Board for Licensing Contractors
FAQs - Frequently Asked Questions
The following questions and answers apply to all professions within the Board (Contractors; Home Improvement; Limited Licensed Electricians; and Limited Licensed Plumbers). To quickly find the subject, you may enter both "Ctrl F" on your keyboard, at the same time; then enter part of the subject to search, such as "Renewal" and this will highlight section to make it easier to find.
Becoming Licensed
Who is required to be licensed?
Is a homeowner permitted to build his/her own house without a license?
Is a company (or owner) permitted to build its own office without a contractor’s license?
Is it legal for a church to construct its building?
How long will it take to process my application?
License Types
Home Improvement Licenses
Home Improvement – How to Obtain
Limited Licensed Electrician (LLE)
Limited Licensed Plumber (LLP)
Fire Protection – Fire Sprinkler Systems
Felony Conviction/ Judgements/Disclosure
Examination Information
Are examinations required to obtain a license?
How do I apply for licensing exam?
Are licensing exams available online?
May I take the exam without signing up in advance?
Do I have to be preapproved to take a trade exam prior to registering with PSI?
Can more than one (1) exam be taken in a day?
Are cram schools permitted for exam preparation?
I passed my exam, what do I do next?
I have a Tennessee license and need to apply for a license in another state
Retesting - Are old exam results acceptable? How recent must they be?
Is continuing education required
May the person taking the exam (qualifying agent) be listed or designated on more than one license?
Is the qualifying agent considered the owner of the license?
Changes in License Status - Renewal (All License Programs)
How do I renew a license?
How far in advance of expiration date should my renewal be completed?
I let my license expire. How do I have it reinstated?
How do I reactivate my retired license?
May I change my license to inactive status?
I recently updated my status. Why hasn’t my status changed online?
Complaints
How do I file a complaint against a company/individual?
What can the state do if I have a legitimate grievance?
Are there consumer tips for hiring a contractor?
Where can the implied (one-year) warranty law be found?
Change of Address/Other Key Information
Am I required to notify the board if I change my address?
Can I change my information online?
Miscellaneous - Questions and Answers
How may I check or search if someone is licensed?
Am I required to notify the board if my job status changes?
How can I get the forms I need?
How do I know when and where regulatory boards meet?
Does this board have a newsletter to which I can subscribe?
Is a license required before bidding? How long does it take to get a license?
Is the qualifying agent considered the owner of the license?
Are subcontractors required to be licensed?
Are HVAC contractors regulated by the Board for projects less than $25,000?
Does the Board accept credit cards online?
Are contractors required to appear for a personal interview order to obtain a license?
What is the deadline date to submit an application for the next scheduled board meeting?
What if I need a license prior to the next Board meeting or missed the deadline?
If my corporation or LLC is in another state, will I need to register in Tennessee?
Are there specific bidding requirements?
May a contractor bid in another name other than as licensed?
I am a licensed contractor; why haven’t I received a roster?
How can a contractor get on the State of Tennessee’s list to bid state government contracts?
Do all contractors have to be licensed in order to joint venture?
Can a contractor bid in excess of their monetary limit?
May I transfer my license to another company?
Who is in charge of electrical inspections for the LLE license?
Are fire sprinkler contractors required to be registered in addition to having a contractor license?
Are there requirements for Alarm System Contractors?
How can you check the complaint history of a contractor?
Where may I obtain a list of the contractor license laws and regulations?
Is a state contractor license required to build on federal projects?
Are there special provisions for those in the military?
What is the penalty for bidding without a license?
Becoming Licensed
Who is required to be licensed?
The Board regulates several state license professions, such as: Contractors; Home Improvement; Limited Licensed Electricians (LLE); and Limited Licensed Plumbers (LLP). Licensing requirements depend on the total dollar amount of the project, and for professions performing work less than $25,000, the county where the work is performed determines whether to obtain a state license. For Contractors, there are various types (see "Contractor Classifications Outline") and a license is required when the total cost or contract amount is $25,000 or more, as a "prime" (general), defined as one contracting directly with the owner and not a licensed contractor. A "Contractor's" license is required with the appropriate classification and monetary limit. For example, a contractor building a house would need a BC-A (residential) classification and a monetary limit to cover the total contract. A "subcontractor" (one contracting directly with the prime contractor and not the owner) is required to be licensed as a "Contractor" for projects $25,000 or more for only the the following types: Electrical (CE); Plumbing (CMC-A); HVAC (CMC-C); or Mechanical (CMC); and also for Masonry (LMC) subcontractors when the amount is $100,000 or more. If performing work less than $25,000, check with the local government (or see list below for our other regulated professions). A license is required prior to offering to engage. Other examples from the "Contractor Classifications Outlines" of the types of prime contractors are as follows: Excavation (BC-28); Commercial Building (BC or BC-B); Landscaping (BC-29); S-Solar Panel Installation; S-Telecommunications; S-Audio Visual Equipment; etc.
