What is the retainage cap in Arizona?

On public work the planning cap is 10%. On private work it is 10%. Bid documents and the subcontract still control if they are stricter.

When is retainage released in Arizona?

Public jobs typically release 60 days after completion. Private jobs: Per contract / prompt-pay. Confirm the contract date — several states changed caps in 2025–2026.

How fast must a prime pay a sub in Arizona?

7 days after the prime receives funds. Owner or agency to prime is 7 days after certification of the pay request (private). Late-pay interest: 1% monthly on public late pay.

Arizona · AZ

Arizona retainage law and prompt-payment rules

Arizona is one of the few states with a private retainage cap. Start in the code: A.R.S. § 32-1129.01; § 34-221.

Use this page when you are bidding or billing a job in Arizona. Public retainage is listed as 10%; private as 10%. Typical public release is 60 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.

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.

Arizona — private work

Retainage cap10%

Typical retainage releasePer contract / prompt-pay

Interest / penalty1% monthly on public late pay

Owner / agency to prime7 days after certification of the pay request (private)

Prime to sub (after prime paid)7 days after the prime receives funds

Start in the codeA.R.S. § 32-1129.01; § 34-221

Arizona is one of the few states with a private retainage cap.

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 Arizona?: On public work the planning cap is 10%. On private work it is 10%. Bid documents and the subcontract still control if they are stricter.
When is retainage released in Arizona?: Public jobs typically release 60 days after completion. Private jobs: Per contract / prompt-pay. Confirm the contract date — several states changed caps in 2025–2026.
How fast must a prime pay a sub in Arizona?: 7 days after the prime receives funds. Owner or agency to prime is 7 days after certification of the pay request (private). Late-pay interest: 1% monthly on public late pay.

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