Ohio Retainage Requirements
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For projects (other than residential projects of 1 to 3 detached dwelling houses), retainage is solely based on the contract between the parties.
determined by contract
There is a Process to Recover
Solely set forth by contract.
Not Held In Escrow
In Ohio, contractors and owners do not need to hold retainage funds in a separate escrow account.
Retainage cannot exceed 8%. After 50% completion of the project, no additional retainage is allowed.
When the major portion of the project is substantially completed and occupied, or in use, or otherwise accepted, and there exists no reason to withhold retainage, the retainage must be released to the contractor.
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 Ohio’s retainage requirements. The Ohio retainage statutes are reproduced below on this page.