Retainage & Withholding Risk Checker in Texas 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.
10% retainage statutorily authorized; must be released 30 days post-completion.
Texas Property Code Chapter 53 — 10% statutory retainage on private construction
Typical exposure per project when a Retainage clause slips into a signed contract.
Texas allows up to 10% retainage but requires timely release. Late release triggers interest under §53.
Track Texas' 30-day release trigger — any delay beyond that starts an interest clock in your favor.
Drop your contract PDF — we'll flag Retainage risk in seconds.
Vowpace's AI extracts retainage & withholding language, redlines it against safer alternatives, and generates an audit-grade evidence report — free for your first scan.
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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.
Scan your Texas contract for Retainage traps — free.
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