# 48 CFR § 32.103: 32.103 Progress payments under construction contracts

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-48-32.103

## Section

- **Citation:** 48 CFR § 32.103
- **Heading:** 32.103 Progress payments under construction contracts
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 48—Federal Acquisition Regulations System > CHAPTER 1—FEDERAL ACQUISITION REGULATION > SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS > PART 32—CONTRACT FINANCING > Subpart 32.1—Financing for Other Than a Commercial Purchase

## 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 CFR § 32.100 32.100 Scope of subpart.](https://www.frixlaw.com/law-library/statutes/ecfr-48-32.100.md)
- [48 CFR § 32.101 32.101 Authority.](https://www.frixlaw.com/law-library/statutes/ecfr-48-32.101.md)
- [48 CFR § 32.102 32.102 Description of contract financing methods.](https://www.frixlaw.com/law-library/statutes/ecfr-48-32.102.md)
- [48 CFR § 32.103 32.103 Progress payments under construction contracts.](https://www.frixlaw.com/law-library/statutes/ecfr-48-32.103.md)
- [48 CFR § 32.104 32.104 Providing contract financing.](https://www.frixlaw.com/law-library/statutes/ecfr-48-32.104.md)
- [48 CFR § 32.105 32.105 Uses of contract financing.](https://www.frixlaw.com/law-library/statutes/ecfr-48-32.105.md)
- [48 CFR § 32.106 32.106 Order of preference.](https://www.frixlaw.com/law-library/statutes/ecfr-48-32.106.md)
- [48 CFR § 32.107 32.107 Need for contract financing not a deterrent.](https://www.frixlaw.com/law-library/statutes/ecfr-48-32.107.md)
- [48 CFR § 32.108 32.108 Financial consultation.](https://www.frixlaw.com/law-library/statutes/ecfr-48-32.108.md)
- [48 CFR § 32.109 32.109 Termination financing.](https://www.frixlaw.com/law-library/statutes/ecfr-48-32.109.md)
- [48 CFR § 32.110 32.110 Payment of subcontractors under cost-reimbursement prime contracts.](https://www.frixlaw.com/law-library/statutes/ecfr-48-32.110.md)
- [48 CFR § 32.111 32.111 Contract clauses for noncommercial purchases.](https://www.frixlaw.com/law-library/statutes/ecfr-48-32.111.md)
- [48 CFR § 32.112-1 32.112-1 Subcontractor assertions of nonpayment.](https://www.frixlaw.com/law-library/statutes/ecfr-48-32.112-1.md)
- [48 CFR § 32.112-2 32.112-2 Subcontractor requests for information.](https://www.frixlaw.com/law-library/statutes/ecfr-48-32.112-2.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-48-32.103. Check the current official text before relying on it. Not legal advice.