Montana Retainage Requirements
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5% Retainage Limit
Retainage cannot exceed 5%.
Pay Period
Retainage must be released upon completion and final acceptance of each divisible portion of the work for which the contract provides a separate price.
There is a Process to Recover
Solely set forth by contract.
Not Held In Escrow
In Montana, contractors and owners do not need to hold retainage funds in a separate escrow account.
5 Percent
Retainage cannot exceed 5%.
30 Day Pay Period
Final payment of the contract price must be made within 30 days after final acceptance.
There is a Process to Recover
Yes, contractor must request final acceptance prior to release of retianage.
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 Montana’s retainage requirements. The Montana retainage statutes are reproduced below on this page.
