Tennessee § 66-34-204 - Payment of retainage by owner.

§ 66-34-204. Payment of retainage by owner.

When an owner: Has received a use and/or occupancy permit for an improvement from a governmental agency lawfully issuing such permit; Has received a certificate of substantial completion from an architect or engineer charged with supervision of the construction of an improvement; or Begins to use or could have begun to use an improvement; the owner shall, after any such event and pursuant to the terms of the written contract, pay to the prime contractor all retainage the owner may have withheld pursuant to the written contract, except any sum which the owner may reasonably withhold in accordance with the written contract between the owner and the prime contractor; the retainage must be paid within ninety (90) days after the date of the occurrence of an event included in subdivision (1), (2) or (3). Acts 1991, ch. 45, § 1; 2007, ch. 201, § 5; 2020, ch. 749, § 21. Compiler's Notes. Acts 2007, ch. 201, § 7 provided that the act, which added the proviso at the end of the section, shall apply to all construction contracts to which the act applies entered into on or after July 1, 2007. Acts 2020, ch. 749, § 42 provided that the act, which amended this section, applies to actions occurring and contracts entered into, amended, or renewed on or after July 1, 2020. Amendments. The 2020 amendment inserted “or engineer” in (2); and in the last paragraph, substituted “the prime contractor” for “the contractor” and “the prime contractor; the retainage” for “the contractor, provided, however, that the retainage”. Effective Dates. Acts 2020, ch. 749, § 42. July 1, 2020.