# Tennessee — Construction retainage limits by US state — maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations

For Tennessee, public project retainage cap (%) is no statutory cap stated on this page; private project retainage cap (%) is no statutory cap stated on this page; release deadline is not stated on this page; escrow required is yes; milestone reduction is none, recorded from its source on 2026-08-15.

- **State:** Tennessee _(verified: appears in the quote below)_
- **Public project retainage cap (%):** no statutory cap stated on this page
- **Private project retainage cap (%):** no statutory cap stated on this page
- **Release deadline:** not stated on this page
- **Escrow required:** yes
- **Milestone reduction:** none
- **Statutory citation:** not stated on this page

## What the source says

> Some states, including Connecticut, Louisiana, Michigan, Ohio, and Tennessee, require retainage for certain state-funded public projects to be held in interest-bearing escrow accounts, providing additional security for contractors. This requirement does not typically extend to private projects, although some states, such as Tennessee and Louisiana, do mandate interest-bearing escrow accounts for private construction retainage.

## Source

- https://constructioncoverage.com/glossary/retainage

Last verified: 2026-08-15. Review by: 2027-08-15.
Part of [Construction retainage limits by US state — maximum withholding percentages, release deadlines, escrow requirements, and public vs private distinctions with statutory citations](https://referencesource.org/construction-retainage-limits-by-state/).