Liens, Payment Bonds, and Payment Provisions
Mechanics liens on private work
A lien attaches to the improved real property when labor, materials, or equipment are furnished. In Tennessee the prime contractor's lien relates back to the commencement of the improvement, giving it priority over later-recorded mortgages; this is why lenders monitor lien waivers closely.
Timing: a prime contractor must record its lien within 90 days after the last day of the month in which the contract was completed or terminated. A remote contractor (one not in privity with the owner) must serve a Notice of Nonpayment on the owner and prime contractor, generally within 90 days after the last day of the month in which it last furnished, and then record the lien within the window that follows. A sworn statement of the amount due accompanies the lien, and an enforcement action must be filed within the statutory period after recording or the lien is lost.
Public work and payment bonds
Public property cannot be liened, so the Little Miller Act substitutes a payment bond on state and local public works above the statutory threshold. A claimant without a direct contract with the prime must typically give written notice of the claim within 90 days after last furnishing, then sue on the bond within the statutory period.
Payment provisions
Tennessee's prompt payment statutes impose deadlines for paying contractors and subcontractors and cap retainage at 5 percent. Lien waivers - conditional on payment, unconditional on payment, partial, and final - are the currency of progress payments.
Trap
Filing the lien on time but skipping the Notice of Nonpayment, or signing an unconditional waiver before the check clears.
Rule of thumb
Written notice within 90 days is the recurring number across liens and bonds; memorize it and apply it before you rely on the calendar.