How much retainage can be withheld on a construction project in Colorado?
Last reviewed July 5, 2026
In Colorado, retainage is typically capped at 5% of the contract amount until 50% of the work is completed. After that, retainage can be reduced to 2% on remaining payments. Check the specific contract terms for any variations.
Key points
- Standard retainage is 5% until halfway through the project.
- After 50% completion, it drops to 2%.
- Always refer to the specific contract for details.
Retainage rules can vary based on the contract and the specific project, so it's essential to review the terms laid out in your agreement. Also, remember to check for any additional state-specific regulations that might apply to your situation.
How Alloovium helps
Alloovium can help you track retainage and ensure compliance with Colorado's payment laws.
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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.