How much retainage can be withheld on a construction project in New York?
Last reviewed July 5, 2026
In New York, retainage on construction projects is typically capped at 5% of the contract amount. This applies to both private and public projects, but check the specific contract terms for any variations.
Key points
- Retainage capped at 5% in New York.
- Applies to both private and public projects.
- Contract terms may vary; always check the contract.
New York law allows for a standard retainage of up to 5% on construction projects. This means that during the project's progress, the owner can hold back this percentage to ensure quality and timely completion. It's essential to review your contract, as some terms may specify different amounts or conditions for retainage release.
How Alloovium helps
Alloovium helps track retainage terms and compliance throughout the project.
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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.