How much retainage can be withheld on a construction project in Texas?
Last reviewed July 5, 2026
In Texas, the maximum retainage that can be withheld is 10% of the contract amount until 50% of the work is completed. After that, the retainage can drop to 5%.
Key points
- Max retainage is 10% until 50% work done.
- After that, it can drop to 5%.
- Texas Property Code covers retainage rules.
Retainage helps make sure that subs and suppliers finish their work. Knowing the limits helps with cash flow and keeps you in line with Texas laws. Check your specific contract terms, as they may vary.
How Alloovium helps
Alloovium tracks retainage amounts and compliance with state regulations.
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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.