Retainage is a portion of the construction contract fee that is withheld until the LG is satisfied the work is substantially complete. §2252.032 of the Texas Government Code allows up to 10 percent of the contract price to be retained, depending on the contract value. However, federal concerns over prompt pay ( ) for subcontractors require the LG to follow strict guidelines for holding retainage if federal funds are used for the project. Details regarding specific retainage that must be followed and properly documented are found in of this Manual and corresponding .