11 months ago

What is the amount of retainage a general contractor can withhold for progress billings from a vendor in Houston, TX 77040 for commercial projects?

Senior Legal Associate Levelset
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Generally, retainage between a contractor and their vendor will be established in the contract between those parties. And, if the contract doesn’t specify that retainage will be withheld, then withholding retention might not be proper in the first place.

Regardless, in Texas, retainage is often withheld at around 10% on lienable construction projects since that’s what’s typically withheld between the owner and the contractor. Note, though, that unlike some other states, there isn’t a maximum retainage amount created by Texas statute for commercial construction projects.

For more background on Texas retainage requirements: Texas Retainage Overview.

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
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