33-1008 |
| California(CA) | Required: Conditional Waiver and Release on Progress Payment (§8132); Unconditional Waiver and Release on Progress Payment (§8134); Conditional Waiver and Release on Final Payment (§8136); Unconditional Waiver and Release on Final Payment (§8138) | Not addressed by the statute; the forms require a signature, title and date. | Mandatory. Each waiver is null, void and unenforceable unless it is in substantially the statutory form and signed by the claimant. | Cal. Civ. Code §§8120–8138 (forms at §§8132, 8134, 8136, 8138) |
| Florida(FL) | Optional / safe harbor: Waiver and Release of Lien upon Progress Payment (§713.20(4)); Waiver and Release of Lien upon Final Payment (§713.20(5)) | Not addressed for waivers; the forms end with a lienor signature line. (A release of a recorded lien under §713.21 must be notarized.) | Optional for the lienor, but binding on the payer. The waiver "may be" in the statutory form, a non-conforming waiver is enforceable by its terms, and no one may require a lienor to use a different form. | Fla. Stat. §713.20 |
| Georgia(GA) | Required: Waiver and Release of Lien and Payment Bond Rights upon Interim Payment; Waiver and Release of Lien and Payment Bond Rights upon Final Payment; Affidavit of Nonpayment | Not required on the waiver forms (they carry a seal, witness and address line). The Affidavit of Nonpayment is sworn before a notary. | Mandatory. No waiver is enforceable unless it uses the prescribed form (substantially, in at least 12-point font, including the required notice) and the claimant has been paid as the statute defines. | O.C.G.A. §44-14-366 |
| Massachusetts(MA) | Required in limited cases: Partial Waiver and Subordination of Lien | Not required; the form is signed under the penalties of perjury. | Limited. Agreements barring lien rights are void, with exceptions; one exception is a partial waiver given by a party that filed a notice of contract, which must follow the statutory form with no material deviation. | M.G.L. c. 254, §32 |
| Michigan(MI) | Required: Partial Unconditional Waiver; Partial Conditional Waiver; Full Unconditional Waiver; Full Conditional Waiver | Not addressed by the statute. | Mandatory. Waivers must use the statutory forms in substantially the prescribed format. | MCL 570.1115 |
| Mississippi(MS) | Required: Interim Waiver and Release upon Payment; Waiver and Release upon Final Payment; Affidavit of Nonpayment | The statutory forms include a notary jurat ("Sworn to and subscribed before me"). | Mandatory. Waivers must substantially follow the statutory forms, and a form without the required notice language is unenforceable. | Miss. Code §§85-7-419 and 85-7-433 |
| Missouri(MO) | Required in limited cases: Unconditional Final Lien Waiver for Residential Real Property | Not required for the waiver. | Limited. Residential property only: an unconditional final lien waiver is valid only on the statutory form. There is no statutory form for commercial work. | RSMo §429.016 |
| Nevada(NV) | Required: Conditional Waiver and Release upon Progress Payment; Unconditional Waiver and Release upon Progress Payment; Conditional Waiver and Release upon Final Payment; Unconditional Waiver and Release upon Final Payment | Not addressed by the statute. | Mandatory. A waiver is unenforceable unless it is in the statutory forms. | NRS 108.2457 |
| Texas(TX) | Required: Conditional Waiver and Release on Progress Payment; Unconditional Waiver and Release on Progress Payment; Conditional Waiver and Release on Final Payment; Unconditional Waiver and Release on Final Payment | No longer required for original contracts entered into on or after January 1, 2022 (HB 2237 removed the notarization requirement). Earlier contracts follow the prior law, which required it. | Mandatory. A waiver and release is unenforceable unless it substantially complies with the applicable statutory form. | Tex. Prop. Code §§53.281–53.287 |
| Utah(UT) | Optional / safe harbor: Utah Conditional Waiver and Release upon Progress Payment; Utah Waiver and Release upon Final Payment | Not addressed by the statute. | Optional safe harbor. A waiver "may be" in the statutory form; any waiver must be signed and is enforceable only once payment is received. | Utah Code §38-1a-802 |
| Wyoming(WY) | Optional / safe harbor: Lien Waiver | The statutory form includes a notarial acknowledgment block. | Unclear. The statute says the waiver "shall be completed in substantially the following form" but states no consequence for using a different form. | W.S. §29-10-101(b) |
Retainage rules by state
Statutory retainage limits on public and private projects and the release timing AP teams have to track against each subcontract.
