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
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
Workers Compensation and Construction Sites
Workers’ Compensation and Construction Sites: Bureau intends to conduct field inspections of construction sites Contractors, subcontractors and providers of “construction services” in Tennessee face heightened scrutiny for compliance with Tennessee’s workers’ compensation laws, and potential penalties for failure to maintain adequate proof of workers’ compensation insurance at job sites. Under new legislation passed by the Tennessee legislature in the 2017 … Read More
Tennessee Contractor License Legislative Update
Tennessee contractors should be aware of a couple of upcoming changes to the Tennessee contractor license laws. House Bill 0906 / Senate Bill 0355 passed unanimously yesterday. Audited and Attested Financial Statements Currently, an applicant requesting a Tennessee contractor license with monetary limits of $1.5 million or greater is required to submit financial statements that are audited and attested to by … 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
Executive Order Creates Temporary License Exam Waiver
In response to the recent wildfires that swept through Gatlinburg and surrounding areas in east Tennessee, Governor Haslam issued Executive Order No. 61. The Order permits a temporary contractor’s license to be issued to provide for the protection of the health, safety and welfare of the public. Qualified contractors may apply for an examination waiver for a temporary six (6) … Read More
Contractors, did you know . . . ?
The Tennessee Board for Licensing Contractors has statutory authority to impose civil penalties for violations of statutes, rules, or orders enforceable by the Board. Orders of the Board are often based on a finding of misconduct. Did you know that failure to abide by a warranty agreement is an enumerated form of misconduct. So is the failure to respond to … Read More
CHANGE IS IN THE AIR: State to Pilot “Expertise Based” Procurement
On August 15, the State of Tennessee Real Estate Asset Management Division (STREAM) held a educational session on a new expertise-based procurement approach it intends to pilot on select future projects within the Capital Projects Group. The presentation was led by John Savicky, with the Arizona State University Performance Based Studies Research Group. In contrast to traditional competitive bidding, the … Read More
Ready. Set. Go Build!
Construction is booming in Nashville. If there is any doubt, simply look at the Nashville Business Journal’s “Crane Watch.” Construction of smart buildings are also easier now thanks to the advancements in technology. One of them is Digital twins for cities that helps builders design and conceptualize large-scale projects. Despite vast amount of new construction, contractors continue to struggle to find … Read More