How much retainage can be withheld on a construction project in Pennsylvania?
Last reviewed July 5, 2026
In Pennsylvania, the maximum retainage that can be withheld is 10% of the payment due. After reaching 50% completion of the project, retainage can be lowered to 5%.
Key points
- Maximum retainage is 10%.
- Retainage can drop to 5% after 50% completion.
- Check contract terms for specific retainage percentages.
Review the specific contract terms, as they may set different retainage amounts. Confirm these details with the project owner to avoid disputes. Local regulations might also affect these limits, so be aware of any variations.
How Alloovium helps
Alloovium helps track retainage and compliance with state regulations, keeping you informed on your project's payment obligations.
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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.