66-34-303 - Contractor Withholding of payment or retainage. - Tennessee Statutes

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 provisions of 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.

[Acts 1991, ch. 45, § 1; 2007, ch. 201, § 6.]