GC Laws — Tennessee contractor-law checklist preview (free) Sources reviewed 2026-09-30. Public summaries remain free on gclaws.com. [ ] Licensing - Tennessee Commerce’s current licensing guidance applies the $25,000 threshold to prime contractors and electrical, mechanical, plumbing, HVAC and roofing subcontract portions; masonry subcontractors use a $100,000 threshold. The applicable license must cover the project classification and monetary limit. [ ] Mechanic's liens - Section 66-11-145 requires notice of unpaid furnishing to the owner and relevant prime contractor within 90 days after the last day of each month of unpaid work. The notice states claimant/contact, work, amount, last furnishing and property. Failure defeats lien rights for affected work, except the statute’s retained-performance-money exception. - That monthly nonpayment notice is separate from the owner notice of lien under §66-11-115. Under §115, the remote lien continues 90 days after service of its lien notice unless a proper enforcement suit is brought within that period. [ ] Retainage - For covered contracts, T.C.A. 66-34-103 caps retainage at 5% of the contract amount, requires owner release for completed work within 90 days after completion or substantial completion, whichever occurs first, and requires payment to subcontractors within ten days after receipt. - For contracts incorporating the 2026 TDOT Standard Specifications, §109.08 says TDOT will not withhold contractor retainage; §109.02 prohibits contractor/downstream retainage from subcontract progress payments. [ ] Prompt payment - Section 109.02 requires the contractor to pay covered subcontractors, suppliers and haulers within 30 calendar days after corresponding TDOT payment; the same prompt-payment rules extend through subcontract tiers. - The contractor documents monthly payments in AASHTOWare Project CRL; subcontractors and covered DBE/SBE material suppliers and haulers acknowledge posted payments within 14 calendar days. [ ] Prevailing wage - T.C.A. 12-4-403 requires highway contractors on covered state contracts to pay at least the prevailing rates for the work classifications. The state labor department surveys highway contractors annually to determine those rates. - Under T.C.A. 12-4-407 and 12-4-408, agencies obtain the applicable schedule before advertising for bids or contracting, include it in the specifications and contract, and require the contractor and subcontractors to pay it. [ ] Davis-Bacon (federal) - Under 40 U.S.C. section 3142, covered contracts require payment to laborers and mechanics employed directly on the site of the work at least weekly, at rates no lower than the applicable prevailing wage determination. The required compensation includes the basic hourly rate and required fringe benefits, which may be provided through qualifying benefits or cash as the statute permits. - Qualifying apprentices may receive a lower registered-program rate only when the applicable registration and program conditions are met. The Department of Labor’s apprenticeship rules govern those exceptions. - The Department of Labor determines the prevailing rates for the work classifications and locality. Contractors and subcontractors must use the wage determination applicable to their covered contract. - Federal assistance alone does not establish coverage: many, but not all, construction-assistance statutes include Davis-Bacon requirements. Identify the funding program and its governing Related Act. - SAM.gov publishes Davis-Bacon wage determinations. Search by the wage-determination number or the Davis-Bacon public-buildings-or-works category, and match the decision to the contract, locality, and work classification. This preview lists the topics and rules covered in the full state pack. The paid pack adds the complete source URLs, citations, review dates, and the three editable tools. GC Laws is owned and operated by GCExperts LLC, a Texas corporation.