Construction Industry Payment Protection Act Passes House, Moves to Governor Lee's Desk

At ABC Greater Tennessee, one of our main areas of focus is advocating for responsible legislation to protect our industry when payments are not made. Our industry has made positive changes to the laws of Tennessee as they relate to construction; however, many of these laws left some unintended contradictions, ambiguities, and loopholes that needed to be rectified.

Over the past two years, ABC Greater Tennessee has been working with our industry partners including the American Subcontractors Association, ABC West Tennessee, AGC, AGC East Tennessee, AIA, American Council of Engineering Companies, NSPE, Tennessee Bar Association, Tennessee Bankers Association, and the State of Tennessee to craft legislation suitable to all parties.

With this letter, we are proud to announce that the legislation has now passed the House 26-0 and the Senate of the State of Tennessee 96-0 and is currently awaiting the Governor’s signature to be adopted into law.

We would like to thank all of the associations that were involved in this effort as well as our bill sponsors: Senator Paul Rose, Senate Majority Leader Jack Johnson, and House Assistant Majority Leader Representative Ron Gant. Without their support, guidance, and leadership, this would not have been possible. 

We also want to send a very special thank you to Wally Irvin with Lewis, Thomason, King, Kreig, and Waldrop for his countless hours of involvement in drafting the language for this bill. Below is a link to the summary of the changes that were made in the bill. In addition to the short white paper, ABC Greater Tennessee anticipates having Mr. Irvin to speak to the membership in more detail about the new law and how it will affect everyone in the construction industry.


Clay Parkes
2020 Chairman
ABC Greater Tennessee