Indiana retainage
Retainage in Indiana — Sources checked
Who and what this applies to
Public-contract retention provisions amended by HEA 1033, P.L.28-2025, effective July 1, 2025; summarized by the Indiana State Board of Accounts.
Thresholds and scope
6% until 50% completion or the statutory 3% alternative until substantial completion.
The rules
- The 2025 amendments to IC 5-16-5.5-3.5 and IC 36-1-12-14 lowered the maximum option retained until 50% completion from 10% to 6%, and lowered the alternative maximum retained until substantial completion from 5% to 3%. The amendments removed the minimum retention amounts. Source
- These are the statutory alternatives described by the State Board of Accounts; they are not a private-contract cap. 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 Indiana contractor law · Retainage topic guide.
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