Washington retainage

Retainage in Washington — Sources checked

Who and what this applies to

Public-improvement contracts under RCW 60.28.011, subject to the statute’s financing exceptions.

Thresholds and scope

Ordinary public-contract retainage may not exceed 5% of money earned.

The rules

  • RCW 60.28.011(1)(a) reserves up to 5% as a trust fund for contract claimants and the specified state taxes and assessments. Federally funded transportation contracts instead use the contract bond protection under subsection (1)(b). Source
  • Under subsection (3), a contractor may request reduction of retainage to 100% of the value of work remaining. The ordinary release deadline is 60 days after completion of all contract work, subject to Chapter 39.12 and the statutory claim and tax protections. Source
  • Under subsection (3)(a), after completing all work other than landscaping, the contractor may request release; payment follows 60 days after that request, with continuing retention of 5% of the landscaping earnings and the same statutory conditions. Source
  • Subsection (10) separately excludes contracts funded partly or wholly by the Farmers Home Administration and subject to its regulations from subsections (1)-(9). Source

Deadlines

Release depends on completion and satisfaction of statutory wage, tax, and claim conditions.

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.

Back to Washington contractor law · Retainage topic guide.

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