2015 Tennessee Code
Title 66 - Property
Chapter 34 - Prompt Pay Act
Part 3 - Contractor/Subcontractor, Materialman or Furnisher Payment
§ 66-34-303 - Contractor -- Withholding of payment or retainage.
Nothing in this chapter shall prevent the contractor from reasonably withholding payment or a portion of payment to the subcontractor, materialman or furnisher; provided, that such withheld payment is in accordance with the written contract between the contractor and the subcontractor, materialman or furnisher. The contractor may also withhold a reasonable amount of retainage as specified in the written contract between the contractor, subcontractor, materialman or furnisher; provided, however, that the retainage amount may not exceed five percent (5%) of the amount of the contract.
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