Tennessee
Prompt Payment Law Overview - Private Projects

Tennessee's prompt payment statutes set forth specific timeframes when general contractors, subcontractors, suppliers, and others involved with a construction project must be paid.  This page provides an overview of these regulations, and addresses some frequently asked questions related to the Tennessee prompt payment laws. You can also read the Full Text of Tennessee's Prompt Payment Statutes.

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Tennessee Prompt Payment Laws
Owner Payment to Prime Contractor
Payment is due in accordance with the schedule for payments established within the contract and within 30 days after application for payment is timely submitted, in accordance with the schedule.
Prime Contractor to Subcontractor
Payment is due in accordance with the schedule for payments established within the contract and within 30 days after application for payment is timely submitted, in accordance with the schedule.

Payment is subject to a valid pay-when-paid clause.
Subcontractor to Lower Tier
Payment is due in accordance with the schedule for payments established within the contract and within 30 days after application for payment is timely submitted, in accordance with the schedule.

Payment is subject to a valid pay-when-paid clause.
What You Need To Know
Important Details
Tennessee prompt pay laws do not apply to residential projects of 4 or fewer units

Debt outstanding grows at the statutory rate, unless otherwise agreed to.

Attorneys fees may be awarded if money is withheld in bad faith.

Prompt Payment in Construction

Fair & Fast Payment Resources Expertly Drafted With Legal Integrity

Pre-lien notices for past due accounts has definitely helped us to get the necessary attention from customers to get paid faster.

- Lana Peterson -

Tennessee Frequently Asked Questions

Prompt Payment Frequently Asked Questions

In order for the provisions of the Tennessee prompt pay statutes to apply, the party requesting payment must be entitled to payment pursuant to the terms of the contract, and must submit a pay request based on the labor and/or materials furnished.

In order for attorneys’ fees to be awarded, a claimant must be successful in an action to recover payments, and the withholding party must be found to have acted in bad faith.

No. Tennessee doesn’t allow miscellaneous amounts to be included on the face of a mechanics lien.

There is no specific requirement for interest to being to accrue on late payments in Tennessee other than the requirement that the payment must be late pursuant to the prompt pay statute.

Tennessee doesn’t specifically set forth reasons for which payment may be withheld by statute, so it is likely that the parties’ contract will govern acceptable reasons for withholding payment.

Sending a notice of intent to lien and prompt payment demand is generally the best method for encouraging parties to make payment.