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2023 Tennessee Code
Title 66 - PROPERTY (§§ 66-1-101 — 66-38-101)
Chapter 34 - PROMPT PAY ACT (§§ 66-34-101 — 66-34-704)
Part 2 - OWNER/CONTRACTOR PAYMENT (§§ 66-34-201 — 66-34-205)
Section 66-34-203 - Withholding of payment or retainage by owner
Universal Citation:
TN Code § 66-34-203 (2023)
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This chapter does not prevent the owner from reasonably withholding payment or a portion of a payment to the prime contractor, as long as the withholding is in accordance with the written contract between the owner and the prime contractor. The owner may also withhold a reasonable amount of retainage as specified in the written contract between the owner and the prime contractor, as long as the retainage amount does not exceed five percent (5%) of the amount of the contract.
Amended by 2020 Tenn. Acts, ch. 749, s 20, eff. 7/1/2020.
Acts 1991, ch. 45, § 1; 2007 , ch. 201, § 4.
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