Tennessee Mechanic Lien Enforcement Deadlines

Prime Contractor — Suit Filing Deadline (T.C.A. § 66-11-106)

A prime contractor must file an action to enforce its lien within one year after completing the improvement to the real property, unless the property owner or its agent delivers a written demand for enforcement action that triggers a shorter window. The lien continues in effect until a final decision is rendered in the enforcement proceeding. T.C.A. § 66-11-106.

The one-year clock runs from the date of completion of the contract, not from the date the mechanic lien was recorded. Failure to file suit within the statutory period extinguishes the mechanic lien by operation of law.

Remote Contractor — Suit Filing Deadline on Commercial Property

A remote contractor must file an action to enforce its lien within 90 days after serving and recording its notice of lien. T.C.A. § 66-11-115(2)(b). This is a significantly shorter enforcement window than the one-year period afforded to prime contractors, and the 90-day clock runs from the date the notice of lien is served and recorded, not from the date of last furnishing or project completion.

A lien claim expires by operation of law if the statutory requirements for perfecting the lien are not met. C.O. Christian & Sons Co., Inc. v. Nashville P.S. Hotel Ltd., 765 S.W.2d 754, 758 (Tenn. Ct. App. 1988). Remote contractors should be prepared to initiate litigation promptly after recording the mechanic lien.

Owner or Prime Contractor Demand for Enforcement Action (T.C.A. § 66-11-130)

The property owner, its agent, or the prime contractor may shorten a remote contractor's enforcement window by serving a written demand requiring the lien claimant to commence an action to enforce its lien. The demand must describe the real property. After service of the demand, the remote contractor has 60 days to commence proceedings or the lien is forfeited by operation of law. T.C.A. § 66-11-130.

The written demand must be served by one of the following methods under T.C.A. §§ 66-11-149(c)(1)-(3):

• Registered or certified mail, return receipt requested.
• Hand delivery, evidenced by a sworn statement, properly notarized, confirming delivery.
• Any other commercial delivery service that provides confirmation of delivery.

Residential Contractor — Suit Filing Deadline (T.C.A. § 66-11-106)

A residential contractor must file suit to enforce the mechanic lien within one year after last furnishing labor or materials on the project. T.C.A. § 66-11-106. This deadline runs from the date of the contractor's last furnishing, which may differ from the date of project completion.

As with all Tennessee mechanic lien enforcement deadlines, failure to commence suit within the statutory period will result in the loss of all mechanic lien enforcement rights. Residential contractors should also ensure they are properly licensed, as an unlicensed contractor has no mechanic lien rights on residential property under Tennessee law.

Public Works — Payment Bond Suit Deadline (T.C.A. § 12-4-206)

On public works projects with contracts exceeding $100,000, a claimant who has served the required Notice of Claim on Bond must file suit on the payment bond within six months of completion of the project. T.C.A. § 12-4-206. The six-month period is measured from the date of project completion, not from the date the notice was served.

This relatively short enforcement window requires claimants to act expeditiously after project completion. Bond claims that are not pursued within six months are time-barred and cannot be recovered regardless of their merit.

State Highway Projects — Bond Claim Suit Deadlines

On Tennessee state highway projects, sub-subcontractors and materialmen must file suit on the payment bond within six months of project acceptance by the state. T.C.A. § 54-5-119. This deadline runs from the date of official acceptance, which may occur some time after physical completion of the work.

For claims against retainage funds on state highway projects, the claimant must file suit within 60 days of the last advertising of the Notice of Final Settlement. T.C.A. § 54-5-123. The claimant must also have sent notice to the Department of Transportation within 30 days after the last publication of that Notice of Final Settlement. T.C.A. § 54-5-122.

Summary of Tennessee Enforcement Deadlines by Claimant Type

The following is a summary of the key enforcement deadlines for each type of claimant under Tennessee law:

• Prime Contractor (Commercial): Suit within 1 year after completion of work. T.C.A. § 66-11-106.
• Remote Contractor (Commercial): Suit within 90 days after serving and recording the notice of lien. T.C.A. § 66-11-115(2)(b).
• Residential Contractor: Suit within 1 year after last furnishing labor or materials. T.C.A. § 66-11-106.
• Owner/Prime Contractor Written Demand: 60 days from service of demand for the remote contractor to commence enforcement, or the lien is forfeited. T.C.A. § 66-11-130.
• Public Works Bond Claimant: Suit within 6 months of project completion. T.C.A. § 12-4-206.
• State Highway Bond Claimant: Suit within 6 months of project acceptance. T.C.A. § 54-5-119.
• State Highway Retainage Claimant: Suit within 60 days of last advertising. T.C.A. § 54-5-123.