TapeAndFloat.comHow to get your drywall retainage back in Texas
Retainage is the part of each drywall payment that the GC holds back until the job is finished. In Texas, a sub should send notice of unpaid retainage within 30 days after finishing its work (Property Code § 53.057).
To get your drywall retainage back in Texas, track the amount held on every job, send a notice of claim for unpaid retainage to the owner and the GC within 30 days after your part of the work is done (Property Code § 53.057), and bill the retainage on a final pay app with the closeout documents and conditional final lien waiver your subcontract asks for. If it still is not paid, the lien affidavit for retainage is due by the 15th day of the third month after the month the GC's original contract is completed (§ 53.052(d)), so calendar both dates the day you finish.
Not legal advice. Check with an attorney. This is a general guide for office staff on private Texas jobs. Your subcontract controls a lot of this (retainage percent, release terms, closeout documents), homestead and residential jobs have extra rules, and public jobs follow different laws. Check specific jobs with a Texas construction attorney.
1. Know your retainage number on every job
Texas defines retainage as the part of a contract payment that does not have to be paid within the month after the work is done or the material delivered (§ 53.001(11)). In practice, it is the percentage the GC holds back from each pay app. From the subcontract, note:
- The retainage percent, and whether it applies to change orders.
- When it is due: after your scope, after the whole project, after the owner releases retainage to the GC, or something else.
- The closeout documents required before release.
Keep a running retainage balance from every pay app. A retainage lien is valid only for the amount your contract says will be retained (§ 53.025), so your number should match the contract exactly. Our pay application guide shows where the retainage line goes.
2. Calendar two different completion dates
- Your completion: the day your drywall subcontract is completed, terminated or abandoned. This starts the 30-day retainage notice clock (§ 53.057).
- The GC's completion: the day the original contract (GC with owner) is completed, terminated or abandoned. This drives the lien affidavit deadline (§ 53.052(d)) and how long the owner must keep 10 percent reserved (§ 53.101). Completion means the work is actually finished, including extras and change orders, but not warranty work (§ 53.001(15)).
To pin down the GC's date:
- Affidavit of completion. If the owner files one, it is prima facie evidence of the completion date. The owner must send a copy to subs who sent a § 53.056 or § 53.057 notice, and to anyone who furnished labor or materials and asked in writing (§ 53.106).
- Termination or abandonment notice. On non-residential jobs, the owner must notify subs who sent notices or asked in writing within 10 days. If the owner skips a required notice, the sub does not have to comply with § 53.057 and may file a lien affidavit under § 53.052 (§ 53.107).
- Information requests. Within 10 days of a written request, the owner must give you the legal description, any surety bond and the original contract date (§ 53.159).
3. Send the retainage notice within 30 days of finishing
If your subcontract provides for retainage and you have not already covered it in a § 53.056 notice of claim, send a Notice of Claim for Unpaid Retainage to the owner (or reputed owner) and the original contractor by the earlier of the 30th day after your contract is completed, terminated or abandoned, or the 30th day after the original contract is terminated or abandoned (§ 53.057(a-1)).
The statute supplies the form: date, project description or address, type of labor or materials, the original contractor's name, the party you contracted with if different, and total retainage unpaid. You may attach an invoice (§ 53.057(a-2), (a-3)). Deliver it in person, by certified mail, or by a traceable private service that confirms receipt (§ 53.003(b)). A deadline that lands on a weekend or legal holiday moves to the next business day (§ 53.003(e)).
Tell the GC's PM first that it is a routine notice, not a dispute.
4. Bill the retainage with a clean closeout package
Send a final pay app showing 100 percent complete and the full retainage due, with everything the subcontract lists, often:
- A Conditional Waiver and Release on Final Payment in the statutory form (§ 53.284); a waiver that does not substantially follow the right form is unenforceable (§ 53.281).
- A bills-paid affidavit if requested; it can be made a condition of payment, and it must list anyone you still owe (§ 53.085).