| State | Public projects | Private projects | Release timing | Notes | Source |
|---|---|---|---|---|---|
| Alabama(AL) | 5% of work done and stored materials; none withheld after 50% completion | 10%; no further retainage after 50% completion | Public: held until final completion and acceptance. Private: within 60 days of contractor work completion or substantial completion, whichever first | § 39-2-12 covers awarding authorities (public works). § 8-29-3 excludes PSC-regulated electric utility projects; sub retainage % cannot exceed owner's. | Ala. Code § 39-2-12; Ala. Code § 8-29-3 |
| Alaska(AK) | No statutory rule found | No statutory rule found | Public: prime pays sub retainage within 8 working days after final payment from public owner (or AS 36.25.020(b) notice period, if later) | No statutory % cap found. Public owner pays interest on retainage (§ 36.90.250, read in 1993 edition only). No private retainage statute found. | Alaska Stat. § 36.90.210; Alaska Stat. § 36.90.250 |
| Arizona(AZ) | 10% until 50% complete; then max 5% of later payments (half of retention released on request if progress satisfactory) | No statutory rule found | Public: within 60 days after completion/notice of completion. Private: within 7 days after release billing approved (deemed approved 14 days after receipt) | Private: no % cap; owner may withhold 'a reasonable amount for retention'. Private section renumbered from 32-1129.01 to 32-1182 on azleg.gov. | A.R.S. § 34-221; A.R.S. § 32-1182 (formerly § 32-1129.01) |
| Arkansas(AR) | 5%; agency may stop withholding at 50% complete if work satisfactory | No statutory rule found | Public: all retainage paid within 30 days after contract completion; partial release within 30 days on phased partial occupancy | Applies where prime must post performance/payment bond. Bonded subs: 5%, none after 50% with contractor OK. None on stored materials. No private statute found. | Ark. Code Ann. § 22-9-604 |
| California(CA) | 5% of each payment and of contract price (higher only if project found 'substantially complex' before bid) | 5% for private contracts entered on/after Jan 1, 2026 (Civ. Code 8811) | Public: within 60 days of completion; prime pays subs in 7 days. Private: owner within 45 days of completion; prime pays subs in 10 days | Private 5% cap (SB 61) excludes non-mixed-use residential ≤4 stories and unbonded subs where bond required. 2%/month penalty for late release. | Cal. Pub. Cont. Code § 7201; Cal. Pub. Cont. Code § 7107; Cal. Civ. Code § 8811; Cal. Civ. Code § 8812; Cal. Civ. Code § 8814 |
| Colorado(CO) | 5% (public entity must pay at least 95% of completed work) | 5% of price of work completed | Public: final settlement within 60 days after satisfactory completion and final acceptance. Private: no statutory release deadline (contract governs) | Public rule applies to contracts over $150,000. Private cap applies to contracts >= $150,000; excludes 1-4 unit residential (§ 38-46-102). | C.R.S. § 24-91-103; C.R.S. § 38-46-103 |
| Connecticut(CT) | State agency: 7.5%, cut to 5% at 50% complete; DOT 2.5%; municipalities 5% | 5% of each progress payment | Private: within 30 days after certificate of final completion or written acceptance. State: reduction paid within 90 days of 50% application | § 49-41b applies to bonded public works. Private cap excludes public, HUD-funded, contracts of $25k or less, and residential of 4 or fewer units. | Conn. Gen. Stat. § 49-41b; Conn. Gen. Stat. § 42-158k; Conn. Gen. Stat. § 42-158i |
| Delaware(DE) | 5% | No statutory rule found | Public: agency may release 60% at completion; balance after reports, listed subs paid, and final payment authorized | State large public works contracts. DelDOT: 5% only for low-rated bidders, may drop to 2% at 50%. No private cap verified. | 29 Del. C. § 6962(d)(5) |
