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Home Preliminary Notice Tennessee Preliminary Notice Guide and FAQs

Tennessee Preliminary Notice FAQs

Fact-checked by the Levelset Legal Team
Last updated August 2, 2022
Sending a Tennessee preliminary notice is an effective way to speed up payment on a construction project. A preliminary notice is an informational document typically sent to the property owner near the beginning of a construction project. Here's what you need to know about the rules and requirements for sending preliminary notice in Tennessee.

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Tennessee preliminary notice requirements for:

  • Direct contractors

Private projects

Direct contractors must send notice on owner-occupied residential projects in Tennessee.

  • Due before job starts
  • Must be sent to the owner
  • Cannot be sent late

Direct contractors - those who have a contract with the property owner - must send a Notice to Owner prior to commencing work or executing the contract on a residential project of 1-4 units, where the owner resides on-site. A contractor who fails to send a required notice in Tennessee won't lose lien rights, but can result in criminal penalties. Additional "notice" language must also be in the contract itself.

Send a Notice

Public projects

Direct contractors are not required to send notice on public construction jobs in Tennessee.

On public jobs, any claims for non-payment are made against the general contractor's bond. Since GCs will not make a claim against their own payment bond, they do not have bond claim rights, and have no preliminary notice requirement.

Private projects

Subcontractors and suppliers must send notice in Tennessee.

  • Due within 90 days of the last date of each month
  • Must be sent to the owner and GC
  • Cannot be sent late

Sub-tier parties must send a Notice of Non-Payment to the property owner and the GC within 90 days of last day of the month labor and materials were provided. For example, if a subcontractor finished work on April 3, they must provide a Notice of Non-Payment within 90 days from April 30 (the last day of the month). Separate notices are required for each month unpaid services or materials are provided.

Send a Notice

Public projects

None required.

On public construction projects, Tennessee does not require preliminary notice to be delivered by any project participant in order to retain the right to make a claim against the payment bond. However, sending preliminary notice even when not required is generally beneficial to promote visibility, open channels for communication, and streamline payment.

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Tennessee Preliminary Notice FAQs

Here are some frequently asked questions about the Tennessee preliminary notice process, with answers written by construction lawyers and payment experts.

Prelim FAQs on Private Projects

Who needs to send a Tennessee preliminary notice on private projects?

On private construction projects, Tennessee requires most parties to send a preliminary notice.

Prime contractors are required to provide a Notice to Owner on residential projects.

Furthermore, on home improvement contracts there is specific notice language that must appear in the contract to best preserve rights; which can be found under Tenn. Code §62-6-508: Requirements for home improvement contracts.

Subcontractors, laborers, and suppliers are all required to give a monthly notice, called a Notice of Non-Payment to secure lien rights. However, if the only unpaid amount is retainage, the Notice of Non-Payment may not be required.

Note: only prime contractors on 1-4 family, owner-occupied residential projects have lien rights; so a monthly notice isn’t necessary on such projects.

What’s the deadline to send a Tennessee preliminary notice?

Notice to Owner

Prime contractors must serve a Notice to Owner prior to the commencement of the work or making of the contract.

Notice of Non-Payment

Every remote contractor must serve a notice of non-payment within 90 days of the last day of each month labor and/or materials are furnished to the project.

→ Download our Tennessee Monthly Notice Calendar – 2022

Who do I need to send a Tennessee preliminary notice to?

A Notice to Owner, as the name suggests, must be provided to the property owner; typically included in the contract between the parties.

The monthly Notice of Non-Payment must be served on the property owner and the general contractor on the project. Additionally, this notice may be provided to the construction lender to attempt to secure priority over the construction mortgage.

What information is required on a Tennessee preliminary notice?

A Notice to Owner must be in the same form as provided under Tenn. Code §66-11-203, and read as follows:

Delivered this _________ day of _________ , 20_________, by _________, Contractor.

