Yesterday, Tennessee passed the Construction Industry Payment Protection Act (CIPPA) (SB2681/HB2706), which brings broad amendments to Tennessee’s lien laws, the Truth in Construction Act, the Prompt Pay Act, and Construction Defect statutes. Despite a shortened session that focused primarily on the budget and COVID-19 related bills, the legislature took time to pass amendments sought by a unified coalition across the … Read More
THE TIMES THEY ARE A CHANGIN’ – CONTINGENT PAYMENT AND LIENS IN TENNESSEE
Come senators, congressmen please heed the call Don’t stand in the doorway don’t block up the hall For he that gets hurt will be he who has stalled There’s a battle outside and it is ragin’. It’ll soon shake your windows and rattle your walls For the times they are a-changin’. -Bob Dylan- A battle is raging in Tennessee as Senator … Read More
LT Knoxville Construction Law Seminar 2018
This year our seminar is titled Construction: On And Off The Field, and will be held in Knoxville on August 17th at the Fox Den Country Club. This seminar is aimed at offering practical advice for all parties involved in the construction business from a legal viewpoint. All that concerns the legal aspects of the business is filed in this title … Read More
Construction Defects and the Importance of Preserving the “Scene”
In construction defect claims, failure to preserve the “scene” can be fatal to either a valid claim or a strong defense. Indeed, when a defect or failure is discovered, it is important to do two things, as soon as possible: (1) secure the “scene” and related items and documents; and (2) notify any individuals or entities that may be involved … Read More
Getting Paid on Tennessee Public Projects: the “Little Miller Act”
Like many states, Tennessee law requires that a contractor performing work on a state or local project having a contract price of $100,000 or more to post a bond to secure the contractor’s payment for all the labor and materials used by the contractor, or any immediate or remote subcontractor under the contractor. T.C.A. §12-4-201. The purpose of the bond … Read More
Statute of Repose and Insurance Company Construction Projects
A contractor’s “preferred contractor” relationship with an insurance company does not necessarily mean the insurance company can recover under a breach of contract theory when it seeks relief in subrogation from the contractor for faulty work. Such a claim has to be clearly specified as a breach of contract in the insurance company’s complaint. Recently in Tennessee Farmers Mutual Insurance … Read More
Tennessee Court of Appeals: Specific mention of “fees” required to enforce attorney’s fee provision
It has long been understood in Tennessee that in order to recover attorney’s fees in an action for breach of contract that the contract to be enforced must specifically provide for the recovery of motorcycle accident attorney’s fees in the event of an action to enforce the contract (absent some applicable statute providing for attorney’s fees in certain instances). However, … Read More
Contracting in Tennessee – 5 Simple Tips
It never ceases to amaze how contractors, particularly those based out of state, run afoul of Tennessee laws. As 2017 progresses, here are few laws that should be kept in mind. Are You Licensed? – A Contractor’s license is required prior to contracting. In Tennessee, “contracting” includes bidding, offering to engage, or negotiating a price for projects of $25,000 or … Read More
The Business of Construction: Payment Disputes
The construction industry includes not only completing the project, or fulfilling an order, but also handling the “business” side of the industry. Oftentimes, this “business” side involves payment disputes, including disputes over invoices or payments. One common payment dispute situation involves a party disputing an invoice attempting to satisfy the obligation with a payment for less than the amount shown … Read More
I Protest! – Government Bid Protest Battles
I have had occasion to work with a number of clients confronted with bad outcomes in a government procurement process. The disputes have involved state, local and University of Tennessee procurements. Although each dispute involved unique issues, some elements are common to any bid protest. Grounds to Protest? The protestor carries the burden of establishing that the procurement agency’s decision … Read More