What is the retainage cap in New Jersey?

On public work the planning cap is 2% typical after 2020 amendments (confirm bid); historically 10%. On private work it is No statutory cap (10% market). Bid documents and the subcontract still control if they are stricter.

When is retainage released in New Jersey?

Public jobs typically release 60 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 New Jersey?

10 days after the prime is paid. Owner or agency to prime is Public: 30 days after invoice. Late-pay interest: Per contract.

New Jersey · NJ

New Jersey retainage law and prompt-payment rules

New Jersey public retainage rules have been tightened — read the specification, not last year’s habit. Start in the code: N.J.S.A. 2A:30A-2; 2A:44-143.

Use this page when you are bidding or billing a job in New Jersey. Public retainage is listed as 2% typical after 2020 amendments (confirm bid); historically 10%; private as No statutory cap (10% market). Typical public release is 60 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.

New Jersey — private work

Retainage capNo statutory cap (10% market)

Typical retainage releasePer contract

Interest / penaltyPer contract

Owner / agency to primePublic: 30 days after invoice

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

Start in the codeN.J.S.A. 2A:30A-2; 2A:44-143

New Jersey public retainage rules have been tightened — read the specification, not last year’s habit.

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 New Jersey?: On public work the planning cap is 2% typical after 2020 amendments (confirm bid); historically 10%. On private work it is No statutory cap (10% market). Bid documents and the subcontract still control if they are stricter.
When is retainage released in New Jersey?: Public jobs typically release 60 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 New Jersey?: 10 days after the prime is paid. Owner or agency to prime is Public: 30 days after invoice. Late-pay interest: Per contract.

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