Tennessee Contractor License Exam — All Questions
3 questions
Under Tennessee's mechanics' and materialmen's lien law, a prime (general) contractor who contracts directly with the owner generally must enforce the lien by filing suit within what period after the work is completed?
- a.Within one year after completion of the work✓
- b.Within 30 days after completion
- c.Within five years after completion
- d.There is no time limit once work stops
A prime contractor's lien in Tennessee continues for one year after the work is completed or abandoned, and suit to enforce it must be filed within that year. Missing the one-year deadline extinguishes the lien, leaving only ordinary contract remedies.T.C.A. §66-11-106, §66-11-115 (prime contractor's lien)
Two chains of work must both finish before final inspection. Chain A totals 4 + 6 + 5 = 15 days; Chain B totals 4 + 3 + 3 = 10 days. How much float does Chain B carry?
- a.0 days
- b.10 days
- c.5 days✓
- d.15 days
Chain A is the longer (critical) path at 15 days; Chain B totals 10 days. Float on the non-critical chain equals the difference: 15 - 10 = 5 days. Chain B can slip up to five days before it would delay completion.CPM scheduling (float = critical path duration - path duration)
On Tennessee construction contracts, the amount of retainage that may be withheld from progress payments is capped by statute at what percentage, and the retained funds must be deposited where?
- a.10%, held by the owner
- b.5%, deposited into a separate, interest-bearing escrow account✓
- c.15%, held by the general contractor
- d.There is no cap; the contract controls
Tennessee caps retainage at 5% of the amount of each progress payment and requires the retained funds to be deposited into a separate, interest-bearing escrow account. The cap protects the contractor's cash flow, and improper withholding carries penalties.T.C.A. §66-34-104 (retainage cap and escrow)