How much retainage can be withheld on a construction project in North Carolina?
Last reviewed July 5, 2026
In North Carolina, retainage is capped at 5% for private projects. For public projects, the cap is 10% until substantial completion, then it can drop to 5%.
Key points
- Private projects: 5% retainage cap
- Public projects: up to 10% until substantial completion
- Retainage can drop to 5% after substantial completion
- Check contract terms for details.
Retainage helps make sure that work is completed properly. In North Carolina, the rules differ for private and public projects, so always look at the specific contract and state law for the exact terms. Be aware of any agreements with the owner or GC that might change these percentages.
How Alloovium helps
Alloovium tracks retainage and compliance deadlines, so you stay updated on payment terms.
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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.