Massachusetts Retainage Guide and FAQs

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Massachusetts Retainage FAQs

Massachusetts Retainage Overview

Massachusetts Retainage Requirements


  • Private Jobs
  • Public Jobs
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Retainage Unregulated Icon
Retainage Limit

Not Regulated by State Law


Payment Period Not Regulated Icon
Pay Period

Not Regulated by State Law


NO
PROCESS
There's No Process to Recover

N/A


No Escrow Icon
Not Held In Escrow

In Massachusetts, contractors and owners do not need to hold retainage funds in a separate escrow account.

Retainage 5% Icon
5 Percent

Retainage cannot exceed 5%. The public entity may hold 1% retainage after substantial completion pending final completion of entire work.


65
DAYS
65 Day Pay Period

Release (minus the estimated cost to complete or correct unfinished/ unsatisfactory work) is required within 65 days of substantial completion.


YES
PROCESS
There is a Process to Recover

Yes, a certificate from the architect that work is complete is required.

Massachusetts state law does not provide a specific retainage statute.

Massachusetts Retainage Frequently Asked Questions

Massachusetts Retainage Private Projects FAQs

Does Massachusetts limit the amount of retainage can be withheld from a contractor?

Massachusetts does not provide retainage rules for private projects in its statute.

How long can a party withhold retainage in Massachusetts?

Massachusetts does not provide retainage rules for private projects in its statute.

Does Massachusetts require retained funds be deposited in a special account? Can securities be substituted for retainage?

Massachusetts does not provide retainage rules for private projects in its statute.

How can I make a claim to recover retainage in Massachusetts?

Massachusetts does not provide retainage rules for private projects in its statute.

Is there a specific notice required to recover retainage in Massachusetts?

Massachusetts does not provide retainage rules for private projects in its statute.

Massachusetts Retainage Public Projects FAQs

Does Massachusetts limit the amount of retainage that can be withheld from a contractor?

Retainage may not exceed 5%. The public entity may hold 1% retainage after substantial completion pending final completion of entire work.

How long can a party withhold retainage in Massachusetts?

Release (less estimated cost to complete or correct unfinished or unsatisfactory work) is required within 65 days from substantial completion.

Does Massachusetts require retained funds be deposited in a special account? Can securities be substituted for retainage?

Statute does not specify.

How can I make a claim to recover retainage in Massachusetts?

Statute does not specify.

Is there a specific notice required to recover retainage in Massachusetts?

A certificate of the architect that the contractor has fully or substantially completed the work is needed.

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Massachusetts Retainage Statute FAQs

Massachusetts state law does not provide a specific retainage statute.

Retainage Statute on Private Projects

None

None

Retainage Statute on Public Projects

None

None

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