The Law Office of Timothy H. Nichols, PLLCNashville Construction Contract Disputes Attorney | Murfreesboro Real Estate Lawyer | Business Litigation Brentwood Franklin TN2026-09-25T15:11:28Zhttps://www.tnicholslaw.com/feed/atom/WordPressOn Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[Why can a Tennessee construction lawsuit take so long?]]>https://www.tnicholslaw.com/?p=481402026-09-18T20:19:01Z2026-09-18T20:19:01ZYou signed the contract, finished the work and expected payment. Instead, you are staring down a lawsuit and wondering how long it will drag on. Many contractors and suppliers assume a construction dispute wraps up in a few weeks. In reality, the timeline often stretches from several months to well over a year, and understanding why can help you plan for what lies ahead.
Delays at the start of a lawsuit
Every construction case begins with paperwork, and that stage rarely moves quickly. Once you file a complaint, the defendant usually has 30 days to answer under Tennessee rules, though extensions are common. If your dispute involves unpaid invoices, alleged defects or a breach of warranty claim, the other side may need time to investigate before responding. These opening deadlines stack up before anyone reaches the core issues.
Time spent reviewing project records
Once the initial filings settle, both sides enter discovery, the formal process of exchanging information. Construction disputes tend to generate mountains of it. Contracts, change orders, invoices, inspection reports, emails and photographs all become evidence.Tennessee permits several discovery methods including depositions, written questions and requests for documents. Reviewing years of records from your project takes time, which is why this phase is often the longest part of a case.
Complications from multiple parties and experts
Construction projects rarely involve only two people, and lawsuits reflect that. An owner, a general contractor, several subcontractors and a material supplier may all point fingers at one another. A single suit may name you alongside several other parties, each with a separate attorney and a different account of what went wrong.Many cases also rely on expert witnesses, such as engineers or accountants, to explain technical issues or calculate damages. Coordinating these schedules and opinions naturally slows the pace.
Added time for motions and settlement talks
Along the way, attorneys file motions that ask the judge to decide specific questions before trial. A motion for summary judgment, for example, asks the court to rule that no genuine dispute of fact exists and that one side should win as a matter of law.Briefing and arguing these motions can take months. Settlement talks often run in parallel, and while a settlement can end a case sooner, negotiating a fair one still takes patience.
Court schedules that can delay a trial
Even a well-prepared case must wait for an open spot on the court's calendar. Judges juggle full dockets, and criminal matters generally take priority for scheduling. Courts slot jury trials around other hearings, and a single continuance can push your trial date back by months. Because of this congestion, reaching a courtroom is rarely as fast as parties expect.
Preparing for how long litigation may last
Knowing that a construction case can run from a few months to well over a year lets you plan instead of panic. You can budget for legal costs, keep your project records organized and set realistic expectations with your business partners.If you are facing a dispute, a useful first step is an honest conversation with a construction attorney about the likely timeline and your choices. Clear expectations put you in a stronger position to make decisions throughout the process.]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[What happens if you miss a deadline during a home closing?]]>https://www.tnicholslaw.com/?p=481412026-09-08T09:44:59Z2026-09-08T09:44:59ZCan you lose your earnest money deposit?
The earnest money deposit shows your commitment to the purchase. If you miss a deadline without notice, the seller may have grounds to keep it. Tennessee purchase agreements, including those enforced in Davidson County, outline which missed deadlines allow this. The amount varies but commonly falls between one and three percent of the purchase price, sometimes higher or lower.
What happens to the purchase agreement?
Missing a deadline does not automatically void the contract. Many Tennessee purchase agreements include a "time is of the essence" clause, which can give the seller immediate grounds to terminate and keep your earnest money. Whether that happens depends on your contract's terms – and the outcome is not always certain.
How can you protect your position?
If a closing deadline is at risk, take these steps as early as possible:
Record the key dates from your purchase agreement – including the inspection deadline, financing contingency and closing date.
Send a written notice to the seller if you need more time, and request any extension in writing before the deadline passes.
Keep copies of all lender communications, inspection reports and correspondence with the seller.
