Utah Retainage Requirements
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5% Retainage Limit
Retainage cannot exceed 5% total of the construction project price
45 Day Pay Period
Any retention proceeds retained or withheld from a contractor and any accrued interest shall be released pursuant to a billing statement from the contractor within 45 days from: the date the owner receives the billing statement from the contractor, the final acceptance notice being issued to the original contractor, owner, or architect, or the date the contractor accepts the final pay quantities (whichever is later). Contractors and subcontractors must release retainage to their subcontractors within 10 days of when retainage is released to them.
There's No Process to Recover
None, other than ordinary billing requirements.
Not Held In Escrow
In Utah, contractors and owners do not need to hold retainage funds in a separate escrow account.
5 Percent
Retainage cannot exceed 5%. Retainage held by parties other than the public entity cannot exceed the amount retained by the public entity.
45 Day Pay Period
Retainage must be released within 45 days from the later of: (1) the date the public agency receives the billing statement from the contractor; or (2) the date that a certificate of occupancy or final acceptance notice is issued..
There is a Process to Recover
Yes, the contractor must issue to the public agency a billing statement, or a certificate of occupancy or final acceptance notice must be issued to the original contractor, architect, or public agency.
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 Utah’s retainage requirements. The Utah retainage statutes are reproduced below on this page.
