Public-domain · open source
OpenJurist

Tenn. Code Ann. § 66-34-303

Withholding of payment or retainage by prime contractor

Redline — September 1, 2020 → current.View current text →
Current — September 30, 2020
As of September 1, 2020
Nothing in this chapter shall prevent the contractor from reasonably withholding payment or a portion of payment to the subcontractor, materialman or furnisher; provided, that such withheld payment is in accordance with the written contract between the contractor and the subcontractor, materialman or furnisher. The contractor may also withhold a reasonable amount of retainage as specified in the written contract between the contractor, subcontractor, materialman or furnisher; provided, however, that the retainage amount may not exceed five percent (5%) of the amount of the contract.
This chapter does not prevent the prime contractor from reasonably withholding payment or a portion of payment to the remote contractor, as long as the withheld payment is in accordance with the written contract between the prime contractor and the remote contractor. The prime contractor may also withhold a reasonable amount of retainage as specified in the written contract between the prime contractor and remote contractor; except, that the retainage amount must not exceed five percent (5%) of the amount of the contract.

Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.