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Can a customer hold back retainage if not previously specified in the contract?

TexasRetainage

I am the prime contractor on a residential addition. We finished the project and the customer submitted payment, but held back 10% on the project total. Retainage was not specified or mentioned in our contract. Thank you in advance!

1 reply

May 19, 2023

If you are in Texas, you are legally required to withhold "reserved funds" for 30 days upon final completion. 

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