2015 Tennessee Code
Title 66 - Property
Chapter 34 - Prompt Pay Act
Part 2 - Owner/Contractor Payment
§ 66-34-203 - Withholding of payment or retainage by owner.
Nothing in this chapter shall prevent the owner from reasonably withholding payment or a portion of a payment to the contractor; provided, that such withholding is in accordance with the written contract between the owner and the contractor. The owner may also withhold a reasonable amount of retainage as specified in the written contract between the owner and the contractor; provided, however, that the retainage amount may not exceed five percent (5%) of the amount of the contract.
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