Arizona retainage

Who and what this applies to

Public contracts governed by A.R.S. §34-221(C); these rules are not stated as private-project caps.

The rules

• The public progress-payment provision permits retention of 10%. At 50% completion, the contractor may request release of half the accumulated retention; release depends on satisfactory progress and the absence of a specific cause or claim requiring greater retention. Source
• After that reduction, subsequent retention is limited to 5% while progress remains satisfactory. Unsatisfactory progress permits the statutory restoration of 10% retention. Source
• Retained amounts are due within 60 days after completion and filing of the notice of completion. A longer period requires the specific written finding under §34-221(C)(5), and withholding is limited to the amount necessary for the identified purpose. Source

Primary sources

• A.R.S. §34-221(C)(2)–(5)

Sources reviewed 2026-09-30. This guide covers the projects and rules stated above.

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