Pennsylvania retainage

Who and what this applies to

Private construction contracts under CASPA, excluding six or fewer residential units under simultaneous construction and material purchases for an owner’s own work. Government-owner projects instead use public-payment law.

Thresholds and scope

CASPA §9 supplies retainage-release and bond-substitution rules; it does not state a general percentage cap.

The rules

• Amounts due for release on final completion must be paid within 30 days after final acceptance. Received retainage must be passed to subcontractors within 14 days. Source
• At substantial completion of its own scope, a contractor or subcontractor may facilitate earlier release using an approved-surety maintenance bond for 120% of retained funds; statutory good-faith withholding conditions remain applicable. Source
• Public-owner projects are governed separately under the Procurement Code, not CASPA. Source

Deadlines

Final-acceptance release 30 days; downstream 14 days.

Primary sources

• 0007..HTM
• J-11A-2016mo%20-%201027387208380168.pdf

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

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