Our Guide to Preliens, Waivers, Mechanic's Liens, and Bond Claims in Tennessee
Tennessee
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This is an overview of the state's statutory approach to lien law and what contractors might want to focus on to ensure lien rights are established timely, correctly, and effectively.
While we are happy to provide this guide as a quick reference, we HIGHLY encourage that you work with a construction attorney to help you with your particular circumstances in our complex construction lien law environment.
Tennessee Quick Overview
Pursuant Code | Tenn. Code Ann. § 66-11-101 et seq. | |
Prelien Required for Private/Commercial Projects | Yes | |
Prelien Required for Public Projects | No | |
TN Statutory Relief | Unpaid Balance | |
Lien Milestone Event | Overall project completion | |
Lien Enforcement Deadline | 6 months to 1 year | |
Waivable Lien Rights | No | |
Supplier to Supplier Rights | Condiional, check statutes | |
Prelien Document Name(s) | Notice to Owner | |
Prelien Minimum Information | Remote contractor's name, description of work, amount owed, date of last furnishing, property description | |
Prelien Minimum Notifications | Owner, Prime Contractor | |
Prelien Recording Requirement | No | |
Prelien Notarized | No |
Understanding the Prelien Process on Construction Projects in Tennessee by Role
Tennessee requires remote contractors (including subcontractors and suppliers not in privity with the owner) to serve a notice of nonpayment within 90 days of the last day of the month labor or materials were furnished and unpaid. Prime contractors do not have a preliminary notice requirement.
Possible Exceptions, Special Circumstances, and Caveats in Tennessee
Owner Occupied Residential: Notice required only for residential property of 1-4 units
Residential: Yes, preliminary notice requirements apply specifically to residential projects with 1-4 units
Mechanic's Liens in Tennessee
Tennessee mechanics lien law (Tenn. Code Ann. § 66-11-101 et seq.) requires that lien claims be filed within 90 days after the project is completed or abandoned, unless the claimant has recorded their contract earlier. Subcontractors and material suppliers must also serve a 'notice of nonpayment' within 90 days of the end of each month in which labor or materials were provided but not paid for. To enforce the lien, a lawsuit must be initiated within 1 year of completion for prime contractors and within 90 days of serving the lien for remote contractors. A notice of completion recorded by the owner shortens the filing window to 30 days.
Bond Claims in Tennessee
Tennessee public project bond claims are governed by Tenn. Code Ann. § 12-4-201 et seq. On public projects, unpaid subcontractors and suppliers may make a bond claim against the payment bond provided by the general contractor. Notice of nonpayment must typically be given in writing to the prime contractor within 90 days of last labor or materials furnished. Suit must generally be filed within 6 months of the final completion of the contract.
Construction Lien Waivers in Tennessee
Required Format: Tennessee does not require any specific statutorily required verbiage to be valid but be sure to check with your constuction attorney and consult any relevant state statutes.
Required Notarization: Tennessee does not require waivers to be notarized.
Lien waivers in Tennessee are typically handled by agreement. There are no statutory forms or requirements for waivers, but lien rights may be waived via contract.
Learn more about waivers here, including the when and how to use various types of waivers, the difference between a Lien Waiver and a Lien Release, what to look for before signing, and more.
- As a client, you'll have free access to our system that easily creates statutorily correct lien waivers.
- Through our technology partner Prelien Pro, you can also access best-in-class lien waiver management software, allowing you to easily track, collaborate, and share lien waivers with all your trade partners.
Assessors' websites in Tennessee counties
Most often, the county Assessor's office is the 'go-to' resource for finding online lien-related information for construction project parcels, including ownership records, special warranty deeds, and more. Counties that we've not yet found online (those with '*') link to a Google search for your convenience.
Other Important Construction Links in Tennessee
Frequently Asked Questions (FAQs) on Tennessee Lien Processes for Contractors
Do I need to send a preliminary notice to have lien rights in Tennessee?
Only remote contractors (e.g., subcontractors and suppliers) are required to send a 'notice of nonpayment' within 90 days after the end of each month in which labor or materials were provided and not paid for. Prime contractors generally do not have a preliminary notice requirement.
What is the deadline to file a mechanics lien in Tennessee?
The lien must be filed within 90 days after the project is completed or abandoned. If the owner files a Notice of Completion, the deadline is shortened to 30 days from that filing date.
How do I enforce a mechanics lien in Tennessee?
For prime contractors, a lien enforcement action must be filed within 1 year of completion or abandonment. For subcontractors and suppliers, the action must be filed within 90 days after serving the lien.
Can I file a lien if I'm a supplier to a subcontractor on a private project?
Yes, but you must provide a notice of nonpayment within 90 days of the end of any month in which unpaid materials were furnished. Then, you must file your lien within 90 days of project completion or abandonment.
Are bond claims required on public projects in Tennessee?
Yes. Unpaid subcontractors and suppliers can file against the prime contractor's payment bond. Notice of nonpayment must be provided within 90 days, and legal action must generally begin within 6 months after final completion.
We Set the Standard for the Construction Industry
Not only do we provide you with the tools, knowledge, and team to ensure you feel confident your rights are secured, but we're prepared for the trenches and ready to coordinate with your legal team when things "go sideways" on one of your projects.
