Nevada Retainage Requirements
- Private Jobs
- Public Jobs
- Top Links
5% Retainage Limit
Retainage cannot exceed 5% of each progress payment.
When the improvement is occupied by the owner, or available for use for its intended purpose, retainage must be released within 30 days.
There's No Process to Recover
Not Held In Escrow
In Nevada, contractors and owners do not need to hold retainage funds in a separate escrow account.
Public entity must retain 5% prior to 50% completion. After 50% completion the entity will either no longer withhold retainage or it will be reduced to 2.5%.
Once 50% completion has been reached, and if the performance is satisfactory, the public entity may pay any retainage amount previously withheld. If not, retainage will be released within 30 days of completion of the improvement.
There is a Process to Recover
Yes, written request can be made to public entity regarding retainage payments.
Retainage, also called “retention,” is an amount of money “held back” from a contractor or subcontractor during the course of a construction project. In general, retainage serves two main purposes:
- To provide an incentive to the contractor or subcontractor to complete the project; &
- 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 Nevada’s retainage requirements. The Nevada retainage statutes are reproduced below on this page.
Nevada retainage limits and deadlines
Retainage on private projects in Nevada is capped at 5% from each progress payment on the project. Any withheld retainage funds must be released by the property owner within 30 days of completion of the project. Once received by a contractor, they must release retainage payments to their subs and suppliers within 10 days.
On Nevada public works projects, the amount of retainage to be withheld is also 5% of each progress payment. Upon 50% completion, if the public entity determines that the project is achieving satisfactory progress, they can choose to stop withholding retainage from the remaining progress payments and release any amount of retainage withheld. If the project isn’t progressing satisfactorily, the amount of retainage withheld on remaining payments will be reduced to 2.5% and half of the retainage withheld at that point will be released. When the project reaches completion, any remaining retainage withheld must be released within 30 days, and passed down to any subs and suppliers within 10 days of receipt.