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State rules

Florida

Retainage on state and local public construction is capped at 5 percent, and separate prompt-payment acts cover state, local and private construction.

Retainage

Public works. Florida caps retainage on state and local government construction contracts at 5 percent of each progress payment. Earlier versions of the statutes allowed 10 percent through the first half of a project; the current cap applies throughout. Separate sections govern state agency contracts and local government contracts, and both include procedures for the contractor to request release of retainage after substantial completion through a punch-list process.

Private works. Florida's private construction prompt-payment statute does not cap the retainage percentage, which is set by contract, but it does address when retainage becomes due and payable once the contract's conditions for release are met.

Prompt payment

Florida has three separate prompt-payment schemes for construction:

  • State agencies. The Florida Prompt Payment Act for public construction sets deadlines for state agencies to pay pay requests and to process retainage after completion, with interest on late payments, and requires contractors to pay subcontractors and suppliers within a set period after receiving payment.
  • Local governments. The Local Government Prompt Payment Act sets deadlines for counties, municipalities and other local public entities to pay construction pay requests, with a dispute-resolution procedure and interest for late payment, and requires contractors to pass payment down within a set number of days.
  • Private construction. The Construction Contract Prompt Payment Law sets when payment is due under a private construction contract, provides interest for late payment, and requires contractors to pay subcontractors and suppliers within a set period after receiving payment, with limited exceptions.

Each act has its own deadlines, interest provisions and exclusions, and they are amended from time to time. Confirm the current text for the kind of project you are on.

Official sources

Last reviewed 2026-10-18. If you know of a change since then, reply to any issue of The Float and we will check it.