Retainage & Withholding Risk Checker in Florida Construction Contracts
Retainage is money withheld from every progress payment (typically 5–10%) until final completion. Excessive or slow-released retainage strangles subcontractor cash flow — many states now cap retainage by statute.
Public: 5%. Private: no statutory cap, but 5–10% market standard.
Florida Statute §255.078 — 5% retainage cap on public projects; private negotiable
Typical exposure per project when a Retainage clause slips into a signed contract.
Florida caps public-project retainage at 5%. Private contracts can go higher but 10% is a red flag.
On Florida public jobs, retainage above 5% is capped by statute. On private, negotiate for 5% + early reduction.
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The clause we flag — and the one we help you write instead.
“Contractor may withhold ten percent (10%) of each progress payment as retainage, to be released in full only upon Contractor's receipt of final payment and closeout of all subcontracts on the Project.”
“Contractor shall withhold five percent (5%) of each progress payment as retainage. Retainage shall be reduced to two and one-half percent (2.5%) upon fifty percent (50%) completion. Subcontractor's retainage shall be released within thirty (30) days of Subcontractor's substantial completion of its scope, independent of other subcontracts on the Project.”
- 1Push for early retainage reduction at 50% completion.
- 2Separate your retainage release from other subs — don't be held hostage to a slow-poke.
- 3Verify state statutory retainage caps — public projects often have stricter limits.
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