The above-captioned contractor hereby gives notice to the owner of the property to be improved, that the contractor is about to begin improving the property according to the terms and conditions of the contract and that under the provisions of the state law (§§ 66-11-101 – 66-11-141) there shall be a lien upon the real property and building for the improvements made in favor of the above-mentioned contractor who does the work or furnishes the materials for such improvements for a duration of one (1) year after the work is finished or materials furnished.

__________________ Contractor

→ Download a free Tennessee Notice to Owner form here

The Notice of Non-Payment must be in substantially the same form as provided under Tenn. Code §66-11-145(d) and contain the following information:

• Claimant’s name & address;

• Prime contractor’s name & address;

• Owner’s name & address;

• General description of the labor/materials provided;

• Last date labor/materials were furnished; &

• Property description.

→ Download a free Tennessee Notice of Non-Payment form here

How should a preliminary notice be sent in Tennessee?

All lien notices in Tennessee can be served by the following means:

• Registered or certified mail, return receipt requested;

• Hand delivery, evidenced by a sworn statement, properly notarized, confirming receipt; or

• Any other commercial delivery service that provides written confirmation of delivery.

Is the Tennessee preliminary notice considered served when sent or when received?

Generally, it’s always recommended to ensure actual receipt when it comes to lien rights. In Tennessee, when mailing lien notices, a rebuttable presumption of service arises at a certain date depending on how the notices were mailed.

• Registered or certified mail, return receipt requested- within 3 business days of mailing

• Overnight, commercial mail- within 1 day of mailing

→ Dive deeper: Mailing Construction Notices: Served when mailed or when received?

What if I send a preliminary notice late?

Notice to Owner

The prime contractor’s Notice to Owner is required, but, failing to send this notice isn’t fatal to the claimant’s lien rights. However, if a contractor attempts to perfect a lien claim without sending this notice, they could be charged with a Class B misdemeanor- so it should absolutely be sent.

Notice of Non-Payment

Failure to send in a timely fashion does not extinguish all of the claimant’s lien rights, but lien rights will be limited to amounts for labor and/or materials in the months in which a timely notice has been served. This is important as a potential lien claimant may be required to send several notices if amounts have been unpaid in multiple months.

Prelim FAQs on Public Projects

Is a preliminary notice required on public projects in Tennessee?

Generally, a preliminary notice on Tennessee public projects is generally not required to preserve the right to make a claim against the payment bond.

However, any party may send a preliminary notice to promote project visibility, open channels of communication, and attempt to facilitate payment.

Furthermore, if the project is bonded, you should request a copy of the payment bond from the prime contractor to see if there are any notice requirements for that specific project.

• See: Tennessee Bond Claims Overview & FAQs

People are asking Tennessee construction attorneys:

Is there anyway to lien a project in WI if the preliminary notice was not sent?

Unfortunately not. Under Wis. Stat. §779.02(2)(b): "Every person other than a prime contractor... shall have a lien and remedy under this subchapter only if within 60 days of performing, furnishing or procuring the first labor, services, materials, plans, or specifications the person serves a written notice." Sending this "Subcontractor Identification Notice" is an absolute prerequisite to filing a Wisconsin mechanics lien claim for subs. This notice can even be sent late, but will only cover labor and materials provided after the owner receives the notice. But failing to provide the notice during the course of the project is fatal to a claimant's lien rights. Since you can't file a mechanics lien, your legal remedies for non-payment will be limited to actions based on breach of contract and unjust enrichment. Furthermore, if the amount in dispute is $10,000 or less, these actions can be brought in a Wisconsin small claims court. We have a few Wisconsin-based construction attorneys in our Expert Center Community that may be able to help. These options and more are explored in this article: Can't File a Lien? Here Are Other Options for Recovery Good luck!
Answered by Alex Benarroche | Levelset Admin

Notice of Commencement in WI

Notices of Commencement aren't really a thing in Wisconsin - the Wisconsin mechanics lien statute doesn't provide for a Notice of Commencement filing. With that being said, there are some other elements of Wisconsin's mechanics lien laws that might be helpful for an owner to know going into their project.

