Tennessee
Who Can Claim: Tennessee is an “unpaid balance” state. Contractors under direct contract with owner (Direct). Subcontractors, including subcontractors not directly contracted to the prime contractor, mechanics, materialmen and laborers. Registered architects, land surveyors and professional engineers. Machinists, manufacturers of machinery and lessors of machinery, if the machinery is attached as a fixture to the property. The furnisher of rental equipment who does not perform any labor on the project. (Indirect)
Required Notice and Timing: Direct contractors must send a Notice to the owner prior to commencement of work. Any other person providing labor, services or materials for a construction project who does not have a contract with the prime contractor must send a Notice of Non-Payment within 90 days of the last day of the month supplied. Separate Notices are required for each month unpaid labor/services are provided.
- supplied on Jan 10 last day of the month Jan 31. 90 days from Jan 31.
Lien Filing: Direct contractors have 1 year of last furnishing to claim a lien. Any other tiers, must file a Claim of Lien in the office of the Clerk of Superior Court in the county in which the property is located within 90 days after either you have completed your work or the last date you furnished materials. Serve recorded copy of Notice of Lien to the owner by registered or certified mail. MUST DO A NOTICE OF NONPAYMENT TO ESTABLISH LIEN RIGHTS. DOES NOT NEED TO NOTICE EVERY MONTH.
Lawsuit Filing: Contractors under direct contract with owner (Direct) must initiate a lawsuit to enforce a mechanics lien within 1 year after the completion of the work. All lien claimants without a direct (Indirect) contract with the property owner must initiate an action to enforce their lien within 90 days of the lien’s filing.However, the period may be shortened to 60 days from receipt of a demand from the property owner for enforcement of the lien.
Public/Federal Work: Tennessee does not require preliminary notice to be delivered by any project participant in order to retain the right to make a claim against the payment bond on public construction projects. However, you may send a preliminary notice for visibility.
Lawsuit Filing: Claimants not under direct contract with the contractor must give the contractor written notice of claim after last furnishing, but within 90 days of project completion.