Tennessee

For Tennessee, payment bond threshold is all public contracts (except highways) in excess of $100,000; bond amount is Bond shall be 25 percent of the contract price on all public contracts (except highways) in excess of $100,000; claim deadline is an action shall be brought or claims so filed within six months following the completion of such public work; preliminary notice required is shall, after such labor or material is furnished and within 90 days after the completion of such public work, give written notice to either the contractor who executed the bond or the public official; statutory citation is Tennessee Code, Title 12, Chapter 4, Part 2, §§12-4-201 to 12-4-206; Title 54, Chapter 5, Part 1, 54-5-119 to 54-5-127, verified against its source on 2026-08-17.

Values marked our reading are our classification of what the source says — the source does not print them in those words. The quote below is the evidence for each one; judge it yourself.

What the source says

TENNESSEE PUBLIC CONTRACTS AND HIGHWAY PROJECTS Amount of Bond: Bond shall be 25 percent of the contract price on all public contracts (except highways) in excess of $100,000. On highway projects the amount of the bond is fixed by the Department of Transportation (DOT). Labor and Material Covered: All labor or materials used by the contractor or any remote subcontractor. Notice Required: The person furnishing labor and/or material shall, after such labor or material is furnished and within 90 days after the completion of such public work, give written notice to either the contractor who executed the bond or the public official who had charge of the letting of the contract, by return-receipt certified mail or by personal delivery. Such written notice is to set forth: (1) the nature and itemized account of the material furnished or labor done; (2) the balance due; and (3) a description of the property improved. In the case of public work undertaken by a municipality, the required notice or statement, so mailed or delivered to the mayor thereof, shall be deemed sufficient. In the case of public work by any county, the required notice or statement, so mailed or delivered to the county mayor of such county, shall be deemed sufficient. In the case of public work by the state, the required notice or statement, so mailed or delivered to the governor, shall be deemed sufficient. The statute pertaining to highway projects provides that the performance of a highway contract shall not be finally accepted until the general contractor has satisfied the DOT that all materials used by him, his subcontractors, or his agents have been paid for and until laborers and other employees working for him, his subcontractors, or his agents have been fully paid. The DOT is required to take the initiative and publish an advertisement in a newspaper in the county where the work was done 30 days prior to final settlement. Such advertisement must state the date of the proposed final settlement and notify claimants to file notice of claim with the DOT and the contractor’s surety within 30 days after publication of the last advertisement. The notice of claim must be verified by oath and filed after publication of the first advertisement. The DOT is required to withhold, for a period of 60 days after the date of the last advertisement, sufficient funds to pay all claims so filed. If a claimant brings suit against the contractor within such 60-day period, the DOT pays such retained funds into court, otherwise to the contractor. Time for Suit: On public contracts an action shall be brought or claims so filed within six months following the completion of such public work or the furnishing of such labor or materials. All actions on bonds furnished on highway projects shall be commenced within one year following publication of the first newspaper advertisement. Penalty for Failure to Take Bond: A public officer who fails to obtain the bond for a public work commits a misdemeanor and is liable in a civil action to any furnisher of labor or materials who is damaged. There is no similar provision on highway projects. Statutory Citation: Tennessee Code, Title 12, Chapter 4, Part 2, §§12-4-201 to 12-4-206; Title 54, Chapter 5, Part 1, 54-5-119 to 54-5-127.

— fullertonlaw.com, retrieved 2026-08-17

Source

• fullertonlaw.comhttps://fullertonlaw.com/50-state-summary-payment-bond-law

Last verified against source: 2026-08-17. Due for re-check by 2027-08-17. This page as Markdown · OKF bundle · full dataset as JSON.