# 48 C.F.R. § 32.103 (2026): Progress payments under construction contracts

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_103

## Section

- **Citation:** 48 C.F.R. § 32.103 (2026)
- **Heading:** Progress payments under construction contracts
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 48 CFR: Federal Acquisition Regulations System / Chapter 1 / Part 32 / Subpart 32.1 / § 32.103: Progress payments under construction contracts.

## Text

When satisfactory progress has not been achieved by a contractor during any period for which a progress payment is to be made, a percentage of the progress payment may be retained. Retainage should not be used as a substitute for good contract management, and the contracting officer should not withhold funds without cause. Determinations to retain and the specific amount to be withheld shall be made by the contracting officer on a case-by-case basis. Such decisions will be based on the contracting officer's assessment of past performance and the likelihood that such performance will continue. The amount of retainage withheld shall not exceed 10 percent of the approved estimated amount in accordance with the terms of the contract and may be adjusted as the contract approaches completion to recognize better than expected performance, the ability to rely on alternative safeguards, and other factors. Upon completion of all contract requirements, retained amounts shall be paid promptly. [51 FR 19716, May 30, 1986, as amended at 60 FR 49711, Sept. 26, 1995]

## Nearby sections

- [48 C.F.R. § 32.100 (2026) Scope of subpart.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_100.md)
- [48 C.F.R. § 32.101 (2026) Authority.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_101.md)
- [48 C.F.R. § 32.102 (2026) Description of contract financing methods.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_102.md)
- [48 C.F.R. § 32.103 (2026) Progress payments under construction contracts.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_103.md)
- [48 C.F.R. § 32.104 (2026) Providing contract financing.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_104.md)
- [48 C.F.R. § 32.105 (2026) Uses of contract financing.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_105.md)
- [48 C.F.R. § 32.106 (2026) Order of preference.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_106.md)
- [48 C.F.R. § 32.107 (2026) Need for contract financing not a deterrent.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_107.md)
- [48 C.F.R. § 32.108 (2026) Financial consultation.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_108.md)
- [48 C.F.R. § 32.109 (2026) Termination financing.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_109.md)
- [48 C.F.R. § 32.110 (2026) Payment of subcontractors under cost-reimbursement prime contracts.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_110.md)
- [48 C.F.R. § 32.111 (2026) Contract clauses for noncommercial purchases.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_111.md)
- [48 C.F.R. § 32.112-1 (2026) Subcontractor assertions of nonpayment.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_112_1.md)
- [48 C.F.R. § 32.112-2 (2026) Subcontractor requests for information.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_112_2.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T48_P32_S32_103. Check the current official text before relying on it. Not legal advice.