What an owner should expect on a Wisconsin construction project

There are a number of different topics that an owner should be at least a little familiar with when heading into a project on their property. Of course, even if you are wholly unfamiliar with the topics below, it's possible to pull of a construction project without a hitch. But, since you asked, here are some topics that come to mind. Obviously, this isn't an exhaustive list - but understanding these topics will help to avoid common problems that arise on construction projects.

Use a written contract with a specified price

This part is basic and simple, but it's crucial. Always use a written contract for construction work. That way, it's easy to set out the scope of work for the project, the price, how progress payments will work, and how to deal with issues like delays, defects, and other problems. More contract discussion, here: Construction Contract Documents | A Guide to Common Contract Parts.

Require written and signed change orders

One of the easiest issues to pop up on a construction job is to use informal or sloppy change order processes. Requiring that all change orders be in writing and signed will help make sure that you're aware of all changes on the project, and it will avoid disputes over whether extras were approved and what should be paid for those extras.

Further change order discussion here: Change Order Form — Free Template Download and Best Practices.

Understand how mechanics lien rights work

First, know that mechanics lien rights will be available to just about everyone who works on the project - the GC, their subcontractors, suppliers, etc. But, those parties will only be able to file lien claims against your property if they aren't paid for their work. So, instituting a strict lien waiver collection policy can help you make sure everyone gets paid and no liens are filed on the project. Generally, it's a good idea to think of lien waivers as a receipt for payment - any time someone gets paid, they should provide that receipt (waiver). More waiver discussion here: (1) How To Handle Requesting & Tracking Lien Waivers; and (2) The Property Owner’s Guide to Lien Waivers. If a lien does get filed for some reason, this guide will help: A Mechanics Lien Was Filed on My Property – What Do I Do Now?

Get ready to receive preliminary notices

Additionally, it will be helpful to understand the notices you'll be receiving throughout the project. First, the GC will need to provide you with a specific lien notice directly in the contract or shortly after they begin work. Further, the subcontractors and suppliers on your job will also be sending preliminary notices letting you know they're working on the project and that, if worse comes to worst, they'll be able to file a mechanics lien. But, these notices are all simply informational and are intended to build a healthy, transparent, and collaborative project. Plus, if there is an issue later on, you'll have everyone's contact info to help nip that in the bud. You can learn all about those notices here: (1) Why Preliminary Notices Are Great For Property Owners & GCs; and (2) Wisconsin Preliminary Notice Guide and FAQs.

If a Notice of Intent to Lien is received, resolve the dispute

There is a more troubling notice Wisconsin claimants may send, though. If the GC, subcontractor, supplier, etc. isn't getting paid what they're owed, they may send a Notice of Intent to Lien. Essentially, this document is a lien warning - it provides the owner and other recipients notice that there's a payment issue, and it gives those recipients a chance to solve the issue before a lien gets filed. A Notice of Intent to Lien must be sent at least 30 days before a lien can be filed - so, that provides about a month to negotiate and settle payment claims before having to deal with a lien. You can learn more on WI's Notice of Intent rules here: Wisconsin Notice of Intent FAQs & Guide. And, if you do receive one of these notices, this guide will help: I Just Received a Notice of Intent to Lien – What Should I Do Now?
Answered by Matt Viator | Levelset Admin

In Wisconsin is a Preliminary Notice required on a commercial project?

