What is the retainage cap in New York?

On public work the planning cap is 5%. On private work it is 5% on contracts over $150,000. Bid documents and the subcontract still control if they are stricter.

When is retainage released in New York?

Public jobs typically release at substantial completion. Private jobs: At substantial completion. Confirm the contract date — several states changed caps in 2025–2026.

How fast must a prime pay a sub in New York?

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

New York · NY

New York retainage law and prompt-payment rules

Demand retainage when the owner occupies — do not wait for punch-list theater. Start in the code: N.Y. Gen. Bus. Law § 756-a; State Fin. Law § 139-f.

Use this page when you are bidding or billing a job in New York. Public retainage is listed as 5%; private as 5% on contracts over $150,000. Typical public release is at substantial 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.

New York — private work

Retainage cap5% on contracts over $150,000

Typical retainage releaseAt substantial completion

Interest / penalty1% monthly on public late pay

Owner / agency to primePublic: 30 days after invoice

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

Start in the codeN.Y. Gen. Bus. Law § 756-a; State Fin. Law § 139-f

Demand retainage when the owner occupies — do not wait for punch-list theater.

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 York?: On public work the planning cap is 5%. On private work it is 5% on contracts over $150,000. Bid documents and the subcontract still control if they are stricter.
When is retainage released in New York?: Public jobs typically release at substantial completion. Private jobs: At substantial completion. Confirm the contract date — several states changed caps in 2025–2026.
How fast must a prime pay a sub in New York?: 7 days after the prime is paid. Owner or agency to prime is Public: 30 days after invoice. Late-pay interest: 1% monthly on public late pay.

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