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What type of retainage notice to the contractor/owner is required at the start of a contract in Tennessee?

TennesseePreliminary Notice

Texas based company is doing work on a private job in Tennessee. The contract states that the agreement is governed by the laws of the state of Tennessee. Texas requires a notice of retainage but I can't find any requirement for Tennessee. Should I send one anyway based on the Texas requirement?

1 reply

Apr 16, 2018

That's a fair question, and adapting to another state's laws and requirements can be a struggle. Regardless of what the contract says (though, in this case it would be the same), a project's notice requirements will be bound by the laws of the state where the project is located. Thus, even where it's a Texas company performing work in another state, only the project state's notice requirements need to be followed. In Tennessee, prime contractors, subcontractors, laborers, and suppliers are all required to give preliminary notice on all projects except 1 to 4 family residential owner-occupied buildings. For those projects, the “notice” required must be contained within the contract itself between the home improvement general contractor and the owner-occupier. Still, though, the type of notice required will be dependent on role. For prime contractors, a Notice to Owner must be sent to the owner prior to commencing the project. For subs, suppliers, and everyone else who isn't in direct contract with the owner, notice must be sent within 90 days of the last day of each month in which labor and/or materials were provided but remain unpaid. For more information regarding Tennessee's notice requirements, check out our Tennessee FAQs. This post might also be helpful: Tennessee Mechanics Lien Law: 5 Things to Know.

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