The House Commerce Committee is slated to take up the American Subcontractor Association's (ASA) HB 271(SB 324) in the Tennessee General Assembly House Commerce Committee as early as this week. As you may know, this legislation will significantly change procedure on construction contracts and lien rights on Tennessee construction projects. 

While fairness in contracts is important to the industry as a whole, this bill has far reaching consequences if not drafted correctly.

ABC- Greater Tennessee’s Legislative Committee, which represents General Contractors as well as Subcontractors, does not believe that ill-drafted, unworkable legislation that affects one of the state's biggest industries should be ramrodded through the state legislature without proper involvement and feedback from the industry itself. This legislation, if not redrafted, could be detrimental to the industry due to its ambiguous wording and method of employing the principals in the bill.
ABC has been working with other industry associations to force a conversation on this legislation to allow for proper consideration of our entire industry. Attempting to represent the industry as a whole, we have been willing to accept an open and honest dialogue on modifications to the bill. To date, we have had no progress on a mutual and honest agreement with ASA. We are hopeful that an open line of communication will prevail. In the meantime, we, the ABC, will continue to be a fair and honest advocate of the industry as a whole, representing both general contractors and subcontractors. Your membership and support will continue to help us to pass workable legislation that benefits the entire industry in East and Middle Tennessee.  

Position Statement: Founded on the Merit Shop Philosophy, ABC- Greater Tennessee prides itself on protecting free enterprise, advocating for open and fair competition, and promoting economically sound principles upon which America was built. The manner in which these bills have proceeded through the legislation violates those principles and could act to stifle economic growth within the industry moving forward if not drafted properly, thus ABC- Greater Tennessee OPPOSES these pieces of legislation as they are currently drafted and urge the legislature to move the legislation to Summer Study for consideration next year.