A Tennessee state license is required before bidding, contracting or offering a price. An out-of-state license is not acceptable. A local or state "Business" license does not fulfill all license requirements.
The following state licenses are regulated by the Contractor's Board:
- Contractor ($25,000 and up) License requirements
- Subcontractors ($25,000 and up) See Contractor License requirements
- Home Improvement ($3,000 to $24,999) License requirements
- Limited Licensed Electrician (LLE) (Less than $25,000) License requirements
- Limited Licensed Plumber (LLP) (Less than $25,000) License requirements
- Pre-licensed exam course providers (workshops and online) License requirements
- Medical Gas Training Providers License requirements
HVAC - There is not a state license with our Board for projects less than $25,000.
Other -Also check Regulatory Boards and Fire Prevention and Local Government and Business information to ensure all appropriate licenses are obtained.
Note: Contractor's - See "License Classification Outline" for the different types of prime (general) and subcontractors. Effective July 1, 2010, masonry subcontractors are required to be licensed as subcontractors performing work in the amount of $100,000 or more.
Is a homeowner permitted to build his/her own house without a license?
Yes. A person who owns property is allowed one permit every two years to build their home as long as it is not for sale, lease or rent (individual use). If they hire a contractor, the contractor is considered a "prime" and required to be licensed, as well as, obtain the building permit for inspections. (TCA 62-6-103 and Rule 0680-1-.22) See "Laws, Rules and Regulations" link from our website.
A homeowner should never obtain the permit on behalf of the contractor, as this relieves the contractor from most liability and insurance requirements. In addition, the contracts should not be split into phases to circumvent the law. Anyone who is paid in excess of $25,000 by the owner is considered a prime and required to be licensed. Please see Consumer Resources for tips and for further information.
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Is a company (or owner) permitted to build its own office without a contractor’s license?
No. If the building will be open to the public, it is not considered for individual use and a commercial (BC-BC-B) contractor license classification is required if the total cost is $25,000 or more. The project cannot be split into phases/portions to circumvent the law. There are exemptions if the structure is not open to the public, or for sale, lease, or rent. See (TCA 62-6-103 and Rule 0680-1-.22) "Laws, Rules and Regulations" link from our website.
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Is it legal for a church to construct its building?
No. For safety and liability reasons, the law does not exempt a church or any other entity to build a structure open to the public.
State law states any person, firm, or church is required to hire a licensed contractor with the appropriate license classification and monetary limit in order to construct a building in excess of $25,000 because it is open to the public and not for individual use. The contracts/permits should not be split into phases to circumvent the law. A contractor with a commercial (BC or BC-B) classification and appropriate monetary limit, would be required. See (TCA 62-6-103 and Rule 0680-1-.22) "Laws, Rules and Regulations" link from our website.
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How long will it take to process my application?
The following are approximate timelines on processing license applications received by our office, where all information is complete:
Contractors – Six (6) weeks
- Applications require full approval of the Tennessee Board for Licensing Contractors.
- The Board meets during the months of January, March, May, July, September, and November. (Calendar). Some applicants are required to attend the meeting for to be interviewed (see application instructions).
- Deadline date to submit application is the 20th of the month prior to the Board meeting.
- Prior to submitting the application, applicants must fulfill exam requirements and hire a CPA to prepare a financial statement.
- Hardship Requests: Applicants who have provided a hardship letter from the owner may obtain a license within 10 days. (Hardship criteria)
- Exam requirement: Business and Law and Applicable Trade.
Home Improvement – Approximately two (2) to four (4) weeks
- Does not require Board approval unless there are felony convictions, complaints, or application discrepancies.
- Applications are processed in order received; no deadline date unless reviewed by the Board (see Calendar)
- No exam required.
Limited Licensed Electrician – Approximately two (2) weeks
- Does not require Board approval, unless there is a request to waive the trade exam for a reinstatement or there are felony convictions, complaints, or application discrepancies.
- Applications are processed in order received, with no deadline date, unless it needs board review.
- LLE exam is required.
Limited Licensed Plumber (LLP) - Approximately two (2) weeks
- Does not require Board approval unless there is a request to waive the trade exam for a reinstatement or there are felony convictions, complaints, or application discrepancies.
- Applications are processed in order as received; there is no deadline date, unless it needs to be reviewed by the Board.
- LLP exam is required.
