Louisiana retainage
Retainage in Louisiana — Sources checked
Who and what this applies to
Public works executed under the statutory part covered by La. R.S. 38:2248; the Department of Transportation and Development is excluded.
Thresholds and scope
Withholding caps: 10% of contract price below $500,000; 5% at $500,000 or more.
The rules
- Section 2248(A) limits contractual withholding to the stated caps until expiration of 45 days after recording formal acceptance or notice of contractor/subcontractor default. Source
- Punch lists must include estimated correction costs. The agency may not withhold more than the punch-list value; completed items are paid after the 45-day lien period. The section cannot be waived and does not apply to DOTD. Source
- Subsection C separately permits contractual liquidated-damage withholding on specified flood and integrated coastal-protection projects after the statutory period, considering granted time extensions. 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 Louisiana contractor law · Retainage topic guide.
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