Massachusetts retainage

Who and what this applies to

Covered private contracts under chapter 149, section 29F.

Thresholds and scope

Original owner contract must be at least $3 million and lien-eligible under chapter 254 §§2 or 4; projects of one to four dwelling units are excluded.

The rules

• Retainage cannot exceed 5% of any progress payment on covered contracts. Source
• Prime notice of substantial completion is due within 14 days; the owner has 14 days after receipt to accept or reject with the statutory explanation and good-faith certification. Absent a compliant timely rejection, acceptance is deemed. Source
• Unless the contract allows earlier submission, retainage may be applied for after 60 days from substantial completion or final resolution of the specified dispute. Payment follows within 30 days of application, with up to seven additional days per lower tier and the limited, documented withholding allowed by subsection (g). Source

Primary sources

• M.G.L. c.149 §29F(a)-(b)
• M.G.L. c.149 §29F(c)-(e)
• M.G.L. c.149 §29F(f)-(g)

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

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