| District of Columbia(DC) | 10% until completion/acceptance; Mayor may reduce or waive after 50% complete | No statutory rule found | Public: held until completion/acceptance; excess may be released at substantial completion. Private: undisputed sums incl. retainage to subs in 7 days | § 2-203.01 is an old (1887/1968) statute; current DC procurement practice may differ. Private act counts retainage as undisputed amount; no private cap. | D.C. Code § 2-203.01; D.C. Code § 27A-101; D.C. Code § 27A-104 |
| Florida(FL) | 5% of each progress payment (state and local); contracts ≤ $200K exempt | No statutory rule found | Local govt: within 20 business days after punch list is created, pay balance incl. retainage less 150% of cost to complete open items | 5% cap from ch. 2023-134. Federally funded jobs with contrary rules exempt. State-agency punch-list release rule (s. 255.077) not checked. No private cap found. | Fla. Stat. § 255.078; Fla. Stat. § 218.735 |
| Georgia(GA) | 5% of each progress payment (contracts on/after July 1, 2022) | No statutory rule found | Public: within 30 days after invoice at substantial completion (200% of open items held); prime pays subs within 10 days of receipt | Public rule excludes GDOT road contracts and contracts ≤ $250K or ≤ 45 days (2025). Private: retainage limited to contract % and sub % ≤ owner's %. | O.C.G.A. § 13-10-80; O.C.G.A. § 13-11-5 |
| Hawaii(HI) | 5%; no further withholding after 50% complete if progress satisfactory | No statutory rule found | Public: on final payment, sub retainage paid within 10 days of contractor's receipt; earlier release on completion of sub work with bond/90 days | Bonded subs: same % as prime; subcontracts may negotiate up to 10%. Retainage held by procurement officer. No private statute verified. | Haw. Rev. Stat. § 103-32.1; Haw. Rev. Stat. § 103-10.5 |
| Idaho(ID) | 5% (where public body requires bond >50% of contract) | 5% of each payment and of contract price | Public: 30 days after acceptance of completed portions; subs within 30 days of subcontract completion. Private: 35 days after final completion; subs 10 days | Private 5% cap lifted if requested performance bond not given; not for owner-occupied 1-4 unit homes. Cut to ≤150% of remaining work at substantial completion. | Idaho Code § 54-1926(3); Idaho Code § 29-115 |
| Illinois(IL) | Bonded local-govt contracts: 10% until 50% complete, then reduce to 5% held | 10% until 50% complete, then reduce to 5% held | No statutory rule found | Public cap applies where Bond Act bond required (>$150K local). P.A. 104-168 (eff. 6/1/2027) restricts State-agency retainage. Release timing not verified. | 30 ILCS 550/1 (Public Construction Bond Act); 815 ILCS 603/20 (Contractor Prompt Payment Act) |
| Indiana(IN) | Owner elects: up to 6% until 50% complete then none, or up to 3% until substantial completion | No statutory rule found | Local public works: pay contractor within 61 days after substantial completion (200% of uncompleted minor items may be held) | Caps cut from 10%/5% by HEA 1033 (eff. 7/1/2025). Local rule applies to contracts >$200k, excl. roads/bridges. Private cap not verified (sources conflict). | Ind. Code § 4-13.6-7-3; Ind. Code § 36-1-12-14 |
| Iowa(IA) | 3% of each monthly payment (reduced from 5% eff. July 1, 2025) | No statutory rule found | Public: retained 30 days after completion and final acceptance, then released less 2x claims on file | Prime may retain from subs lesser of 3% or subcontract amount. Public improvements only; no private retainage statute found. | Iowa Code § 573.12; Iowa Code § 573.14 |
| Kansas(KS) | 5%; up to 10% if needed for performance or contractor behind/poor work | 5%; up to 10% if needed for performance or contractor behind/poor work | Within 30 days after substantial completion (public and private); 18%/yr interest if late | Owner may hold retainage for unfinished work until 30 days after it's done; ≤150% of incomplete work value. Public act scope exclusions not checked. | K.S.A. 16-1904; K.S.A. 16-1804 |
