What is the retainage cap in Oregon?

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 Oregon?

Public jobs typically release 30 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 Oregon?

7 days after the prime is paid. Owner or agency to prime is Public: 30 days after invoice. Late-pay interest: 1.5% monthly on some public.

Oregon · OR

Oregon retainage law and prompt-payment rules

Public release is relatively fast. Start in the code: ORS 279C.570; 701.625.

Use this page when you are bidding or billing a job in Oregon. Public retainage is listed as 5%; private as No statutory cap. Typical public release is 30 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.

Oregon retainage law (ORS 279C.570 and 701.625)

Oregon public improvement contracts cap retainage at 5% of a progress payment under ORS 279C.570. After 50% complete, the agency may reduce or drop further retainage if work is satisfactory and the surety agrees in writing. Public release is relatively fast — about 30 days after acceptance — which is why “oregon retainage law” is a cash-flow search, not a trivia search.

Private / commercial progress pay lives in ORS 701.625: the owner may withhold a reasonable retainage (defined in ORS 701.410) plus documented correction costs. There is no neat 5% private cap like California. HB 4006 (2024) also let contractors on public and large commercial jobs post a retainage surety bond instead of sitting on cash withhold — check whether your contract date is before or after 7 March 2024.

Some public late pay can reach 1.5% per month. Prime-to-sub is often 7 days after the prime is paid. If the job is public Oregon, start the calculator at 5%; if it is private, use the subcontract rate and do not assume the public cap.

Statute text: ORS 279C.570. Confirm the current code before you rely on a date.

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.

Oregon — private work

Retainage capNo statutory cap

Typical retainage releasePer contract

Interest / penalty1.5% monthly on some public

Owner / agency to primePublic: 30 days after invoice

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

Start in the codeORS 279C.570; 701.625

Public release is relatively fast.

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 Oregon?: 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 Oregon?: Public jobs typically release 30 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 Oregon?: 7 days after the prime is paid. Owner or agency to prime is Public: 30 days after invoice. Late-pay interest: 1.5% monthly on some public.

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