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License Types
Home Improvement Licenses
The home improvement license is required to perform remodeling in the following nine (9) counties -- Bradley, Davidson, Haywood, Hamilton, Knox, Marion, Robertson, Rutherford, and Shelby -- when the cost is more than $3,000 to less than $25,000 ($25,000 and up require a "contractor" license), to existing residential homes.
The law (T.C.A. 62-6-501) states home improvement means the repair, replacement, remodeling, alteration, conversion, modernization, lead-based paint abatement, or addition to any land or building that is used or designed to be used as a residence or dwelling for one to four units. This includes the construction, replacement, or improvement of driveways, swimming pools, porches, garages, landscaping fences, fall-out shelters, roofing, painting and other improvements adjacent to the dwelling. In addition, the installation of storm windows, awnings, and also for central heating or air conditioning systems (unless the trade is regulated separately within the municipality, per T.C.A. 62-6-503).
Each location of the home improvement business would need a license, unless they hold a contractor license.
Home improvement does not cover electrical or plumbing. You must check with the local jurisdiction for their requirements, permits and inspections. This may include obtaining the state's license as a Limited Licensed Electrician (LLE) or Limited Licensed Plumber (LLP). There is not a state HVAC license for projects less than $25,000.
*Lead based paint removal - see important requirements at the "Home Improvement" section of the Board's website.
Home Improvement recently merged with the Contractor’s Board. Any county may choose to adopt the law, and more information is available on the Website.
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Home Improvement -- How to Obtain
No exam is required for home improvement licenses.
- Application fee of $250
- Licenses are for two (2) years
- Attach an original proof of financial responsibility in the amount of $10,000 in ONE of the following forms. (1) Surety bond with written Power of Attorney attached, (2) cash bond, (3) property bond, (4) Irrevocable letter of credit (ILOC). Note: Bonds and ILOC's cannot be released for one (1) year after replacing or license expiration. The license is issued in the exact name of the company or individual on the bond.
- Submit proof of insurance: workers' compensation; and general liability in the minimum amount of $100,000.
- Please allow 5 to 7 business days for mail delivery to our office. You may check status of license issuance under License Search.
- The Board must approve the license issuance. Must submit the completed application by the 20th of the month prior to the Board meeting. The Board meets during the months of January, March, May, July, September and November. To obtain a license prior to the Board meeting, a contractor may supply a written request for an emergency review.
Complete instructions Home Improvement
Home Improvement Application [pdf]
License Issuance
Upon approval of your completed application, a permanent license will be mailed. Applications submitted correctly and completely will be presented to the Board. Please allow 5 to 7 business days for mail. Please display your license in a noticeable place at your business location and list your license I.D. number in advertisements. Never require the consumer to pay for the project prior to completion; the law limits one-third 1/3 down payment to begin the project. Contracts must be in writing. Licenses are renewable on a two year cycle); cannot be renewed if expired in excess of 90 days and would need to reinstate an expired license through the new (initial) application process. License is considered invalid upon bond cancellation. You should receive a license renewal within 90 days of expiration. However, you must notify the Board of any address change, as state mail is not forwarded. If you do not receive a renewal in the mail, you may download from the Forms and Downloads section of our Web site.
Bonds / Irrevocable Letter of Credits (ILOC)
A home improvement contractor's bond or ILOC filed with our Board for obtaining and renewing a license cannot be released to the contractor for a period of 12 months after the license has expired; or until after the initial request, to replace/withdraw. This is to cover all prior projects should consumers have a claim. Therefore, if providing a cash or property bond, please keep this in mind. The bond is public information and consumers may request to file against the bond from a judgment.
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Limited Licensed Electrician
This state license is only required for electricians where the total cost is LESS THAN $25,000 and if they are working in a municipality where there is not a local license agency for inspections; the State Fire Marshal’s office with the Division of Fire Protection performs these inspections for local government having no codes inspectors. A contractor license with a CE classification is exempt from the LLE; but not exempt from local license/permit fees or inspections. Instructions for obtaining an LLE license are on the application, located on our Web site under Forms and Downloads.
To make sure of the type of license needed for projects less than $25,000, you must check with the local government; contact information is available on our Web site, or you may check with the local power company for their local licensing, permit, and inspection requirements. Some may require you to take their electrical exam, unless you have a CE contractor license.
The LLE is not accepted where the local jurisdiction has licensing and inspections already in place, such as the following: Davidson (Nashville); Hamilton (Chattanooga); Knox (Knoxville); Shelby (Memphis).
Local License (City/County from each municipality)
The local license is required regardless of the amount of the project, in areas where there is a codes office.
