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Florida
Cash Flow Drain

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.

Legal Risk · Florida

Public: 5%. Private: no statutory cap, but 5–10% market standard.

Florida Statute §255.078 — 5% retainage cap on public projects; private negotiable

Potential Dollar Impact
5% – 15% of Contract Sum

Typical exposure per project when a Retainage clause slips into a signed contract.

If you're the General Contractor

Florida caps public-project retainage at 5%. Private contracts can go higher but 10% is a red flag.

If you're the Subcontractor

On Florida public jobs, retainage above 5% is capped by statute. On private, negotiate for 5% + early reduction.

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Sample Redline · Florida

The clause we flag — and the one we help you write instead.

Risky boilerplate
Common Retainage clause
“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.”
Vowpace-recommended
Safer Florida-friendly rewrite
“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.”
Three things to watch during negotiation
  • 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.
More Florida clause guides
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Vowpace AI is a pre-signature contract clause-risk review tool. It does not provide legal advice, legal analysis, or binding legal services. Users are solely responsible for verifying and confirming AI-flagged clauses.

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