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ARTICLE · 13 AUGUST 2020

Tennessee Construction Legislative Updates

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The Tennessee legislature recently passed the Construction Industry Payment Protection Act ("CIPPA"), SB2681/HB2706, which offers significant changes to the Tennessee construction industry.

United StatesReal Estate and Construction
Kathryn K. Van Namen
Kathryn K. Van Namen
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The Tennessee legislature recently passed the Construction Industry Payment Protection Act ("CIPPA"), SB2681/HB2706, which offers significant changes to the Tennessee construction industry.

Not only does the act amend Tennessee's existing lien laws and construction defect statutes, including the statute of repose for construction and design defect actions, but it also impacts the Prompt Pay Act and the Truth in Construction Act. This is the first of a series addressing the changes and the legislature's efforts to provide consistency and clarity in Tennessee construction law.

Effective July 1, 2020

Because these changes became effective July 1, 2020 and apply "to actions occurring and contracts entered into, amended, or renewed on or after" July 1, it's important to consider the potential impact on any ongoing projects or amendments, contract renewals, or contract revisions, including change orders, after July 1, 2020.

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