Illinois retainage
Retainage in Illinois — Sources checked
Who and what this applies to
Limited to the construction category and statutory provision described below.
The rules
- For covered private construction contracts, Illinois permits retainage of up to 10% of payments before 50% completion. At 50% completion, accumulated retainage must be reduced so no more than 5% is held; later payments may have no more than 5% retained. The Contractor Prompt Payment Act excludes contracts spending public funds, single-family residences and multifamily residences with 12 or fewer units in one building. Source
Primary sources
Sources reviewed 2026-09-30. This guide covers the projects and rules stated above.
Not legal advice. This is general legal information. Laws and project facts differ; confirm the applicable requirements for your project.
Back to Illinois contractor law · Retainage topic guide.
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