When there is not a local codes office, you would check with the county, such as the power company, for locations of the permit offices. Local licenses with codes are typically referred to as journeyman/master, etc. Every jurisdiction is different, and you must adhere to their local requirements. If you have a state contractors CE license, you will not be required to take their local electrical exam, but will need to pay their fees. Those who work in counties having a codes office which performs their own inspections (such as Davidson, Hamilton, Knox, Shelby, etc.), licensing and testing, the LLE is not accepted. Please contact your local codes for their requirements.
Information is available on our Web site, or you may check with the local power company.
More information on obtaining a Limited Licensed Electrician (LLE) license is on the Web site.
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Limited Licensed Plumber (LLP)
The Limited Licensed Plumber (LLP) license is required for projects less than $25,000 in municipalities where there are no local plumbing licensing agencies and inspections (except for the 15 *exempt counties). Plumbing work is defined as the construction, alteration, repair, improvement, movement, demolition, putting up, tearing down, or furnishing labor to install material or equipment within any residential or commercial building of all piping, fixtures, and appliances for the supply of gas, water, liquids or disposal of waster water or sewage; provided, that there is no intent to require licensure under this part for plumbing work performed outside a residential or commercial building, including but not limited to utility connections or irrigation systems.
LLP License Exemptions
- A state-licensed plumbing contractor with a CMC-A, MC-A, CMC, or MC classification is exempt from the LLP requirement.
- Modular home installer or retailer licensees performing plumbing work on a modular unit, in connection with a manufacturer’s warranty
- Employed as a plumber with a State licensed plumber or contractor
- Homeowner may perform plumbing on their own residence
- Appliance hook-ups have exemptions, where the cost of labor is less than $500
- Locally licensed as a plumber within the county, city or municipality where performing plumbing work; (the LLP is not accepted)
- Working in any of the 15 exempt counties where the LLP is not required. Those exempt counties are Benton, Decatur, Dickson, Giles, Henderson, Henry, Hickman, Humphreys, Lake, Lawrence, Lewis, Obion, Perry, Stewart and Weakley.
Note: A limited licensed plumber (LLP) may not use the appellation term "contractor" unless they hold a contractor license
Inspections and permits are not currently available in all municipalities. Effective January 1, 2011, the State will perform these inspections.
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Fire Protection -- Fire Sprinkler Systems
Those performing work on fire protection and fire sprinkler systems, must also register with the Tennessee Division of Fire Protection. More information may be obtained from their Web site. A sprinkler license as a "Firm" and another for the "RME" (Responsible Managing Employee) is required with this Division. For projects $25,000 or more, the contractor must also have a third license as a contractor with a CMC-D classification.
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Felony Conviction/Judgments/Disclosure
Conviction does not preclude someone from licensing; however, it does require the Board's approval. If you have been convicted of a felony in any jurisdiction (Tennessee or any state); or if you have had disciplinary action against another professional or trade license, you must attach a statement explaining the details of the conviction, charging document, the disposition and proof of any sentence or court order and release of probation. Before a license is granted to anyone with a conviction, they may be required to appear before the Board which meets at least six (6) times annually. The Board is charged with protecting the safety and welfare of the public and they will judge each individual case on its own merit.
The law requires disclosure of felonies, as well as any court litigation and judgments relative to home improvement. A license is not automatically denied due to judgments and convictions, however, failure to disclose is a violation of law and a civil penalty may be assessed for not providing true and correct information, such as the license denied or revoked.
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Examination/Testing Information
Are examinations required to obtain a license?
Yes, exams are required to obtain a license for contractor; limited licensed electrician (LLE); and limited licensed plumber (LLP).
Contractor applicants must take the Business and Law exam. Also, a trade exam may be required if you perform any of the following trades:
- Building (residential, commercial, or industrial)
- Electrical and mechanical (plumbing, HVAC/refrigeration, fire sprinkler)
- A new masonry exam, LMC (Licensed Masonry Contractor) will be required effective January 1, 2011 in order to perform or bid work as a subcontractor where the total cost is $100,000 and up. The former BC-9 or BC (commercial) will no longer be acceptable. See "Masonry" summary of legislation from our website.
More information relative to exams and classifications are available under Contractor Classifications Outline; and also the exam provider's information is in the Candidate Information Bulletin prepared by PSI, our exam vendor. NOTE: New exam contract for July 1, 2011 may come with changes!
