Maine Retainage Requirements
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No Retainage Limits
Not Regulated by State Law
30 Day Pay Period
Owners must release retainage within 30 days after final acceptance of the work. Contractors must release retainage withheld from subcontractors within 7 days of owner releasing retainage to contractor.
There is a Process to Recover
Final request for payment upon completion of work unless otherwise agreed in contract.
Not Held In Escrow
In Maine, contractors and owners do not need to hold retainage funds in a separate escrow account.
Public entity must withhold 5% of the amount due to the contractor, but this percentage may be reduced upon substantial completion of the work.
The State will release funds when project under the contract has been accepted by or for the State.
There's No Process to Recover
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 Maine’s retainage requirements. The Maine retainage statutes are reproduced below on this page.