| Kentucky(KY) | 10% until 50% complete; after 51% complete no more than 5% of total contract amount | Same as public: 10% until 50%, then max 5% (non-residential) | Within 30 days after substantial completion (less 200% of remaining work); contractor pays subs within 15 business days | Fairness in Construction Act applies to public and private construction excluding residential; excludes KRS 278 utility facilities and RUS-funded contracts. | KRS 371.410; KRS 371.425 |
| Louisiana(LA) | 10% of contract price if under $500k; 5% if $500k or more | No statutory rule found | Public: withheld until 45 days after recordation of formal acceptance (or notice of default) | 38:2248 punch-list rules do not apply to DOTD. Private prompt-pay statute 9:2784 sets payment timing but no retainage % cap. | La. R.S. 38:2248; La. R.S. 9:2784 |
| Maine(ME) | 5% (state public improvements; may reduce at substantial completion) | No statutory rule found | Within 30 days after final acceptance of the work; contractor pays subs within 7 days after receiving retainage | § 1746: 5% mandatory on State public improvements. § 1116 sets release timing for construction contracts generally (excl. MaineDOT); no private cap. | 5 M.R.S. § 1746; 10 M.R.S. § 1116 |
| Maryland(MD) | 5% of total contract (when 100% payment and performance bonds furnished) | 5% of contract price and of each payment (when 100% bonds furnished) | Public: within 120 days after satisfactory completion. Private: undisputed retention within 90 days after substantial completion | Caps apply only if contractor furnished 100% bonds. § 13-225 covers state procurement; § 17-110 other public bodies. Private: contracts >= $100,000 only. | Md. Code, State Fin. & Proc. § 17-110; Md. Code, State Fin. & Proc. § 13-225; Md. Code, Real Prop. § 9-304 |
| Massachusetts(MA) | 5% of each approved periodic payment (public buildings) | 5% of any progress payment | Public: balance within 65 days after substantial completion. Private: apply 60 days after substantial completion; pay within 30 days (+7 days per lower tier) | Private cap applies only to prime contracts >= $3M; excludes 1-4 unit residential. § 39K covers public building contracts; other public work may differ. | M.G.L. c. 30, § 39K; M.G.L. c. 149, § 29F |
| Michigan(MI) | 10% of work in place until 50% in place; no additional retainage after unless unsatisfactory progress | No statutory rule found | Public: retainage plus interest released with the final progress payment; early release after 94% in place against a letter of credit | Public act excludes MDOT, school districts, colleges, MSHDA, and contracts < $30,000. No private retainage statute found (not exhaustively searched). | MCL 125.1563; MCL 125.1561 (definitions) |
| Minnesota(MN) | 5% of each progress payment | 5% | All retainage within 60 days after substantial completion; contractor pays subs within 10 days of receipt | No retainage for warranty work. Revisor notes § 15.72 was affected by 2026 session law; check effective changes. | Minn. Stat. § 15.72; Minn. Stat. § 337.10 |
| Mississippi(MS) | 5%; on contracts ≥$250k (and all subcontracts), 50% returned at 50% complete, then 2.5% | No statutory rule found | Public: final payment due within 45 days of substantial completion/beneficial use/certification (first to occur), else 1%/month interest | Excludes MDOT Commission road/bridge contracts. Prime can't withhold a higher % from subs. Final payment needs surety consent. No private statute found. | Miss. Code Ann. § 31-5-33; Miss. Code Ann. § 31-5-25 |
| Missouri(MO) | 5% (up to 10% if contract under $50k and no bond required); owner may reduce or eliminate | 10% of each payment due (owner to contractor); sub retainage may not exceed owner's | Public: within 30 days after acceptance (at least 98% of retainage). Private: no fixed final-release deadline verified | Private Prompt Payment Act excludes residential of 4 or fewer units; contractor may substitute security for retainage (436.306). | RSMo § 8.960 (formerly 34.057); RSMo § 436.303; RSMo § 436.336 |
| Montana(MT) | 5% | 5% | Released on final acceptance of each separately priced portion of work; prime must pay sub within 7 days of receiving owner payment | Owner's % to prime is the max prime may hold from subs. Part 21 (private cap) excludes residential projects under $400,000 total cost. | Mont. Code Ann. § 18-2-316; Mont. Code Ann. § 28-2-2110; Mont. Code Ann. § 28-2-2103; Mont. Code Ann. § 28-2-2107 |
