Utah retainage

Who and what this applies to

Written nonresidential commercial/industrial construction contracts under §13-8-5, including covered public agencies; mixed projects are covered only in proportion to nonresidential square footage. Law in force through December 31, 2026.

Thresholds and scope

Ordinary retention is capped at 5% of each payment and 5% of total construction price; downstream percentages track a lower owner percentage.

The rules

• Section 13-8-5(3) sets the 5% caps. Owner/public-agency retained money must be separately accounted for in an interest-bearing account for the contractor/subcontractors under subsection (4). Source
• Under subsection (5), requested retention and accrued interest are released within 45 days after the latest applicable statutory trigger: receipt of the bill, occupancy/final-acceptance notice, permitted occupancy/use without a certificate, or acceptance of final pay quantities. Partial occupancy yields proportional release. Source
• Subsection (8) allows necessary withholding for breach/default and, after substantial completion, up to twice the fair-market value of incomplete/nonconforming work, with a written explanation within 45 days. Source

Deadlines

Conditional release 45 days; downstream payment 10 days.

Primary sources

• C13-8-S5_2023022720230227.pdf

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

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