Tennessee Court of Appeals Clarifies Subcontractor’s Rights to Recovery of $300/day Penalty for Contractor’s Violation of Prompt Pay Act Requirement to Place Retainage in Escrow Account0

• Best Practices, Claims, Construction in the Courts, Contracts
• February 24, 2020

By J. Timothy Crenshaw, Counsel, Schulman, LeRoy & Bennett, P.C. The recent decision in Snake Steel, Inc. v. Holladay Construction Group, LLC is significant for subcontractors’ rights with respect to retainage withheld on construction projects in Tennessee. Tennessee’s Prompt Pay Act (the “PPA”) includes a provision requiring that retainage withheld on projects involving $500,000 or