Kentucky Retainage Requirements
- Private Jobs
- Public Jobs
- Top Links
10% Retainage Limit
Retainage must not exceed 10%
30 Day Pay Period
Within 30 days after substantial completion of a project, retainage funds shall be released less an amount equal to 200% of the estimated cost of work remaining. Retainage funds must be released within 30 days after substantial completion of the project. If any work remains upon substantial completion, up to 200% of the amount of the remaining work may continue to be withheld as retainage.
There's No Process to Recover
Not specified
Not Held In Escrow
In Kentucky, contractors and owners do not need to hold retainage funds in a separate escrow account.
10 Percent
Retainage cannot exceed 10%.
30 Day Pay Period
"
Retainage must be released within 30 days after substantial completion, but 200% of the estimated cost of any incomplete work may still be withheld."
There is a Process to Recover
Yes, retainage release is predicated on timely, proper, and undisputed request for payment.
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 Kentucky’s retainage requirements. The Kentucky retainage statutes are reproduced below on this page.