| Nebraska(NE) | 10%; max 5% of further progress payments once 50% complete (with assurances) – political subdivisions only | 10%; max 5% of further progress payments once 50% complete (with assurances) | Owner within 45 days after substantial completion; contractor pays sub retainage within 10 days of receipt | Construction Prompt Pay Act excludes State of Nebraska contracts and state-paid federal/state-aid subdivision projects; state-agency rule not verified. | Neb. Rev. Stat. § 45-1204; Neb. Rev. Stat. § 45-1203; Neb. Rev. Stat. § 45-1202 |
| Nevada(NV) | 5% until 50% complete; then 0% if progress satisfactory (max 2.5% or 5% if agency keeps withholding) | 5% of each payment (if contract authorizes retention) | Within 30 days after occupancy/use, recorded notice of completion (public), or availability for use (private) | Public: interest on retainage paid quarterly. Private release covers 'money remaining unpaid', subject to permitted withholdings. | NRS 338.515; NRS 338.520; NRS 624.609; NRS 624.620 |
| New Hampshire(NH) | No statutory rule found | No statutory rule found | No statutory rule found | No statutory % cap found. RSA 21-I:20 only lets contractors substitute securities for retainage on state contracts >$500k. Water projects: Env-Wq 507.12 rule. | N.H. Rev. Stat. § 21-I:20 |
| New Jersey(NJ) | 2% of each partial payment (county/municipal contracts where contractor agrees to withholding) | No statutory rule found | Local public: within 45 days of final acceptance. All projects: owner pays retainage billing within 30 days; prime pays subs within 10 days of receipt | No statutory private cap found. Public % verified only for local contracting units; state agency, school board and DOT rules differ and were not verified. | N.J.S.A. 40A:11-16.3; N.J.S.A. 2A:30A-2 |
| New Mexico(NM) | 0% (retainage prohibited) | 0% (retainage prohibited) | No retainage; owner pays undisputed requests within 21 days; contractor/sub pays lower tier within 7 days of receipt | Prompt Payment Act bars withholding amounts owed for work performed. Excludes residential with ≤4 units. Text read on FindLaw (current as of 1/1/2024). | N.M. Stat. § 57-28-5; N.M. Stat. § 57-28-3 |
| New York(NY) | 5% of each progress payment; up to 10% only if owner does not require full performance and payment bonds | 5% of contract sum (private contracts ≥ $150K; many residential projects excluded) | Public: balance less 2x value of open items paid at substantial completion. Private: owner releases within 30 days after final approval of work | Private rule (GBL Art. 35-E) excludes public works and 1-3 family/small residential projects. Late private release accrues 1%/month interest. | N.Y. State Fin. Law § 139-f; N.Y. Gen. Bus. Law § 756-c; N.Y. Gen. Bus. Law § 756 |
| North Carolina(NC) | 5%; none on projects < $150K; no further retainage after 50% complete if performance satisfactory | No statutory rule found | Public: within 60 days after pay request following substantial completion or beneficial occupancy. Subs: within 7 days of receipt | Public excludes NCDOT §136-28.1 contracts; owner may restore up to 2.5% total after 50%. Private: sub retainage ≤ owner's initial % (22C-4); no owner cap. | N.C. Gen. Stat. § 143-134.1; N.C. Gen. Stat. ch. 22C |
| North Dakota(ND) | 10% until 50% complete, then no further retainage (unless unsatisfactory progress documented) | 10% until 50% complete, then no further retainage | Public: at 95% completion up to 95% of retainage may be paid; rest as architect approves; final payment after completion and acceptance | 48-01.2-13 covers public improvements; 43-07-23 covers other contracts (private) except federally governed ones. Private statute sets no release deadline. | N.D. Cent. Code § 48-01.2-13; N.D. Cent. Code § 43-07-23 |
