Wisconsin retainage

Who and what this applies to

State construction contracts and the specified subcontracts governed by Wisconsin Statutes 16.855(19).

Thresholds and scope

This section is not a cap for every Wisconsin public or private contract; Section 16.855 contains project and procurement exceptions.

The rules

• Section 16.855(19)(a) caps ordinary retainage at 5% of the estimate until 50% completion. After 50%, no additional retainage is allowed unless the department certifies unsatisfactory progress; total retainage then cannot exceed 10% of the value of completed work. Source
• At substantial completion, Section 16.855(19)(a) requires payment of retained amounts less the value of corrective or unfinished work. Subsection (19)(b) applies corresponding 5%, 50%-completion, and 10% rules to the subcontracts specified in subsection (14)(e). Source
• Section 16.855(19)(b) requires the general prime contractor’s payments under that paragraph within seven calendar days after receipt from the department or Board of Regents. Subsection (19)(c) excludes contracts awarded under Section 16.858. Source

Deadlines

Substantial completion triggers release less corrective/unfinished work; covered subcontract payments follow within seven calendar days of receipt.

Primary sources

• 16.pdf

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

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