In Wisconsin, for a subcontractor to secure their mechanics lien rights a preliminary notice (known as a Subcontractor Identification Notice Form) should be sent within 60 days of first furnishing labor or materials to the project. This notice can still be sent after the 60 day period, but it will only cover labor and materials provided after the owner received the notice. A mechanics lien is likely unavailable given the circumstances. However, there are still other options available. You can begin to send payment demand letters to escalate your payment dispute. Also, since the amount in dispute is under $10,000 a small claims court claim for breach of contract or unjust enrichment is an option as well.
Answered by Alex Benarroche | Levelset Admin

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About Tennessee preliminary notice rules

Note: Tennessee updated the notice rules as of July 1, 2020. The information on this page has been updated to reflect the changes.

Tennessee requires two different preliminary notices on private construction projects – one for general contractors (on specific types of projects) and another for sub-tier parties. There are no notice requirements on public construction projects.

All construction project participants are generally required to provide some type of preliminary notice before they are allowed to file a claim under Tennessee’s mechanics lien rules. This is true no matter what tier of the payment chain the participant inhabits.

For home improvement contracts, additional “notice” language must actually be built into the contract between the general contractor and the owner. There are no notice requirements on such projects for parties other than direct contractors.

Notice to Owner

For owner-occupied 1-4 family residential buildings in Tennessee, notice is specifically required for all project participants. Direct contractors (those who have a contract with the owner) are required to furnish a Notice to Owner prior to commencing work on the project or making of the contract. This notice requirement is set forth by Tennessee Code § 66-11-203 and the form for the notice, which must be substantially followed, is included in that section. By the wording of the statute, it appears that a notice provided after the contract is executed, but prior to the commencement of work on the project would be timely.

Notice of Non-Payment

Tennessee subcontractors, suppliers, and all other parties who don’t contract directly with the property owner have a deadline much later in the project than the deadline for direct contractors. Sub-tier parties must deliver their notice within 90 days of the last day of each month in which labor and/or materials were provided but remain unpaid. This means that if labor or material was last delivered on June 5th, the notice deadline would be 90 days from June 30.

An interesting note, however, is that Tennessee’s preliminary notice requirement – while not technically a notice of intent to lien – has a deadline far enough after the work is performed or material furnished that the requirement is dependent on amounts remaining unpaid. If the amount are paid within 90 days, there is no need to send a preliminary notice, and if the only amounts remaining unpaid are retainage amounts, no notice is technically required. It’s also worth noting that this notice requirement is a “monthly” notice requirement, and that a notice of nonpayment is due for and after each month in which labor or material were furnished but are not paid by the deadline.

A lien is not valid without a timely notice.

How to send preliminary notice in Tennessee (DIY)

1

Read the step-by-step guide

Read the guide
construction payment Tennessee

Tennessee has different preliminary notice requirements depending on who you have a contract with. Read the step-by-step guide to preparing and sending notice in Tennessee to learn exactly what the rules require.

2

Get the right form

Preliminary notice form download

Tennessee’s construction laws require specific language on the notice form. Failing to prepare the form correctly could cause you to lose lien rights. Fortunately, we make this part easy. Our notice forms were created by construction lawyers to meet Tennessee’s statutory requirements.

3

Fill out the notice form

Be careful! Accuracy is important.
Filling out a preliminary notice

Making a mistake on the preliminary notice form could cause you to lose your right to file a Tennessee mechanics lien if you don’t get paid later on. It’s critical to verify all of the the information to ensure that it’s completely accurate.

4

Deliver the notice

Send a preliminary notice

Tennessee law is strict about serving a preliminary notice. General contractors must send their notice to the property owner before the project begins. Sub-tier parties must provide the Notice of Non-Payment to the property owner and the GC within 90 days of the month they last furnished labor or materials.

  • A Notice to Owner must be sent “by registered mail or otherwise.” For record-keeping purposes, it’s generally a good idea to send it with return receipt requested.
  • A Notice of Non-Payment should be sent by certified mail, with return receipt requested. Personal delivery is allowed but requires a sworn, notarized statement of delivery.
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Tennessee construction payment topics

Mechanics Lien
Lien Waivers
Bond Claim
Prompt Payment
Retainage