South Carolina retainage
Retainage in South Carolina — Sources checked
Who and what this applies to
State-procurement construction under §11-35-3030(4); separately, covered Chapter 29-6 contracts.
Thresholds and scope
State progress-payment retainage may not exceed 3.5%; Chapter 29-6 separately permits a reasonable retainage amount within its scope/exclusions.
The rules
- Section 11-35-3030(4) caps state construction installment retainage at 3.5%. Each prime/subcontract division is treated separately; certified completed divisions’ retained funds are released forthwith to the prime and within 10 days after prime receipt to the responsible subcontractor. Source
- Section 29-6-40 permits reasonable retainage; §29-6-60 excludes residential homebuilders, 16-or-fewer-unit residential improvements and private owners of improvements not financed by a nonowner. Do not apply the state-procurement cap indiscriminately to private contracts. Source
Deadlines
Certified state division release forthwith; downstream 10 days.
Primary sources
Sources reviewed 2026-09-30. This guide covers the projects and rules stated above.
Not legal advice. This is general legal information. Laws and project facts differ; confirm the applicable requirements for your project.
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