Not all "contractor" professions require a trade exam; all require the "Business and Law". Exams are good for two years, unless the qualifing agent has remained active in construction, then may be accepted longer. As for trade exams, no trade exams for those performing any one of the 33 building categories, such as: roofing, landscaping, excavation, floor covering, conveyors, demolition, irrigation, painting, etc., (any one of the 33 building categories in the classification rules of 0680-.16, no exam; more than five (5) of these classifications would require either a residential or commercial building exam, with the exception of BC-9 (masonry) which has it's own LMC trade exam); no trade exam for: audio video installation, low voltage conduit, telephone lines, cable TV lines, and solar panel installation (without perfoming electrical) are not required to take a trade exam. No trade exams for any of the Heavy Construction (HC); or Highway, Railroad, and Airports (HRA); or Environmental (Asbestos, Lead, etc); no trade exams are required. To obtain a full Municipal Utility "MU" or "MU-B" to build sewer plants, requires a commercial exam. Many combined exams are offered, such as: Residential, Commercial (BC-A,B or BC-A,b(sm); or mechanical combined exam to include plumbing and HVAC (CMC); or to obtain 5 or more of the subcategories would require a trade exam in that profession. Exams are provided by PSI. More helpful information regarding the exams is available under the "Contractor Classifications Outline" or you may email staff from the "Contact" information. Reciprocity information may be obtained at the website for a complete list of states with a trade exam waiver agreement. In addition, the NASCLA commercial exam is accepted.
Other trade license exams, regulated by the board, for projects less than $25,000, are as follows:
- Limited Licensed Electricians (LLE) - 40 question LLE trade exam. (Business and Law exam is not required.) See "LLE Candidate Information Bulletin" for books and registration information.
- Limited Licensed Plumbers (LLP) - 40 question LLP trade exam. (Business and Law exam is not required.) See "LLP Candidate Information Bulletin" for books and registration information.
- Home Improvement - No exams required.
Exams are open-book based upon the information provided in each profession's "Candidate Information Bulletin" provided by PSI.
Bookstores for Exam Publication Resources – what is the link?
PSI
NASCLA
Home Improvement licenses do not require an exam.
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How do I apply for licensing exam?
You must apply through the Board’s exam vendor, PSI. (Note: Passing the exam does not allow you to perform work as a licensee; this is only part of the process.)
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Are licensing exams available online?
No. Exams are offered in Nashville, Knoxville, Memphis, Chattanooga, Jackson, and Johnson City. In addition, PSI has test sites in more than 26 states. Those out of state may request by special accommodations to take the Tennessee exams in a state closer to them. Those with disabilities may also request special accommodations. (Registration is available online, but not the test.)
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May I sign up online?
Yes, you may schedule the exam online through PSI. Exams are scheduled by appointment, and you should never have to wait more than 14 days to get a date. Scheduling requires using your social security number.
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May I take the exam without signing up in advance?
No. You must contact PSI to schedule to take the exam by appointment. You may call PSI at: 1-800-733-9267.
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Do I have to be preapproved to take a trade exam prior to registering with PSI?
Only the Plumbing/Mechanical trade exam requires preapproval. The Plumbing (CMC or CMC-A) or full mechanical preapproval is performed quickly by the Board office. Information is available under Exam Preapproval Request in Forms and Downloads, as well as the CIB. Plumbers must provide proof of three (3) years experience or have an engineering degree in plumbing or mechanical to be approved.
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Can more than one (1) exam be taken in a day?
Yes, but check to see if you will be given a lunch break in between tests. Exams are often administered without a break when taking more than one in a day.
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What is the Cost?
The exam cost is $55.00 for each exam. There is not a limit on the amount of times you may take the exam, however, this may be an issue with the testing center if taking more than four times to obtain questions to sell to applicants. More information on the exam appointments, fees, locations, etc., is available under the “Exam” heading or in PSI’s “Candidate Information Bulletin.” There is no limit on how many times you may take the exam, as long as you follow PSI’s guidelines.
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Are cram schools permitted for exam preparation?
It is not a requirement (or recommended) to go to a pre-licensing preparation school to cram for the exams, as exams are open book. However, if you choose to do so, these schools are required to be approved by the Board and are listed on our Web site.
Pre-licensing contractor examination course providers are regulated by the Board and required to be licensed prior to offering classes to take the contractors exams.
These course providers may not:
- Guarantee you will pass the exam
- Offer financial statement advice or refer you to a CPA/PA
- Offer insurance
- Ensure the class has adequate space and seating
- Provide actual questions from the contractor’s exam
- Entice students to purchase unnecessary course materials or classes where the contractor does not need or is experienced.
If you’ve taken a course and the laws, rules, and regulations have been violated, you may submit a written complaint. (See the “Law and Rules” section on the web and review under T.C.A. 62-6-138 and Rule 0680-5, for further information.)
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I passed my exam, what do I do next?
