Ohio retainage

Who and what this applies to

Public improvement contracts within §§153.12–153.14; transportation contracts under §5525.19 are separately governed.

Thresholds and scope

Section 153.12 requires at least 96% of approved labor estimates to be paid; a subcontract may not be paid at a lower rate than the prime.

The rules

• The current §153.12(A), effective September 17, 2026, limits ordinary labor-estimate retention to 4% through its 96% minimum-payment rule. Source
• When the major portion is substantially completed and occupied, in use or accepted, and no other withholding reason exists, associated retained funds and accrued interest are paid within 30 days, less what is reasonably necessary for final completion. Remaining retained funds and interest are due within 30 days after final completion. Source
• Inspected stored materials are paid at 92% of invoice cost, subject to the statutory bid-price ceiling; the balance is paid when incorporated. This is a separate materials rule. Source

Deadlines

Conditional substantial-completion release 30 days; remaining retainage 30 days after final completion.

Primary sources

• section-153.12
• section-153.13
• section-153.14

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

Back to Ohio contractor law · Retainage topic guide.