What is the retainage cap in Indiana?

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 Indiana?

Public jobs typically release 60 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 Indiana?

10 days after the prime is paid. Owner or agency to prime is Public: 35 days after invoice. Late-pay interest: Per contract.

Indiana · IN

Indiana retainage law and prompt-payment rules

Public cap is 5%; private is contract-only. Start in the code: Ind. Code § 5-16-5.5; § 32-28-3.

Use this page when you are bidding or billing a job in Indiana. Public retainage is listed as 5%; private as No statutory cap. 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.

Indiana — private work

Retainage capNo statutory cap

Typical retainage releasePer contract

Interest / penaltyPer contract

Owner / agency to primePublic: 35 days after invoice

Prime to sub (after prime paid)10 days after the prime is paid

Start in the codeInd. Code § 5-16-5.5; § 32-28-3

Public cap is 5%; private is contract-only.

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 Indiana?: 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 Indiana?: Public jobs typically release 60 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 Indiana?: 10 days after the prime is paid. Owner or agency to prime is Public: 35 days after invoice. Late-pay interest: Per contract.

All states · Florida retainage law · Texas retainage law · California retainage law · New York retainage law · How to bill retainage