How much retainage can be withheld on a construction project in Illinois?
Last reviewed July 5, 2026
In Illinois, the standard retainage limit is usually 10% of the contract amount until 50% of the work is complete. After that, it can drop to 5%. Check the Illinois Public Construction Bond Act for details on public projects.
Key points
- Standard retainage limit is 10% until halfway through the project.
- Retainage can drop to 5% after 50% completion.
- Private contracts may vary; refer to the specific agreement.
- Public projects follow the Illinois Public Construction Bond Act.
Retainage helps protect the owner from incomplete work or defects by holding back a portion of payment until the project is finished. Terms can differ based on the contract type, especially between public and private projects.
How Alloovium helps
Alloovium helps track retainage terms and compliance with state laws.
See how it worksRelated questions
- Can a subcontractor file a lien without a written contract in Illinois?
- Do I need to send a preliminary notice before filing a lien in Illinois?
- How long does a mechanics lien last in Illinois?
- What are the prompt payment rules for construction in Illinois?
- What is the deadline to file a mechanics lien in Illinois?
- What is the difference between a conditional and unconditional lien waiver in Illinois?
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.