Who Can Assert a Mechanic's Lien in Tennessee
Tennessee mechanic lien rights run to two classes of contractors. Each has its own notice obligations and enforcement deadlines, and the rules below depend on which class the claimant falls into:
- A prime contractor, defined as a person or entity contracting directly with the property owner. T.C.A. § 66-11-101(12).
- A remote contractor, defined as a person or entity contracting with someone other than the property owner. T.C.A. § 66-11-101(14).
Private Commercial Works — Prime Contractor Notice Requirements
Tennessee law does not require the prime contractor to give the property owner any notice of its lien in order to preserve the lien. The owner is presumed to know whether it has paid the prime contractor, and the lien arises automatically when the prime contractor furnishes labor or materials for the improvement.
Three additional notices apply in specific circumstances and protect the prime contractor's rights when those circumstances arise:
- A notice of lien served on bona fide purchasers or encumbrancers for value to preserve the priority of the lien against intervening interests.
- A notice of potential lien claim served on residential property owners.
- A notice of completion.
Private Commercial Works — Remote Contractor Notice of Non-payment (T.C.A. § 66-11-145)
A remote contractor that has not been paid for labor, material, services, equipment, or machinery furnished must serve a Notice of Non-payment on both the property owner and the prime contractor. The notice must be served within 90 days of the last day of each month in which the unpaid labor, materials, services, equipment, or machinery were provided. T.C.A. § 66-11-145(a).
Service of the Notice of Non-payment is a condition precedent to the remote contractor's right to claim a lien. A remote contractor that fails to serve the notice in compliance with the statute can recover only retainage. T.C.A. § 66-11-145(b).
The Notice of Non-payment must contain each of the following items under T.C.A. §§ 66-11-145(a)(1)-(5):
- The name and address of the remote contractor.
- A general description of the work, labor, materials, services, equipment, or machinery provided.
- The amount owed as of the date of the notice.
- A statement of the last date the claimant performed work or provided labor, materials, services, equipment, or machinery related to the improvement.
- A description sufficient to identify the real property against which a lien may be claimed.
Private Commercial Works — Notice of Mechanic Lien to Owner
In addition to the Notice of Non-payment, remote contractors on commercial projects must serve a Notice of Mechanic Lien on the property owner within 90 days after the last work performed or materials supplied. If the Notice of Mechanic Lien is not served within that 90-day period, the remote contractor must record and serve the notice within 90 days after completion of the entire project. T.C.A. §§ 66-11-115, 117.
The notice must be recorded by registering a statement of the amount due for work or materials furnished with the County Register in the county where the premises (or any part thereof) are situated. The property owner may file a Notice of Completion to shorten the mechanic lien recording period to 30 days on commercial projects or 10 days on residential projects.
Private Residential Works — Contractor Notice Obligations
On residential property, only the contractor who contracts directly with the property owner has mechanic lien rights. Subcontractors and materialmen have no mechanic lien rights on residential property in Tennessee. No preliminary notice is required for the residential contractor.
The residential contractor must register within 10 days of the filing of a Notice of Completion by the property owner. T.C.A. §§ 66-11-146, 143. No mechanic lien is allowed if the contractor is not properly licensed in the jurisdiction where the work is performed.
For the contractor's mechanic lien to take priority over a mortgage, the contractor must give written notice to the mortgage holder before any work begins on the property. T.C.A. § 66-11-108. This notice requirement is critical for ensuring mechanic lien priority in disputes with lenders.
Public Works — Payment Bond Notice of Claim (T.C.A. § 12-4-205)
On public works projects with contracts exceeding $100,000, subcontractors, materialmen, and laborers are not required to serve any preliminary notice to preserve their right to claim against the payment bond. However, a Notice of Claim on Bond must be served on either the contractor who executed the bond or the appropriate public official within 90 days of project completion. T.C.A. § 12-4-205.
The Notice of Claim on Bond is a mandatory prerequisite to filing suit on the payment bond. Failure to serve this notice within the 90-day window will bar the claimant from recovering on the bond.
State Highway Projects — Sub-subcontractor and Materialman Notice (T.C.A. § 54-5-117)
On Tennessee state highway projects, sub-subcontractors and materialmen must serve written notice on the prime contractor within 90 days of their last performance of work or delivery of materials. T.C.A. § 54-5-117. This notice is required to preserve the right to make a claim against the payment bond on highway projects.