The exam is only one part of obtaining a license. You will need to attach a photocopy of your exam score(s) to your license application and complete all the licensing requirements. Scores are given the same day as tested. (By providing a copy of the exam, it helps us to obtain a verification quickly from PSI by having the correct individual's name and SS number.)
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I am licensed in another state and want to operate in Tennessee. Do you have reciprocity agreements with other states? Which states?
You cannot operate in Tennessee with another state's license. The reciprocal agreement is a trade exam waiver, only. The other state's trade exam scores are accepted if you are currently licensed by a contractor's board in Alabama (building, HVAC and electrical), Arkansas, Georgia (commercial), Louisiana, Mississippi, North Carolina (residential and commercial, only), Ohio (electrical and mechanical), or South Carolina.
Contractors with licenses from the above states must still take the Tennessee Business and Law exam and complete all application requirements prior to being licensed in Tennessee.
Not all agencies within these states reciprocate due to their local codes and trades licensing. The state where you are licensed must complete the License Verification form located in the contractor license application.
In addition, many local trade exams, such as the electrical and mechanical with local municipalities (Nashville, Knoxville, Oak Ridge, etc.) in Tennessee might be acceptable. You must provide proof by having a letter stating their exam is comparable to Tennessee’s and was proctored.
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I have a Tennessee license and need to apply for a license in another state
You may fax the License Verification form to (615) 532-2868, or email it to Contractors.Home-Improvement@TN.Gov, or mail to our office address:
500 James Robertson Parkway
Nashville, TN 37243-1150
You may also contact our reciprocation section (615 532-3993) to obtain information for getting a verification form completed by Tennessee. More information concerning licensing requirements of other states is available from the National Association of State Contractors Licensing Agencies (NASCLA) www.nascla.org
To obtain a new Tennessee license, you would need to give your state the license verification form from our license application to complete. Questions for new licensing should be directed to (615) 532-3983 or send to our email address located in the "Contact Information".
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Retesting - Are old exam results acceptable? How recent must they be?
If you do not apply for a license right away, or your license has been expired more than two years, old exam scores are generally good for two (2) years. That period could be longer if approved by the Board based upon your written request to waive, such as: if you have remained active in the construction industry for the past two or more years by working for another contractor; etc. However, it is up to the Board to make the final decision and they will consider all the facts provided; information on the application (experience, reference, etc.); complaint record; explaination, etc. You may submit a written request to the board to accept scores older than two years and waive retesting when turning in the license application by providing an explaination.
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Is continuing education required?
No. The Board does not require continuing education. Some programs, such as environmental licenses with the Department of Environment and Conservation, may require continued education for certifications. Therefore, you would be required as a condition of these licenses to keep abreast of current certifications, according to their laws and regulations.
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May the person taking the exam (qualifying agent) be listed or designated on more than one license?
Yes, if that person is an owner, they may be listed as the Qualifying Agent (QA) on more than one license. A fulltime employee designated on a license would need to have a majority ownership interest of at least 20 percent to be added to another license. Parent companies with several subsidiaries may request to use the same individual on more than one license, by providing an explanation of their responsibilities and how they are considered a full time employee at more than one entity. The Board must review and approve requests for a QA to be added to more than two (2) licenses.
Qualifying agents, who have no ownership of the entity applying for the license, may be required to interview with the Board if they have been employed less than six (6) months or listed on more than two licenses. Providing a W-2 form or past check stubs is acceptable to prove employment to have the interview waived.
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Is the qualifying agent considered the owner of the license?
No, the entity providing the financial statement is the owner. If the qualifying agent is only a fulltime employee and lacks majority ownership, the license belongs to the entity and they have 90 days to replace, should the QA leave employment. The trade exam would be required to replace or add a qualifying agent. If a new QA has not been designated after 90 days, the license classification is removed from the license. If they were the sole QA covering all classes, the license will be made invalid with a status of “Needs QA.” After the license expiration of 12 months, the license cannot be renewed.
For classifications that do not require a trade exam, the new QA must supply a resume of experience and, if applicable, provide environmental training certificates for specialty classifications.
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Changes in license status:
How do I renew a license?
Renewal notices are mailed 90 days prior to the license expiration date to the address listed on file. If you have moved, mail is not forwarded to the new address. If you have not received your renewal, please contact our office at 1-800-544-7693 to have a renewal form mailed to you. You may also download a renewal form. You may check the status of your license renewal online.
It takes approximately 30 days to process a renewal if submission is correct and complete. State mail delivery takes 5 to 7 business days to reach our office and the statute requires the renewal to be received in our office 30 days prior to the expiration date to prevent the contractor from working unlicensed. There is not a grace period to allow contracting while the license is expired.
