Iowa retainage
Retainage in Iowa — Sources checked
Who and what this applies to
Public improvements governed by Iowa Code chapter 573; the current 2026 codification incorporates 2025 Acts chapter 29.
Thresholds and scope
3%, replacing the former 5% rule.
The rules
- Section 573.12 now caps public progress retention at 3%. Retention from a subcontractor is limited to the lesser of 3% or the percentage specified in the subcontract. Source
- Under §573.14 the fund ordinarily remains held for 30 days after completion and final acceptance. Proper claims can require continued withholding of the statutory doubled claim amount while the balance is released. The section preserves its contrary-federal-requirement exception. 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 Iowa contractor law · Retainage topic guide.
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