Like many states, Tennessee law requires that a contractor performing work on a state or local project having a contract price of $100,000 or more to post a bond to secure the contractor’s payment for all the labor and materials used by the contractor, or any immediate or remote subcontractor under the contractor. T.C.A. §12-4-201. The purpose of the bond … Read More
Robots in the Construction Industry: Robots and automation arrive on construction sites
While most of modern commerce and our daily lives have seen a dramatic increase in the use of automation and/or robots, construction sites have been one area where robots were slow to arrive. However, that does not appear to be the case any longer. A recent article published by the Associated Press highlighted the trend toward robotics and automation at … Read More
“Pay that man his money,” or don’t. Contingent Payment in Tennessee for Subcontractors
The payment term is the most important provision of any subcontract. Subcontractors are not typically advanced money at the start of their work, requiring them to front the cost of construction based on the contractor’s contractual obligation to pay. But, a subcontractor must insure the contractor’s payment obligation is not illusory. Pay-if-paid and pay-when-paid provisions are frequently misunderstood. A pay-if-paid … Read More
Tennessee Court of Appeals: Specific mention of “fees” required to enforce attorney’s fee provision
It has long been understood in Tennessee that in order to recover attorney’s fees in an action for breach of contract that the contract to be enforced must specifically provide for the recovery of motorcycle accident attorney’s fees in the event of an action to enforce the contract (absent some applicable statute providing for attorney’s fees in certain instances). However, … Read More
Workers Compensation and Construction Sites
Workers’ Compensation and Construction Sites: Bureau intends to conduct field inspections of construction sites Contractors, subcontractors and providers of “construction services” in Tennessee face heightened scrutiny for compliance with Tennessee’s workers’ compensation laws, and potential penalties for failure to maintain adequate proof of workers’ compensation insurance at job sites. Under new legislation passed by the Tennessee legislature in the 2017 … Read More
New Form I-9 Employment Eligibility Verification
Attention!: Contractors, subcontractors, architects, engineers, material suppliers, owners, anyone with employees. The United States Citizenship and Immigration Services released a revised version of the Form I-9, Employment Eligibility Verification on 17 July 2017. Employers may continue to use the old version of Form I-9 until tomorrow. However, starting on Monday, 18 September 2017, all employers must use the new version … Read More
Contracting in Tennessee – 5 Simple Tips
It never ceases to amaze how contractors, particularly those based out of state, run afoul of Tennessee laws. As 2017 progresses, here are few laws that should be kept in mind. Are You Licensed? – A Contractor’s license is required prior to contracting. In Tennessee, “contracting” includes bidding, offering to engage, or negotiating a price for projects of $25,000 or … Read More
The Business of Construction: Payment Disputes
The construction industry includes not only completing the project, or fulfilling an order, but also handling the “business” side of the industry. Oftentimes, this “business” side involves payment disputes, including disputes over invoices or payments. One common payment dispute situation involves a party disputing an invoice attempting to satisfy the obligation with a payment for less than the amount shown … Read More
OSHA and Intoxicated Workers
Is the intoxicated worker’s injury exempt from reporting ?. . . No! In a March 21, 2016 letter of interpretation, OSHA determined that an intoxicated worker’s injury is not exempt from reporting under the work-related exception in Section 1904.5(b)(2)(vi). According to a personal injury attorney, section 1904.5(b)(2)(vi) states “You are not required to record injuries and illnesses if the injury … Read More
BACK TO BASICS: TENNESSEE LIEN LAW PART 4
In a continuing four-part series, LT Construction Lawyer Wally Irvin discusses the Tennessee Lien Law. Wally recently posted Part 1 of 4 on “Speaking the Lien Language,” Part 2 of 4 on “Lien on What?” Wally continues his examination of the Tennessee lien law, and Part 3 of 4 on “”Notice Requirements.” Wally completes his examination of the Tennessee lien … Read More