Notify the seller immediately if a condition outside your control – such as a lender delay – threatens your ability to close on time.
When a closing deadline passes in Tennessee, what happens next depends on the specific language in your purchase agreement – including whether it contains a “time is of the essence” clause and what it says about extensions and earnest money forfeiture. If a seller is threatening to terminate the deal or keep your deposit, reviewing the contract with a Tennessee real estate attorney before the dispute escalates can help you understand what rights you still have and what options remain.]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[Do you have to disclose home upgrades and additions?]]>https://www.tnicholslaw.com/?p=481392026-08-25T17:19:34Z2026-08-25T17:19:34ZHome sellers must be aware that they should disclose any material issues with the property. A potential buyer needs to know exactly what they are purchasing.
This includes things like home renovations, upgrades and even additions to the property. Maybe a homeowner decided to renovate their kitchen on their own, so they did not get any permits, but just did the work on the weekends. Another homeowner may have had an addition added to their house, putting on a sunroom or an attached garage. They did pull the permits and hired a company to build the addition.In both of these cases, those renovations likely need to be disclosed at the time of the sale. This helps buyers understand what work has been done on the property, how much that real estate is worth and what potential issues they may run into.
Were there any related defects?
Another thing to keep in mind is that sellers need to disclose any material defects, both past and present.For example, perhaps the kitchen renovation was carried out because there were significant water issues, leading the ceiling to collapse. The buyer needs to know that there were plumbing issues or roof leaks in the past, that those defects damaged the home, and that the renovations were done to repair the property after the fact.Addressing disclosures during real estate transactions is important, as is keeping records during construction projects, home renovations and the like. Those who are going through these parts of a real estate transaction need to know what legal steps to take and what obligations both parties have.
]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[How Tennessee’s prompt payment laws protect contractors]]>https://www.tnicholslaw.com/?p=481372026-08-10T09:32:15Z2026-08-10T09:32:15ZWhat Tennessee's Prompt Pay Act requires
The Prompt Pay Act sets specific deadlines for payment at every level of a construction project. On private projects, a property owner must pay you within 30 days of receiving a proper invoice. Once you receive payment as a general contractor, you must pay subcontractors within 10 days.
These deadlines apply regardless of whether the contract addresses payment timing and cannot simply be contracted away. Retainage is also capped at 5% of the total contract value, and pay-if-paid clauses require explicit and unambiguous language to be enforceable under Tennessee law.
Public projects operate under stricter timelines, with shorter windows for payment at each tier of the contracting chain.
What happens when payment is late
When a party misses the Prompt Pay Act's deadlines without a valid legal reason, mandatory interest begins to accrue on the unpaid balance. This is not discretionary. The law imposes the interest penalty automatically, giving you a concrete remedy when the other party wrongfully holds back payment.
For larger projects, the stakes are even higher. Parties who wrongfully fail to deposit retained funds into an interest-bearing escrow account face statutory civil damages of $300 per day and potential Class A misdemeanor criminal fines of $3,000 per day.
What to do when payment is wrongfully withheld
If you do not receive the payment on time, documenting your invoices, communications and the timeline of payment requests is an important first step. Prompt action matters because construction payment disputes often intersect with lien rights, which have their own strict deadlines.
A construction attorney in Tennessee can help you evaluate whether the Prompt Pay Act applies to your situation, calculate any interest penalties owed, and determine whether additional remedies such as a mechanic's lien or bond claim are available to you.
]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[A defect-related breach of contract can reduce a project’s value]]>https://www.tnicholslaw.com/?p=481352026-07-27T08:53:57Z2026-07-27T08:53:57ZA breach of contract claim is a serious allegation when it comes to construction projects. In some cases, such as when there are construction defects, it can have a dramatic impact on the value of the property, which could reduce the cost for the property owner.
For instance, imagine that a general contractor is hired to build a condominium for $200,000. They hire subcontractors to do some of the work. These subcontractors make mistakes, leading to significant defects in the property. This violates the contract because the finished product is not of the quality that the client expected.Because of these defects, the market value of the condominium drops by $50,000. As such, a customer may only have to pay the remaining $150,000. They can make a breach of contract claim so that they do not overpay for a property that immediately loses value.
