What is the retainage cap in Illinois?

On public work the planning cap is 10%, then 5% after 50% complete. On private work it is 10%. Bid documents and the subcontract still control if they are stricter.

When is retainage released in Illinois?

Public jobs typically release 90 days after acceptance. Private jobs: Per contract. Confirm the contract date — several states changed caps in 2025–2026.

How fast must a prime pay a sub in Illinois?

15 days after the prime is paid (public). Owner or agency to prime is Public: 25–30 days after invoice. Late-pay interest: 1% monthly on public late pay.

Illinois · IL

Illinois retainage law and prompt-payment rules

Step-down after 50% complete is the cash-flow lever on public jobs. Start in the code: 30 ILCS 540; 770 ILCS 60/21.02.

Use this page when you are bidding or billing a job in Illinois. Public retainage is listed as 10%, then 5% after 50% complete; private as 10%. Typical public release is 90 days after acceptance.

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.

Illinois — private work

Retainage cap10%

Typical retainage releasePer contract

Interest / penalty1% monthly on public late pay

Owner / agency to primePublic: 25–30 days after invoice

Prime to sub (after prime paid)15 days after the prime is paid (public)

Start in the code30 ILCS 540; 770 ILCS 60/21.02

Step-down after 50% complete is the cash-flow lever on public jobs.

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 Illinois?: On public work the planning cap is 10%, then 5% after 50% complete. On private work it is 10%. Bid documents and the subcontract still control if they are stricter.
When is retainage released in Illinois?: Public jobs typically release 90 days after acceptance. Private jobs: Per contract. Confirm the contract date — several states changed caps in 2025–2026.
How fast must a prime pay a sub in Illinois?: 15 days after the prime is paid (public). Owner or agency to prime is Public: 25–30 days after invoice. Late-pay interest: 1% monthly on public late pay.

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