Oregon retainage

Who and what this applies to

Public improvement owner retainage under ORS 279C.570; construction/home-improvement and subcontract retainage under ORS 701.420.

Thresholds and scope

Public owner cap 5% of progress payments; §701.420 cap 5% of the contract price of completed work.

The rules

• Under ORS 279C.570(7), a public agency may reduce retainage, and may eliminate future retainage after 50% completion if progress is satisfactory; contractor application and surety approval are ordinarily required. Source
• ORS 701.420 limits owner/contractor/subcontractor ordinary retainage to 5% of completed work. When a contractor pays a subcontractor fully, the owner must release corresponding retained money within 15 days after notice. Source
• ORS 279C.845 separately requires 25% withholding until required certified payroll statements are filed, with release within 14 days after filing; do not treat the ordinary cap as overriding this payroll remedy. Source

Deadlines

Special corresponding subcontract-release payment 15 days; payroll hold release 14 days after filing.

Primary sources

• ors279c.html
• ors701.html

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

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