Prompt Pay Act
Tennessee · Property · §§ 66-34-101 to 66-34-704 · 22 sections
Overview
The Prompt Pay Act governs the timing of payments on construction projects, covering both what an owner owes the prime contractor and what the prime contractor and those below it owe the remote contractors, suppliers, and design professionals further down the chain. It ties payment to applications for completed work and an agreed payment schedule, restricts when payment or retainage may be withheld, requires certain retained or intended payments to be held in escrow or in trust for those entitled to them, and makes overdue amounts accrue interest. An unpaid contractor may give notice of intent to seek relief and pursue remedies that can include attorney's fees and recourse against a bond, and may demand reasonable assurance of payment; these protections generally cannot be waived by agreement, though the act's coverage does not extend to every contract.
Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.
In the courts
Sections of this act have been cited in 20 court decisions.
Most-cited authority: 77 S.W.3d 159 - Trinity Industries, Inc. v. McKinnon Bridge Co.
Sections covered
- Tenn. Code Ann. § 66-34-101Short title3 cites
- Tenn. Code Ann. § 66-34-102Chapter definitions
- Tenn. Code Ann. § 66-34-103Withholding of retainage — Violations — Penalties1 cite
- Tenn. Code Ann. § 66-34-104Retention of portion of contract price in escrow — Applicability — Mandatory compliance3 cites
- Tenn. Code Ann. § 66-34-201Prime contractor entitled to payment from owner1 cite
- Tenn. Code Ann. § 66-34-202Application for payment for work — Payment according to schedule for payments — Review of application by owner's agent1 cite
- Tenn. Code Ann. § 66-34-203Withholding of payment or retainage by owner1 cite
- Tenn. Code Ann. § 66-34-204Payment of retainage by owner1 cite
- Tenn. Code Ann. § 66-34-205Sums intended as payment to be held in trust
- Tenn. Code Ann. § 66-34-301Remote contractor entitled to payment from prime contractor
- Tenn. Code Ann. § 66-34-302Application for payment for work — Payment according to schedule for payments — Interest
- Tenn. Code Ann. § 66-34-303Withholding of payment or retainage by prime contractor
- Tenn. Code Ann. § 66-34-304Payments to be held in trust by prime contractor3 cites
- Tenn. Code Ann. § 66-34-401Payment by remote contractor to remote contractor
- Tenn. Code Ann. § 66-34-501Payment to architect or engineer — Governing provisions
- Tenn. Code Ann. § 66-34-601Interest1 cite
- Tenn. Code Ann. § 66-34-602Nonpayment — Notice of intent to seek relief under chapter — Remedies — Attorney's fees — Bond4 cites
- Tenn. Code Ann. § 66-34-603Additional rights of prime contractors and remote contractors — Reasonable assurances
- Tenn. Code Ann. § 66-34-701Prohibited waiver — Applicability of provisions1 cite
- Tenn. Code Ann. § 66-34-702Construction or home improvement contracts
- Tenn. Code Ann. § 66-34-703Applicability of chapter
- Tenn. Code Ann. § 66-34-704Agreement limiting liability of person furnishing labor, materials, or services
Enacted in other states
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