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What "notice" language must I include in my contracts as a GC in TN?

We noticed the state requirements for residential GCs in Tennessee just changed as of July 1. We are looking at updating our contracts to include the "notice" language you mention in your FAQs. Is there specific verbiage that must be included? Can you provide any examples or best practices?

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Jul 13, 2020

TN Home Improvement Contract Required Language

Under Tennessee law, the notice language required to be included for owner-occupied, residential projects has not been changed by the new amendments. The required language (which isn't particularly extensive) can be found under Tenn. Code §62-6-508. Which requires (among other things) that the contract include the specific following statement above the owner's signature line: "NOTICE TO OWNER: Do not sign this contract if blank. You are entitled to a copy of the contract at the time you sign." The only other required statement is a brief notice that informs the owner that all home improvement contractors must be licensed by the Board and any inquiries should be transmitted to the TN Board for Licensing Contractors. There is no explicit language required for this section.

Preliminary TN Notice to Owner Language

The changed notice language you are referring to involves the TN Notice to Owner under §66-11-203, which is required from prime contractors prior to the commencement of work. This updated language at the beginning of the notice should now read: Delivered this ________ day of ____, 20_____, by _____________________, Contractor, "The above-captioned contractor hereby gives notice to the owner of the property being improved, that the contractor is about to begin improving the property according to the terms and conditions of the contract and that under the provisions of state law (§§66-11-101 - 66-11-141) there shall be a lien upon the real property and building for the improvements made in favor of the above-mentioned contractor who does the work or furnishes the materials for such improvements for a duration of one (1) year after the work is finished or materials furnished." For a full breakdown of these changes, see: Tennessee Enacts New Notice, Retainage, and Prompt Payment Rules

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