When disputes arise
Naturally, a breach of contract claim can lead to many different disputes. In the aforementioned example, it could revolve around liability. Is the general contractor responsible, or is the subcontractor responsible?Disputes could also relate to the value of the property. Perhaps the contractor admits that there are defects, but also says that they only really reduced the value of that property by $10,000. They are willing to reduce the final price for the customer, but they simply think that taking $50,000 off of that price is too much for what they consider a minor error.These types of disputes can be very complex for parties on both sides. It can often help to work with an experienced construction attorney to find a resolution.
]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[Why you should not draft a contract on your own]]>https://www.tnicholslaw.com/?p=481312026-07-16T12:08:58Z2026-07-16T12:08:58ZConstruction projects in Tennessee run on contracts. These documents control your money, your timeline and your legal rights. Yet many contractors and property owners still write their own agreements or copy a generic template from the internet. As a result, this habit creates serious financial and legal risks for both contractors and property owners.
Tennessee construction law has specific rules
Tennessee imposes unique requirements on construction contracts. For instance, the state's prompt payment act sets strict deadlines for payment and retainage. In addition, Tennessee's mechanic's lien law demands precise notice language and filing timelines. If you miss these deadlines and notice rules, or break the contract rules for home improvement jobs, you could lose your right to payment or face legal penalties. Therefore, a contract that skips these details can strip you of your right to file a lien or collect payment on time. If you miss these deadlines and notice rules, or break the contract rules for home improvement jobs, you could lose your right to payment or face legal penalties.
Vague terms cause expensive disputes
Homemade contracts frequently use loose language about scope, change orders and completion dates. When a dispute erupts, courts interpret ambiguous terms against the party who drafted them. Therefore, if you wrote the contract, that rule works against you, not for you. On the other hand, clear, specific language protects both sides and prevents costly litigation.
Missing clauses leave you exposed
A well-drafted construction contract includes indemnification clauses, insurance requirements, dispute resolution procedures and force majeure provisions. However, many self-drafted contracts leave these sections out completely. Without them, you carry liability you never intended to accept. You also lose the chance to resolve disputes through arbitration or mediation instead of expensive court battles.
Licensing and permit issues create legal traps
Tennessee requires contractors to hold proper licenses for projects above certain dollar thresholds. If a contract ignores licensing status, it can become unenforceable. In fact, courts have denied payment claims to unlicensed contractors, even when the work itself met every standard. For this reason, a knowledgeable drafter checks these details before you sign anything.
An attorney protects your interests
A construction attorney understands Tennessee's statutes, case law and industry standards. Because of this expertise, they tailor contracts to your specific project instead of relying on boilerplate language. Ultimately, this investment costs far less than the legal fees and lost payments that follow a poorly written contract.Don't gamble your project on a document you found online. Instead, talk to a Tennessee construction attorney before you sign.]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[Can you fight an eminent domain order?]]>https://www.tnicholslaw.com/?p=481342026-07-15T07:28:54Z2026-07-15T07:28:54Zeminent domain exists to allow projects that are truly in the public interest to go ahead. For example, roads, hospitals or a development the area needs. However, some individuals and companies try to use it for projects that are more in their personal interest than the public's. Highlighting the lack of need for the project can sometimes lead to it being canceled altogether.
Challenging the need for your land
In many cases, the project itself is valid, but the choice of land to be taken is challengeable. Companies may propose a route that saves them money over one that reduces the impact on landowners. Rerouting or narrowing the scope of land demanded to only that which is really needed is an avenue that property owners sometimes pursue with success.
Challenging the price offered
Maybe opposing the project or the need for your piece of real estate is not likely to work. Or maybe you are not against selling up for the right price. In these cases, you may challenge the price you are being offered on the grounds that it is not fair compensation.
