Mississippi retainage

Who and what this applies to

Public contracts under section 31-5-33, excluding Transportation Commission road/bridge contracts; separately, covered private contracts entered on or after July 1, 2024.

Thresholds and scope

Private rule excludes residential homebuilding, residential improvements of 16 or fewer units, agreements of $10,000 or less and public contracts.

The rules

• Public retainage is 5% and the prime’s downstream percentage cannot exceed the owner’s. On prime contracts of at least $250,000 and subcontracts regardless of amount, release half of accumulated retainage at 50% completion when work is on schedule and satisfactory to the architect/engineer; later retainage is 2.5%. Source
• Covered private retainage is capped at 5% of properly done work and qualifying stored materials. Excess retention incurs 1% monthly interest. Owner retainage releases within 60 days after final completion if necessary occupancy certificates have issued. Source
• The private rule preserves contractual withholding for unearned or improperly performed work and the specified payment conditions. Its rights cannot be waived; final completion includes contractual punch-list and closeout duties. Source

Primary sources

• 2024 Miss. Laws ch.387 §3; Miss. Code §31-5-33
• 2024 Miss. Laws ch.387 §1(2)-(3)
• 2024 Miss. Laws ch.387 §1(1), (4), (7), (9)-(10)

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

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