Rhode Island retainage

Who and what this applies to

Contracts covered by §37-12-10.1: defined construction contracts and state/municipal public works, excluding contracts separately governed by §37-12-10. The §5-65-1 construction definition uses a $250,000 prime price and excludes one- through four-unit dwelling projects.

Thresholds and scope

Covered progress-payment retainage may not exceed 5%.

The rules

• Section 37-12-10.1 requires the prime to submit substantial-completion notice within 14 days; the owner has 14 days to accept or reject with the required reasons, and silence produces deemed acceptance. Source
• Ordinarily a retainage application may be submitted after 60 days from substantial completion or final resolution of its dispute; payment is due within 30 days after application, with the statutory state-revolving-fund cycle and seven-day-per-lower-tier variations. Section (f) permits specified withholding for defects, deliverables and incomplete work. Source

Deadlines

Notice 14 days; owner response 14 days; application/payment schedule as stated.

Primary sources

• 37-12-10.1.htm
• 5-65-1.htm

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

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