Kansas Retainage Requirements
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10% Retainage Limit
Retainage must not exceed 10%
30 Day Pay Period
An owner must release retainage on any undisputed payment within 30 days after substantial completion of the project. Original contractors must release subcontractors' retainage within 7 days of receiving retainage from the owner.
There is a Process to Recover
Written notice and suspension of performance until payment is allowed.
Held In Escrow
In Kansas, contractors and owners need to hold retainage funds in a separate escrow account.
5 Percent
Retainage is generally limited to 5% or less, unless the owner or contractor determines a higher rate (maximum 10%) is required to ensure performance.
30 Day Pay Period
Retainage must be released within 30 days after substantial completion, except for the portion attributable to punch list work. Once work is completed, all retainage funds must be released within 45 days of completion.
There's No Process to Recover
Not Specified
Retainage serves two general purposes: (1) To provide an incentive to the contractor or subcontractor to complete the project; and (2) To give the owner some protection against problems like liens, contractual defaults, delays, and more. In most states, laws exist to regulate how the parties use the retainage concept, mostly protecting some parties against abuse of the tool from others. The following are resources, legal information, and frequently asked questions about Kansas’ retainage requirements. The Kansas retainage statutes are reproduced below on this page.
