How much retainage can be withheld on a construction project in California?
Last reviewed July 5, 2026
In California, the maximum retainage that can be withheld is 5% of the contract price. The owner or GC must release the retainage within 60 days after the project is fully complete.
Key points
- Max retainage is 5% in California.
- Release of retainage is due within 60 days after project completion.
- California Civil Code Section 8800 covers retainage.
Retainage helps ensure project completion and quality. You need to track retainage amounts and timelines for release. Rules around retainage can vary based on your contract and project type.
How Alloovium helps
Alloovium helps you track retainage and compliance deadlines to avoid payment issues.
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General information for US construction professionals — not legal advice. Lien deadlines, retainage caps and notice rules vary by state; verify with the state statute or a construction attorney.