Tennessee Code 66-34-303 – Withholding of payment or retainage by prime contractor
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In Tennessee Code 66-34-303
- Contract: A legal written agreement that becomes binding when signed.
- written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
This chapter does not prevent the prime contractor from reasonably withholding payment or a portion of payment to the remote contractor, as long as the withheld payment is in accordance with the written contract between the prime contractor and the remote contractor. The prime contractor may also withhold a reasonable amount of retainage as specified in the written contract between the prime contractor and remote contractor; except, that the retainage amount must not exceed five percent (5%) of the amount of the contract.