Eminent domains often affect more than one party, and joining with others can help strengthen your case. Whether you are one person or a multitude, experienced legal guidance can help you assess your options and decide what steps to take next.]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[Does your new property have an easement?]]>https://www.tnicholslaw.com/?p=481292026-07-02T12:53:47Z2026-07-02T12:53:46ZWhen you purchase real estate, it is important to know if there is already an existing easement. With an easement in gross, you may be able to cancel that easement or negotiate with the other property owner about whether or not it will be upheld. With an easement appurtenant, however, you often have an obligation to uphold it because it is part of the property that you purchased.
Easements can sometimes lead to real estate disputes. They should be disclosed prior to a sale, for instance, and a dispute could occur if a buyer claims they were not told that the easement existed in the first place. They can also cause issues after the sale, such as when a new owner tries to eliminate an easement and the other party claims they do not have the right to do so.
What rights go along with an easement?
Typically, an easement just gives another person the legal ability to access the land, often to use it for a specific purpose. But they are not allowed to permanently occupy that land, alter the land in a significant way or prevent the property owner themselves from using the easement.For example, if one property does not have a driveway that connects to the main road, that property owner may have an easement on an adjacent property, allowing them to cross it to reach their own land. But they are not allowed to put up gates that prevent others from accessing the land, and they could not build permanent structures, like a garage. All they can do is use the shared driveway responsibly to gain the access that they need.In some cases, disputes over easements revolve around improper use, and these types of real estate conflicts can grow very complicated. Those involved need to know what legal options they have and how the law applies in their unique case.]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[What is scope creep?]]>https://www.tnicholslaw.com/?p=481252026-06-18T11:35:55Z2026-06-18T11:35:55ZIn the construction industry, scope creep is an issue where the project continues to grow and become more complicated. It often relates to budgets and deadlines. A construction company may start missing key deadlines, or the budget may grow out of control due to changes in the project.In some cases, this happens because there is no detailed plan to begin with or because there are unexpected changes once the project begins. Say that a construction company is hired to renovate a property, and it seems like a fairly straightforward job. But once they begin the demolition process, they discover that there are structural issues and old water damage. Suddenly, significant structural repairs become necessary, and the budget for the project spirals out of control.
Miscommunication can lead to legal issues
Communication problems can also lead to scope creep. Sometimes it is miscommunication, where the client and the construction company owner are never on the same page about what either one expects. They both feel like they are working on fundamentally different projects.In some cases, clients also do not understand how their requests are changing the project. Maybe the property owner is very hands-on and keeps requesting revisions or alterations. But then, when they get the bill, they are shocked by how much the project costs and how it appears to have gone over budget. Or all of the changes add a significant amount of additional work, so the project is not done by the deadline.In cases like these, disputes can sometimes occur, potentially leading to litigation between construction companies, subcontractors, clients and other entities involved in the project. For those who find themselves in this position, it is important to know what legal steps to take.]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[What you need to know about enforcing a construction lien]]>https://www.tnicholslaw.com/?p=481242026-06-08T10:45:04Z2026-06-08T10:45:04ZGetting paid on a construction project is not always as straightforward as completing the work and sending an invoice. Payment disputes can escalate quickly, especially when funds are withheld without clear justification or when project owners and contractors disagree on the scope or quality of work performed.
In such situations, filing a construction lien can become one of the most powerful tools available to protect your right to payment. However, enforcement isn’t automatic. A lien that sits without action expires, alongside your right to payment.
How enforcement works
Once filed, a lien places a legal cloud on the property title, but that alone does not automatically result in payment. To recover what you are owed, you must take additional legal action by filing a lawsuit to enforce the lien, usually in the county where the property is located. In essence, you are asking the court to recognize your claim and, if necessary, authorize the sale of the property to satisfy the unpaid debt. The process is governed by strict deadlines and legal procedures that you must adhere to. Otherwise, you risk losing the ability to enforce your lien rights.
Don’t let a valid claim die on a technicality
Construction lien law rewards those who act quickly and precisely. The contractors who lose enforceable claims don't usually lose them because their work was defective; they lose them because a deadline slipped or a procedural step was missed. It’s also worth noting that many lien disputes are resolved before reaching full enforcement. However, it is important to be prepared for escalation if necessary. If you've filed a lien and the payment dispute isn't resolving, reach out for urgent legal guidance to understand your options and take informed action to protect your interests.
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