Missouri retainage

Who and what this applies to

Covered public works under RSMo section 8.960, subject to its federal-funding and delayed-state-grant qualifications.

Thresholds and scope

Cap is normally 5%; the public owner may hold 10% when no bond is required because estimated cost does not exceed $50,000.

The rules

• Public construction-contract and subcontract retainage cannot exceed 5%, subject to the specified small-unbonded-contract exception. Source
• At least 98% of retainage, less lawful offsets/deductions, is payable within 30 days after substantial-completion acceptance and receipt of complete acceptable required documents; state-highway specifications may provide the stated alternative. Rejection requires a written explanation within 14 calendar days. Source
• Remaining minor items may support withholding of 150% of their value. Separate good-faith grounds for disputed/performance-related payment withholding remain under the statute. Source

Primary sources

• RSMo §8.960.1(1)
• RSMo §8.960.1(4)
• RSMo §8.960.1(3)-(4), 6, 8

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

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