Renewal requirements for contractors:
- Complete the Notice of Renewal and have signature notarized.
- Renewal fee is $200 for two (2) years. There is a $20-per-month late fee, not to exceed 12 months.
- A contractor license cannot be renewed if expired 12 months or more. After 12 months, a new contractor license application must be submitted.
- A current financial statement (12 months) must be in the name as licensed, and must show sufficient working capital and net worth to support monetary limit (10 times the lesser of working capital and net worth. Example: Contractor with $500,000 limit must show minimum of $50,000 in both working capital and net worth).
- A CPA is required to prepare financial statements in which the monetary limit is more than $1,500,000, and does not have to be an “audit” as required for first-time licensing and revisions; “Reviewed” is acceptable.
- Contractor’s with a limit less than $1,500,000 may prepare their own statement.
- For corporations with a different year end as from their expiration date, they need to request in writing to use past statement until their CPA has finalized. Unfortunately, the expiration date cannot be changed to correlate with year-end.
- Proof of insurance (general liability and workers compensation).
- Effective March 1, 2011, all contractors will be required to provide "Workers' Compensation insurance for themselves (owners) unless they are registered with a new program passed by the legislature to be developed by the Secretary of State's office, as a "Construction Service Provider"
- Corporations and LLCs must ensure they are active with the Secretary of State.
Once your license expires, there is no grace period. Holders of expired licenses cannot legally contract or permit projects. The status on the Web site will change to “delinquent” for the 12 months in expired licensees have renewal rights. Renewals are processed in the order received and usually take 30 days to process and issue if submitted completely and accurately. Those renewals filed incompletely will not be issued until the contractor has submitted the lacking information. You may check the status of your renewal at: http://verify.tn.gov/
A list of the "Status" codes assigned to a license is available from the "License Search Tips".
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How far in advance of expiration date should my renewal be completed?
Regulations requires the renewal to be received by the board within 30 days of expiration date.
Please allow 5 to 7 business days for mail delivery. Late fees are not applied until after the expiration date. The Board relies on the date of receipt; not the post-mark date. Therefore, if a license expires on 9/30/2009; a late fee will be generated on 10/01/2009. The status on the Web site will reflect “Delinquent” until the license process is finalized and is issued; after 12 months, the status changes to “Failed to Renew”. You may check the status from our Web site under License Search.
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I let my license expire. How do I have it reinstated?
Each license has different renewal rights and late fees. There is not a grace period and it is not legal to perform work after the license expires. After the license expires, the status will reflect as “delinquent” until issued, if renewed prior to losing renewal rights. After the loss of renewal rights, the status reflects to “failed to renew” on the Web site. At that time, you will be required to file for a reinstatement through the new license application process and fulfill the same requirements. On page one (1) of the new application, check “reinstatement” and the same license number will be reissued.
Contractor - Late fee is $20 per month. After 12 months, a new license application must be completed and submitted. Renewal rights are lost after 12 months. After 12 months, the contractor must complete the new license application to reinstate the expired license, with all steps required, except exams are not required to be retaken as long as the license has not been expired more than two years (24 months). After two years, the contractor may request in writing to waive the exams if they have remained active in the construction industry by working in another state, or as a subcontractor or for another licensed contractor. These instructions are included in the contractor new license application. Any time a license is reinstated, the contractor may apply for the license in another name, mode of operation, and/or monetary limit, by listing the changes on the application. Be sure to check reinstatement on the new license application and list prior license ID number. A contractor may place a license in retirement in lieu of renewing, if done before the end of the 12 months.
Home Improvement - Late fee is $10 per month. After three (3) months, a new application must be submitted.
Limited Licensed Electricians - Late fee is $10 per month. After three (3) months, a new application must be submitted. Applicants must re-take the LLE exam or request waiver by the Board. See the LLE Renewal information on the Web site.
Limited Licensed Plumbers – Late fee is $5.00 per month. After three (3) months, a new application must be submitted. Applicants must re-take the LLP exam or request waiver by the Board. See the LLP application and information on the Web site.
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May I retire my license?
Only the contractor licenses have a means to retire. In lieu of renewing a contractor license, you may retire by completing the Retirement Application with a $25 fee for each year (no financial statement or insurance needed). If you send in prior to the expiration date, you will not be required to submit the renewal fee. If the license has expired, you would need to send in the renewal fee and any applicable late fees.
Should you renew the license and then place in retirement; renewal fees are non-refundable, however, you would be allowed to remove from retirement without repaying the renewal fee during that period.
The law allows a license to be retired annually for up to seven (7) years, and license holders must renew the retirement by paying $25.00 for each year (i.e., $50.00 for two years to remain on biennial cycle). After the seven-year period, renewal fee of $200.00 would be required before replacing in retirement.
