A general contractor agreement is, as the name implies, generally an agreement between the owner of real estate and a building contractor for services to manage the construction (and sometimes the design) of a residential or commercial building according to certain specifications or plans provided by the owner.

A general contractor agreement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In Tennessee, a general contractor agreement is a legally binding contract that outlines the relationship and obligations between a property owner and a general contractor hired to manage construction projects. This agreement typically includes detailed provisions regarding the scope of work, materials to be used, the hiring and management of subcontractors, payment schedules, completion timelines, insurance requirements, and the handling of mechanic's and materialmen's liens. Tennessee law requires that these agreements be clear and comprehensive to protect the interests of both parties. The state's mechanics' lien law, found in Tennessee Code Title 66, Chapter 11, provides a legal framework for contractors, subcontractors, and material suppliers to secure payment for services and materials provided. It is important for the agreement to address the filing and release of such liens to ensure proper compliance with state regulations. Additionally, contractors in Tennessee must be licensed if the total cost of the project is $25,000 or more, including materials and labor, as per the requirements of the Tennessee Board for Licensing Contractors.