What is the retainage cap in Texas?

On public work the planning cap is 5% typical public; 10% statutory retainage fund on private. On private work it is 10% statutory retainage (Property Code Ch. 53). Bid documents and the subcontract still control if they are stricter.

How fast must a prime pay a sub in Texas?

7 days after the prime is paid. Owner or agency to prime is 35 days after invoice (private, Prop. Code § 28.002). Late-pay interest: 1.5% monthly automatic on late progress pay (Ch. 28).

Texas · TX

Texas retainage law and prompt-payment rules

Texas private retainage is a 10% statutory scheme, not optional courtesy. Interest is automatic. Start in the code: Tex. Prop. Code ch. 28 & 53; Gov’t Code ch. 2251.

Use this page when you are bidding or billing a job in Texas. Public retainage is listed as 5% typical public; 10% statutory retainage fund on private; private as 10% statutory retainage (Property Code Ch. 53). 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.

Texas statutory retainage (Property Code Chapter 53)

Texas private retainage is not a courtesy holdback. Chapter 53 of the Property Code is a 10% statutory retainage scheme tied to lien rights. Owners who fail to withhold can face liability they did not model. Subs who fail to send the right notices can lose the fund that was supposed to protect them.

Prompt pay on private work lives in Chapter 28: unpaid progress payments can draw 1.5% per month automatically. Owner-to-prime is often 35 days after invoice; prime-to-sub is 7 days after the prime is paid. Public work is usually a 5% cap under Government Code Chapter 2251 — do not mix the two.

Open the retainage calculator with 10% if the job is private Texas statutory retainage, then confirm the contract’s notice dates before you treat the holdback as ordinary closeout cash.

Statute text: Tex. Prop. Code ch. 53. 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.

Texas — private work

Retainage cap10% statutory retainage (Property Code Ch. 53)

Typical retainage release30 days after completion / statutory retainage period

Interest / penalty1.5% monthly automatic on late progress pay (Ch. 28)

Owner / agency to prime35 days after invoice (private, Prop. Code § 28.002)

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

Start in the codeTex. Prop. Code ch. 28 & 53; Gov’t Code ch. 2251

Texas private retainage is a 10% statutory scheme, not optional courtesy. Interest is automatic.

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 Texas?: On public work the planning cap is 5% typical public; 10% statutory retainage fund on private. On private work it is 10% statutory retainage (Property Code Ch. 53). Bid documents and the subcontract still control if they are stricter.
When is retainage released in Texas?: Public jobs typically release 30 days after acceptance. Private jobs: 30 days after completion / statutory retainage period. Confirm the contract date — several states changed caps in 2025–2026.
How fast must a prime pay a sub in Texas?: 7 days after the prime is paid. Owner or agency to prime is 35 days after invoice (private, Prop. Code § 28.002). Late-pay interest: 1.5% monthly automatic on late progress pay (Ch. 28).

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