Owner to Prime Contractor (Private): 30 days after receipt of invoice.
Prime Contractor to Subcontractor (Private): 30 days after receipt of payment from owner.
Interest/Penalties (Private): Interest at statutory rate unless otherwise agreed by contract. Prevailing party entitled to attorneys’ fees only if other party acted in bad faith.
Owner to Prime Contractor (Public): Unless otherwise provided by contract, 45 days after receipt of invoice.
Prime Contractor to Subcontractor (Public): 30 days after receipt of payment from owner.
Interest/Penalties (Public): Interest at a rate of 1.5% per month.
Pay-If-Paid Permissible: Yes.
Special Notes: Prime contractor shall pay subcontractors their share of any interest received from owner.
Disclaimer: This information was published on July 1, 2020. Please contact Josh Levy, Eric Meier or Samantha Schacht for modifications made by Tennessee since that date. Visit our 50-State Construction Law Map for information on other states.