- Punch list sign-off, warranty letter and other closeout items.
Do not sign the unconditional final waiver until the money clears. Nobody may require one for a payment you have not received (§ 53.283).
5. Follow up on the money
Because the owner must keep 10 percent reserved during the job and for 30 days after the original contract is completed (§ 53.101), retainage rarely moves the day you finish punch.
On private jobs, a contractor who receives a payment from the owner must pay each sub its share for properly performed work within 7 days (§ 28.002(b)). Unpaid amounts bear interest at 1.5 percent a month (§ 28.004), and a court may award attorney's fees (§ 28.005). Follow up by email with the amount, pay app number and closeout date, and ask for a pay date.
6. If it is still not paid: the lien affidavit
File the retainage lien affidavit with the county clerk by the 15th day of the third month after the month the original contract was completed, terminated or abandoned (§ 53.052(d)), and send a copy to the owner and the original contractor within 5 days after filing (§ 53.055). With the retainage notice, that gives you a lien on, and makes the owner personally liable for, the reserved funds (§ 53.057(f)). Section 53.103 has a separate 30-day filing rule for reserved funds, so call an attorney as soon as the money looks stuck. A suit to foreclose generally must be filed within one year after the last day to file the affidavit (§ 53.158).
7. A worked example
Made-up dates for a commercial job with a $87,200 drywall subcontract and 10 percent retainage, with no termination or abandonment:
Subcontract incl. CO #1 ............ $87,200 Retainage held (10%) ............... $ 8,720 Drywall scope complete ............. Wed Feb 10, 2027 Retainage notice to owner + GC by .. Fri Mar 12, 2027 (§ 53.057) GC's original contract complete .... Wed Apr 21, 2027 Owner's 10% reserve runs through ... about May 21, 2027 (§ 53.101) Retainage lien affidavit by ........ Thu Jul 15, 2027 (§ 53.052(d)) Copy of affidavit to owner + GC .... within 5 days of filing (§ 53.055)
8. After you are paid
Sign the unconditional final waiver once funds clear. If you filed a lien affidavit, provide a release within 10 days after a written request (§ 53.152).
TapeAndFloat is an office assistant for drywall subs and small GCs. During the free pilot it tracks retainage per job, calendars your retainage notice and lien affidavit dates and flags retainage that is past due. If that would help your office, take a look at the Austin pilot, or try the free office tracker.
Official sources
- Texas Property Code, Chapter 53: Mechanic's, Contractor's, or Materialman's Lien (§§ 53.001, 53.003, 53.025, 53.052, 53.055, 53.057, 53.085, 53.101, 53.103, 53.106, 53.107, 53.152, 53.158, 53.159, 53.281, 53.283, 53.284)
- Texas Property Code, Chapter 28: Prompt Payment to Contractors and Subcontractors (§§ 28.002, 28.004, 28.005)
Not legal advice. General summary as of October 25, 2026. Check specific jobs with a Texas construction attorney.
Frequently asked questions
When is the Texas notice for unpaid retainage due?
By the earlier of 30 days after your subcontract is completed, terminated or abandoned, or 30 days after the original contract is terminated or abandoned. Send it to the owner and the original contractor (Property Code Sec. 53.057). Not legal advice.
When is the lien affidavit for retainage due?
By the 15th day of the third month after the month the original contract was completed, terminated or abandoned (Sec. 53.052(d)). Send a copy to the owner and the original contractor within 5 days after filing (Sec. 53.055).
How long does the owner have to hold 10 percent?
Sec. 53.101 requires the owner to reserve 10 percent during the work and for 30 days after the work under the original contract is completed. When the GC releases your retainage is set by your subcontract.
Which lien waiver do I send to get retainage paid?
A Conditional Waiver and Release on Final Payment in the statutory form (Sec. 53.284) with your final pay app. Sign the unconditional final waiver only after the money clears (Sec. 53.283).