| Ohio(OH) | 4% of labor (partial payments ≥96% of approved labor estimates); stored materials paid at 92% of invoice | No statutory rule found | Public: within 30 days of substantial completion (less amount to finish); rest within 30 days of final completion. Subs: 10 days after receipt | HB 96 (eff. 9/30/2025) replaced old 8%-until-50% rule; older contracts may differ. ODOT (Ch. 5525) excluded. No private % cap; 4113.61 sets sub pass-through. | Ohio Rev. Code § 153.12; Ohio Rev. Code § 153.13; Ohio Rev. Code § 153.14; Ohio Rev. Code § 4113.61 |
| Oklahoma(OK) | 5%; reduced to 2.5% after 50% complete with satisfactory progress. ODOT/Turnpike withhold none | No statutory rule found | Within 21 days after certificate of substantial completion (less 150% of punch list); prime pays subs within 10 days | Fair Pay for Construction Act defines construction contract as public only (§ 222). Two versions of § 113.1 exist (v1/v2) with similar 5%/2.5% rule. | 61 O.S. § 113.1; 61 O.S. § 226; 61 O.S. § 222 |
| Oregon(OR) | 5%; agency may eliminate retainage after 50% complete if progressing satisfactorily (on contractor's written application) | 5% of contract price of work completed | Public: paid with final payment; 1.5%/mo interest from 30 days after completion/acceptance. Private: 1%/mo interest from 30 days after completion | ORS 701.420 covers construction and home improvement contracts; retainage on private contracts over $500k must go in interest-bearing escrow. | ORS 279C.570(7)-(8); ORS 701.420 |
| Pennsylvania(PA) | 10% until 50% complete, then half returned and max 5%; DGS contracts 6% then 3% | No statutory rule found | Public: may be held until substantial completion. Private (CASPA): within 30 days after final acceptance; subs paid within 14 days of receipt | No private % cap in CASPA. Sub may post 120% maintenance bond to release retainage at substantial completion of its scope (2018 amendment). | 62 Pa.C.S. § 3921; 73 P.S. § 509 (CASPA § 9) |
| Rhode Island(RI) | 5% of any progress payment (contracts <$500k: up to 5% of price at substantial completion; RIDOT up to 5%) | 5% of any progress payment | Apply 60 days after substantial completion (or earlier per contract); pay within 30 days of application, +7 days per lower tier | 37-12-10.1 covers construction contracts (per § 5-65-1) and state/municipal public works. Up to 0.5% may be held 1 yr for latent defects. | R.I. Gen. Laws § 37-12-10.1; R.I. Gen. Laws § 37-12-10 |
| South Carolina(SC) | 3.5% of each progress payment (state contracts and subcontracts) | No statutory rule found | State: released 'forthwith' as each division is certified complete; prime pays sub within 10 days of receipt | Consolidated Procurement Code covers state bodies; local entities may differ. Private: § 29-6-40 allows 'a reasonable amount for retainage', no % cap. | S.C. Code § 11-35-3030(4); S.C. Code § 29-6-40 |
| South Dakota(SD) | No statutory rule found | No statutory rule found | State/local public: interest owed on retained sums from 30 days after completion until paid (county buildings: 60 days) | No % cap. County building contracts must retain AT LEAST 12% of first $50k, 5% of next $200k, 2.5% above (a minimum). No private statute found. | S.D. Codified Laws § 5-18B-11; S.D. Codified Laws § 9-42-12; S.D. Codified Laws § 7-25-10 |
| Tennessee(TN) | 5% of the contract amount | 5% of the contract amount | Owner within 90 days after completion or substantial completion (earlier); prime pays subs within 10 days of receipt | Applies to public and private. Retainage escrow required on contracts >= $500,000 (§ 66-34-104, not verified here). HUD 221(d)(4) may preempt per AG opinion. | Tenn. Code Ann. § 66-34-103 |
| Texas(TX) | 10% if contract < $5M; 5% if contract ≥ $5M (10% for dam projects regardless of value) | No statutory rule found | Public: no retainage may be withheld after completion of contract work, incl. warranty period. Private: owner holds 10% reserve until 30 days after completion | Gov't Code subch. B excludes contracts < $400K and TxDOT Ch. 223 contracts. Private: no cap; §53.101 mandates a 10% lien reserve (a floor, not a cap). | Tex. Gov't Code § 2252.032; Tex. Prop. Code § 53.101 |
