How retainage is released on a Washington public project.
Retainage comes back only after every company on the job has filed, the agency has accepted the work, and three state agencies have signed off. Here is the sequence, with the law behind each step.
The release sequence
Work completed
The contract work is done.RCW 60.28.011
Starts: 45-day window for claims against retainage
Every affidavit approved
L&I approves an Affidavit of Wages Paid from the prime and every subcontractor, at every tier. No retainage is released before then.RCW 39.12.040
Acceptance
The agency formally accepts the project.RCW 39.08.030
Starts: 30-day window for payment-bond claims
Where many projects stall. As of Sep 23, 2026, 605 Washington public projects over $1M finished work more than a year ago and have no Notice of Completion on file.L&I project data
Notice of Completion
The agency notifies Revenue, Employment Security, and L&I, and is told to do so immediately after acceptance.RCW 60.28.051DOR Notice of Completion
State release certificates
Each of the three agencies certifies that the taxes due from the contractor on the contract are paid. No retainage is paid before all three.RCW 60.28.051
Retainage released
After the claim period and the certificates, the agency pays the balance, keeping back only enough to cover claims that were filed. The law’s target is 60 days after completion.RCW 60.28.021RCW 60.28.011
Completion and acceptance are different dates unless your contract defines them as the same, so the claim windows can start on different days. Filings are public: approved Intents and Affidavits can be searched on L&I’s site.L&I filing search
Deadlines worth knowing
Each deadline runs from its own trigger. We never compute them from a single date.
| Event | Deadline | Runs from | Source |
|---|---|---|---|
| A contractor pays its subcontractor | 10 days | Receiving payment for that sub’s work | RCW 39.04.250 |
| Notice of a claim against retainage | 45 days | Completion of the contract work | RCW 60.28.011 |
| Notice of a claim against the payment bond | 30 days | The agency’s formal acceptance | RCW 39.08.030 |
| Agency accepts a retainage bond a sub asked for | 30 days | The request, unless the agency shows good cause | RCW 60.28.011 |
| Retainage released (target) | 60 days | Completion, subject to the certificates and any claims | RCW 60.28.011 |
Exceptions apply. For example, federally funded transportation contracts hold no retainage, and small-works contracts can reduce or waive it. This page is information, not legal advice; your contract and your attorney have the final word.
Sources, quoted
Every legal claim on this site links to one of these. Each was opened and checked on Sep 23, 2026.
- RCW 60.28.011 (opens in a new tab)
Retained percentage: bonds, release, and claims
“…public improvement contracts must provide, and public bodies must reserve, a contract retainage not to exceed five percent of the moneys earned by the contractor.”
- RCW 60.28.011 (opens in a new tab)
Release of retainage 60 days after completion
“Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapter 39.12 RCW and this chapter.”
- RCW 60.28.011 (opens in a new tab)
Notice of claims against retainage
“The notice of the lien of the claimant must be given within forty-five days of completion of the contract work, and in the manner provided in RCW 39.08.030.”
- RCW 60.28.011 (opens in a new tab)
Retainage bond requested by a subcontractor
“Within thirty days of receipt of the request, the contractor shall provide and the public body shall accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it.”
- RCW 39.12.040 (opens in a new tab)
Affidavits of wages paid before retainage is released
“…to require the contractor and each and every subcontractor from the contractor or a subcontractor to submit to such officer an affidavit of wages paid before the funds retained according to the provisions of RCW 60.28.011 are released.”
- RCW 39.12.040 (opens in a new tab)
Filing for a nonresponsive subcontractor
“Affidavit forms may only be filed on behalf of a nonresponsive subcontractor who has ceased operations or failed to file as required by this section. The contractor filing the affidavit must accept responsibility for payment of prevailing wages unpaid.”
- RCW 60.28.021 (opens in a new tab)
Payment of retainage after the claim period and state certificates
“After the expiration of the forty-five day period for giving notice of lien provided in RCW 60.28.011 (2), and after receipt of the certificates of the department of revenue, the employment security department, and the department of labor and industries…”
- RCW 60.28.051 (opens in a new tab)
Notice of completion to Revenue, Employment Security, and L&I
“…shall forthwith notify the department of revenue, the employment security department, and the department of labor and industries of the completion of contracts over thirty-five thousand dollars.”
- RCW 60.28.051 (opens in a new tab)
No retainage paid before the three state certificates
“Such officer shall not make any payment from the retained percentage fund or release any retained percentage escrow account to any person, until he or she has received from the department of revenue, the employment security department, and the department of labor and industries certificates…”
- RCW 39.04.250 (opens in a new tab)
Prompt payment to subcontractors
“The contractor or subcontractor shall pay to any subcontractor not later than ten days after the receipt of the payment, amounts allowed the contractor on account of the work performed by the subcontractor.”
- RCW 39.08.030 (opens in a new tab)
Claims against the payment bond
“…unless within 30 days from and after the completion of the contract with an acceptance of the work by the affirmative action of the board, council, commission, trustees, officer, or body.”
- DOR Notice of Completion (opens in a new tab)
Notice of Completion of Public Works Contract (Department of Revenue form)
“The Disbursing Officer must submit this completed notice immediately after acceptance of the work done under this contract.”
- L&I filing search (opens in a new tab)
Public works: interested parties (L&I)
“The system allows you to find an approved Intent or Affidavit filed by a contractor or employer for work on a public works project.”
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