Tennessee Notice of Nonpayment: A Guide for Contractors

If you’re a subcontractor or material supplier in Tennessee, you know the frustration of finishing a job and waiting for payment that never comes. Unlike a general contractor, you probably don’t have a direct contract with the property owner, which makes getting paid harder. Fortunately, Tennessee law gives you a tool to protect your right to payment: the Notice of Nonpayment.

What Is a Notice of Nonpayment?

A Notice of Nonpayment is an official document used by “remote contractors” (which include subcontractors and suppliers) to protect their ability to file a mechanics lien. Unlike a lien, which directly affects the property, this notice serves as a warning to the property owner and the general contractor that payment has not been received. If you do not serve it promptly, you may completely lose your lien rights.

Who Must Serve It?

Remote contractors must serve this notice. In Tennessee, a remote contractor is anyone who provides labor or materials under a contract with someone other than the property owner, such as a general contractor. If you have a direct contract with the owner, you are a “prime contractor” and generally do not need a Notice of Nonpayment.

When To Serve the Notice

Timing is where many contractors make mistakes. Tennessee has a unique “rolling 90‑day” requirement. You must serve the notice within ninety (90) days of the last day of each month in which you worked or supplied materials that went unpaid.

Look at the last day of the month when the work was done, not the day you sent the invoice. For example, if you worked in January but were not paid, you must serve the notice within 90 days after January 31st. If you worked in February, the deadline is tied to February 28th.

A common mistake is looking at the invoice date instead of the work date. If you worked in January but invoiced in February, your deadline is still tied to January 31st. Waiting too long can forfeit your lien rights for that month’s work.

Unlike many other states, this notice is recurring. For every month you work and do not receive full payment, you must serve a separate notice within 90 days after that month ends.

What Happens If You Miss the Deadline?

If you fail to serve the Notice of Nonpayment within the set time, you lose your lien rights for the amount owed that month. Tennessee courts strictly enforce this rule. Missing the deadline usually means your claim will be dismissed, regardless of its merits. The only exception is retainage, which remains protected even if you miss a monthly notice.

How To Serve the Notice

To protect your lien rights in Tennessee, you must deliver the Notice of Nonpayment to both the property owner and the general contractor. This Notice can be served by the following means:

• Registered or certified mail, with return receipt requested;
• Hand delivery, documented with a properly notarized sworn statement confirming receipt; or
• Any commercial delivery service that provides written proof of delivery.

Remember, this is a recurring requirement: for every month you are not fully paid, a separate notice must be sent to ensure your lien rights remain intact.

Contact Us for Legal Help

Contact our experienced Knoxville construction law attorney at Reynolds, Atkins, Brezina & Stewart, PLLC for guidance on Notices of Nonpayment, lien claims, and your legal protections.