Section 66-34-203 - Withholding of payment or retainage by owner

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.