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
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.