| Utah(UT) | 5% of each payment; total may not exceed 5% of construction price | 5% (same statute; nonresidential commercial/industrial only) | Within 45 days of later of billing, certificate of occupancy/final acceptance, or occupancy; subs paid within 10 days of receipt | Excludes residential work. Retention must be in interest-bearing account. Version read is marked superseded 1/1/2027; check amendment. | Utah Code § 13-8-5 |
| Vermont(VT) | No statutory rule found | No statutory rule found | Within 30 days after final acceptance of the work; contractor/sub pays lower tier within 7 days of receiving retainage | Prompt Pay Act sets no % cap; applies to public and private owners. No retainage on accepted contracted materials from suppliers (§ 4005(e)). | 9 V.S.A. § 4005; 9 V.S.A. ch. 102 |
| Virginia(VA) | 5% of each progress payment | No statutory rule found | Public: withheld amounts may be included in final payment (no fixed day count in § 2.2-4333) | Private: § 11-4.6 sets prompt-pay terms but expressly does not prohibit retainage provisions; no % cap. Public scope (state vs local) not checked. | Va. Code § 2.2-4333; Va. Code § 11-4.6 |
| Washington(WA) | 5% of moneys earned (federal-transportation-funded jobs rely on bond instead) | No statutory rule found | Public: 60 days after completion of all contract work, subject to prevailing wage (ch. 39.12) and tax/lien clearances | Prime may withhold max 5% from subs on public jobs; retainage bond allowed. No statutory private cap identified (not exhaustively checked). | RCW 60.28.011 |
| West Virginia(WV) | No statutory rule found | No statutory rule found | No statutory rule found | Not verified against statute text. No general retainage statute found; secondary 50-state surveys agree. 2008 HB 4697 (10% cap) was a bill only. WVDOH rules address retainage by bond election. | W. Va. Code ch. 5, art. 22 (Government Construction Contracts) |
| Wisconsin(WI) | 5% until 50% complete, then none unless progress unsatisfactory; total never above 10% of work completed | No statutory rule found | State: paid at substantial completion less corrective/uncompleted work; prime pays subs within 7 days. Local: may be paid at substantial completion | Municipal rule applies to contracts of $1,000+ and excludes DOT. No private retainage statute found. | Wis. Stat. § 16.855(19) (state); Wis. Stat. § 66.0901(9)(b) (municipal) |
| Wyoming(WY) | 5% of calculated value of work completed | No statutory rule found | Public: paid on 41st day after first published notice of substantial completion, less amounts for incomplete/nonconforming work | Public works only; retainage held in account in contractor's name; interest-bearing deposit on request for contracts >$50k (§ 16-6-704). No private cap found. | Wyo. Stat. § 16-6-702; Wyo. Stat. § 16-6-116 |
Methodology
- Each row summarizes the state statute that governs construction lien waivers or retainage, and cites that statute with a link to the official source where one is available.
- Summaries describe the general rule. Exceptions for specific project types, owners, or contract terms are noted where they materially change the rule, but not every exception is listed.
- A dash (—) means the dataset does not record a statutory rule for that field; it does not mean no rule applies.
- Rows carry the date they were last reviewed. The page date reflects the most recent review across both tables.
- The CSV downloads contain the same rows as the tables above. Reuse is welcome with attribution to Aequo Build and a link to this page.
Sources and related guides
Primary sources are the state statutes cited in each row. For how AP teams put these rules into practice, see:
Lien waivers guide Retainage guide Retainage calculator Lien-waiver risk assessment Construction AP Benchmark Centre
Aequo Build tracks waivers per vendor and job, holds payment until required waivers are on file, and tracks retainage to release, alongside QuickBooks Online.