Oklahoma retainage

Who and what this applies to

Covered written public construction contracts under the Fair Pay for Construction Act. Section 227 excludes highway, railroad, turnpike and one- through four-family dwelling contracts, and generally listed road/bridge/utility work unless part of a covered construction contract.

Thresholds and scope

Ordinary cap 5%; §226 has different prime and subcontract reduction formulas.

The rules

• Section 226(A) reduces prime retainage to 2.5% of the amount earned to date after more than 50% of the total contract amount is completed and satisfactory progress is determined. For subcontracts, §226(B) reduces retainage to 2.5% of the original subcontract amount once work is determined at least 50% complete. Source
• Under §226(C), release is due within 21 calendar days after a substantial-completion certificate for the project or usable phase, subject to adequate performance and applicable surety approval. Up to 150% of identified incomplete/defective-work costs may remain; release the rest as deficiencies are completed. Source
• Prime contractors pass released retainage down within 10 days; other entities within seven days. Section 113.1 separately prohibits ODOT and Turnpike Authority prime-contract retainage. Source

Deadlines

Conditional owner release 21 days; downstream 10/seven days.

Primary sources

• os61.pdf

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

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