What is the retainage cap in Alabama?

On public work the planning cap is 5%. On private work it is No statutory cap. Bid documents and the subcontract still control if they are stricter.

When is retainage released in Alabama?

Public jobs typically release 45 days after completion. Private jobs: Per contract. Confirm the contract date — several states changed caps in 2025–2026.

How fast must a prime pay a sub in Alabama?

7 days after the prime is paid (public). Owner or agency to prime is Public: typically 30 days after proper invoice. Late-pay interest: Per contract.

Alabama · AL

Alabama retainage law and prompt-payment rules

Private retainage is whatever the subcontract says. Start in the code: Ala. Code § 39-2-12; prompt pay § 8-29-1 et seq..

Use this page when you are bidding or billing a job in Alabama. Public retainage is listed as 5%; private as No statutory cap. Typical public release is 45 days after completion.

Then open the retainage calculator for the dollars, or the G702-style pay application if you need line-by-line previous certificates.

Alabama public retainage and private contract holdback

Alabama public construction retainage is planned at 5% under Ala. Code § 39-2-12, with release often about 45 days after completion. Prompt pay for private work is a different article (Ala. Code § 8-29-1 et seq.). Mixing those two is how subs over-model cash on a private job that still holds 10%.

Private retainage is whatever the subcontract says. There is no Alabama private cap equivalent to Massachusetts § 29F. Prime-to-sub on public work is typically 7 days after the prime is paid.

If the job is Alabama public, start the retainage calculator at 5%. If it is private, use the subcontract rate and treat the G702-style Line 5 as cumulative — Alabama GCs still catch a pay app that restarts retainage each month.

Statute text: Ala. Code § 39-2-12. Confirm the current code before you rely on a date.

Where is the job?

State and project type drive retainage caps and payment clocks

State

Project type

Caps and clocks change with project type, contract value, and the year you signed. Planning table only — confirm the current statute before you rely on a date.

Alabama — private work

Retainage capNo statutory cap

Typical retainage releasePer contract

Interest / penaltyPer contract

Owner / agency to primePublic: typically 30 days after proper invoice

Prime to sub (after prime paid)7 days after the prime is paid (public)

Start in the codeAla. Code § 39-2-12; prompt pay § 8-29-1 et seq.

Private retainage is whatever the subcontract says.

Summaries compiled for planning. This site is not a law firm.

Run the retainage dollars

Questions this page answers

What is the retainage cap in Alabama?: On public work the planning cap is 5%. On private work it is No statutory cap. Bid documents and the subcontract still control if they are stricter.
When is retainage released in Alabama?: Public jobs typically release 45 days after completion. Private jobs: Per contract. Confirm the contract date — several states changed caps in 2025–2026.
How fast must a prime pay a sub in Alabama?: 7 days after the prime is paid (public). Owner or agency to prime is Public: typically 30 days after proper invoice. Late-pay interest: Per contract.

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