Arkansas retainage

Who and what this applies to

Limited to the construction category and statutory provision described below.

The rules

• For a public-agency construction contract requiring a performance and payment bond, Arkansas Code §22-9-604 provides for payment of 95% of earned progress payments and retention of 5%. At 50% completion, the agency may stop further withholding if performance is satisfactory and the design professional and agency approve; this is discretionary. The enacted text requires agency-held sums to be paid within 30 days after completion and includes proportional release for qualifying phased work. Source
• Section 22-9-604(d) excludes qualifying stored materials and equipment from retainage on that part of the progress payment. The current DFA Financial Management Guide separately describes the state agency’s 95%/5% progress-payment procedure and the discretionary midpoint cessation. Source

Primary sources

• Act 866 of 2015, §1; Ark. Code §22-9-604(a), (c)–(d)
• Arkansas DFA Financial Management Guide, printed p.68, Retainage on Public Construction Contracts

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

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