Are we allowed to withhold retainage on a single family home here in Idaho?
1 reply
Oct 11, 2019
Yes, retainage may be withheld on private construction projects. According to the Idaho law, retainage may be withheld, but the amount withheld cannot exceed 5% of the contract price.
Furthermore, not only can retainage be withheld on private projects, the statute continues by stating that the 5% maximum will not apply to private contracts for the improvement of "residential real property consisting of 1-4 units occupied or to be occupied by the owner." Therefore, if the owner of the property is residing or intends to reside in the property being improved, the 5% statutory limit of retainage doesn't apply.
For more information: Idaho Retainage Guide & FAQs