Kansas retainage

Who and what this applies to

Public contracts within K.S.A. §§16-1902–1908 and private contracts within §§16-1801–1807. The public definition excludes roads, highways and bridges, and §16-1908 excludes specified KDOT section-109 contracts. The private act excludes residential property of four or fewer units and public works, and applies to covered contracts entered on or after July 1, 2005.

The rules

• The public and private acts ordinarily limit retainage to 5% of the contract or subcontract value. A higher rate, up to 10%, requires a determination that it is needed to ensure performance; subsection (b) separately allows increases for deficient performance. The private act also limits retention from an undisputed payment to 10%. Source
• The public release rule generally requires payment of undisputed retainage within 30 days after substantial completion as part of the regular payment cycle. Retainage attributable to continuing work may be held until 30 days after that work is completed. Fault-based incomplete-work withholding is limited to 150% of its value and paid within 45 days after completion through the regular payment cycle. Source
• The private act requires the owner to release undisputed retainage within 30 days after substantial completion, permitting retention attributable to continuing work until 30 days after completion. Its separate 150% incomplete-work withholding requires fault by the responsible contractor or subcontractor and release within 45 days after that work is completed. Source

Primary sources

• K.S.A. §16-1904
• K.S.A. §16-1804
• K.S.A. §16-1902
• K.S.A. §16-1908
• K.S.A. §16-1807

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

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