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Home>Levelset Community>Legal Help>Is my client, who engaged me to construct real property in Tennessee, obligated to withhold no more than 5% on my contract. I perform construction management services by hiring other contractors to perform the work

Is my client, who engaged me to construct real property in Tennessee, obligated to withhold no more than 5% on my contract. I perform construction management services by hiring other contractors to perform the work

TennesseeRetainage

I'm engaged to remodel an office building. Is my client obligated under the same Tennessee retention law that I am with respect to my subcontractors retention being withheld.

1 reply

Nov 29, 2018
That's a fair question. Regarding Tennessee retainage rules, it's worth noting that withholding 5% as retainage is not required - rather, that serves as a maximum amount that can be withheld under § 66-34-103(a) of the Tennessee retainage statute. Thus, if a party decided not to hold any retainage, that's perfectly acceptable. For more information on Tennessee's retainage rules, the zlien Tennessee Retainage FAQs should be helpful.
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