Additionally, claimants on state highway retainage funds must send notice to the Department of Transportation within 30 days after the last publication of Notice of Final Settlement with the contractor. T.C.A. § 54-5-122.
Amending a Notice of Lien
A lien claimant may amend any notice of lien required under the Tennessee mechanics' lien statute at any time during the period allowed for serving or recording the applicable notice. T.C.A. § 66-11-119(a). Any amendment must be served or recorded in the same manner as the original notice. T.C.A. § 66-11-119(b).
Waiving Mechanic Lien Rights
A claimant cannot prospectively waive its mechanic lien in Tennessee. Any contract provision purporting to waive a lien right before the right has accrued is void and unenforceable as against public policy.
Frequently Asked Questions
Do prime contractors need to send a preliminary notice in Tennessee?
No. Under Tennessee law, prime contractors who contract directly with the property owner are not required to serve any preliminary notice or other statutory notice as a precondition to asserting mechanic lien rights on either commercial or residential property. However, the prime contractor must file a Sworn Statement of Amount Due within 90 days after completion of the contract. T.C.A. §§ 66-11-112 to 117.
What is the deadline to serve a Notice of Non-Payment?
Within 90 days after the last day of each month in which labor or materials were furnished but unpaid. The clock runs separately for each month, so three months of unpaid work means three separate notices on three separate deadlines. The deadline is met if the notice is mailed by the 90th day, even if it arrives a few days later.
Who must receive the Notice of Non-Payment in Tennessee?
The property owner and the general contractor. Send to the owner of record at the address shown in the county property records, and to the GC at the address listed in the subcontract or on the recorded Notice of Commencement. On bonded projects, copying the surety is good practice even when not strictly required at this stage.
What information must the Notice of Non-Payment contain?
Under T.C.A. § 66-11-145: the claimant's name and address; the last date services or materials were provided; a general description of the work performed or materials furnished; and a description of the property improved. Omitting any required element can void the notice and forfeit lien rights for the month it covers.
How must the Notice of Non-Payment be delivered?
Certified mail with return receipt requested is the standard method. Hand delivery with notarized confirmation or a traceable commercial delivery service that provides proof of receipt is also accepted. Keep the certified mail receipt or carrier tracking record. It is the only proof the notice was sent within the 90-day window.
What happens if a remote contractor fails to send the Notice of Non-payment in Tennessee?
Failure to serve the Notice of Non-payment on the owner and contractor within 90 days after the last day of each month in which work or materials were provided is fatal to the remote contractor's mechanic lien claim for that month. T.C.A. § 66-11-145 expressly provides that failure to give this notice precludes all subsequent mechanic lien claims by the subcontractor or materialman for the unnoticed month. Tennessee courts strictly enforce this deadline; there is no good-faith exception.
Can subcontractors file a mechanic lien on residential property in Tennessee?
No. Under Tennessee law, subcontractors and materialmen who are not in privity with the property owner have no mechanic lien rights on residential property. Only the contractor who contracts directly with the residential property owner may assert a mechanic lien. This is a critical distinction from Tennessee's commercial property mechanic lien rules.
What notice is required for a public works bond claim in Tennessee?
Subcontractors, materialmen, and laborers on public projects with contracts over $100,000 must serve a Notice of Claim on Bond to either the contractor who executed the bond or the appropriate public official within 90 days of project completion. T.C.A. § 12-4-205. No preliminary notice is required before work begins.
How does the Notice of Completion affect mechanic lien deadlines in Tennessee?
When a property owner files a Notice of Completion, it shortens the time period for recording a mechanic lien. On commercial projects, the mechanic lien recording deadline is shortened to 30 days from the filing of the Notice of Completion. On residential projects, the deadline is shortened to just 10 days. Remote contractors must also give notice within 30 days of the filing of the Notice of Completion. T.C.A. §§ 66-11-143, 66-11-115, 117.
Related Tennessee Resources
Explore other critical compliance areas for Tennessee construction mechanic lien law.
Mechanic Lien Deadlines
Mechanic Lien recording requirements, Sworn Statement of Amount Due, 90-day filing deadlines, and Notice of Completion procedures
Mechanic Lien Enforcement Deadlines
Suit filing timelines, mechanic lien foreclosure deadlines, payment bond claim enforcement, and state highway project procedures
Tennessee Overview
Return to the main Tennessee construction mechanic lien law page