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How do I reactivate my retired license?
If you retired the license prior to renewing, simply complete the license renewal requirements. No exams are required to bring a license out of retirement.
If you had already fulfilled the renewal requirements and placed the license in retirement in order to cancel insurance, you would not be required to re-submit the renewal and may then only request the license to be reactivated. This Reinstatement from Retirement form is on the Web site in the “Forms and Download” revision section.
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May I change my license to inactive status?
There is no “inactive” status issued by the computer system and a license which is not renewed will have an expired date. For information on the status codes of licenses is available from the "Search Tips". A contractor with an active license status may retire a license by completing the retirement process. If the license holder is no longer doing business, he/she may have the status changed to “withdrew” by supplying a written request. If you do not renew, the license will automatically be changed to “delinquent” for 12 months (Contractors). Home Improvement, LLE and LLP will change to “delinquent” for three (3) months, then “failed to renew” after 12 months. After one year, it will change to “expired.”
A list of status codes are available at the "License Search Tips". If the licensed entity goes out of business, and does not desire to retain renewal rights, they may simply let the license lapse or send in a written request to change the status to "Withdrew"; otherwise, the status will be the same as when a license expires. The exam scores of the Qualifying Agent (QA) may be used to license another entity and this information is in the "New (initial) Contractor License" application and the revision form of the "QA - Add" form.
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I recently updated my status. Why hasn’t my status changed online?
The status on the license does not change until staff process and issue the license. For example, if the renewal was submitted late, the status will remain “delinquent” until the license is actually processed. If late fees were not received, the license will not issue. Many times, staff will not know that a late fee was not received until the completed audit at the time they approve license for issuance.
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Complaints:
How do I file a complaint against a company/individual?
A complaint may be reported against any of the professions we regulate, and complaint forms are available online.
Upon receipt of the complaint, our staff and legal department will evaluate whether the Board has jurisdiction to take action. The Board addresses licensing law violation complaints. Consumer residential complaints without law violations may be referred to the Division of Consumer Affairs to offer mediation.
Once complaints are investigated, they are presented to the Board anonymously by our attorney. None of the parties are identified to the Board and they do not see the complaint. The attorney prepares a legal report of law violations and recommendations to assess civil penalties, fines, or take formal action to suspend or revoke the license.
Citations with an order to “cease and desist” may be issued for unlicensed activity.
Complaints may be received anonymously. However, they must include the name, contact information, project details, and location address in order for action to be taken and investigated.
The Divison of Consumer Affairs may list contractors failing to respond to a complaint on the Problem Contractor list. Disciplinary action is updated on the Department's website monthly after every Board meeting. In addition, our website has a list of formal actions of revoked and suspended licenses. Open complaint cases or those closed without discipline are not listed on the website and you would need to contact our staff to check the complaint history of a contractor.
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What can the state do if I have a legitimate grievance?
The Board does not have the authority to award monetary damages, refund money, or force the contractor to make repairs and complete the project. The Board may assess discipline such as letters of warning/caution, citations, civil penalties, consent orders and in some cases, they may revoke or suspend the license through an adversarial formal hearing process with an Administrative Judge, pursuant to the Uniform Administrative Procedures Act. Anyone seeking to recover monetary remedies for injuries should consult a private attorney, as the Board has no jurisdiction over these matters. Further, the Board cannot hold the issuance of a license renewal until the respondent is given due process through the Uniform Administrative Procedures by a formal hearing.
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Are there consumer tips for hiring a contractor?
Yes. Please see our main Web site for all types of consumer tips.
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Where can the implied (one-year) warranty law be found?
This law is not governed by the contractor license law, however, it is under T.C.A. § 47-2-314. These laws and others relative to consumers may be reviewed on our Web site section for Consumer Law References.
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Change of address/other key information:
Am I required to notify the board if I change my address?
Yes, the law requires address changes to be submitted in writing within 30 days. Failing to do so is a violation and licensees could be subject to a civil penalty of up to $1,000. State mail is not forwarded and the renewal form and license would not be delivered to the new address.
To report an address change, you may use the form on the Web site at the Forms and Downloads.
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Can I change my information online?
Not at this time. This is in process and may be available soon!
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Misc:
How may I check or search if someone is licensed?
License Search is available online. You may obtain a list of "Search Tips".
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Am I required to notify the board if my job status changes?
Yes. Several changes require board notification by law. When the Qualifying Agent (QA) leaves, the Board must be notified within 10 days (Rule 0680-1-.02). A new QA must be designated by the licensed entity within 90 days or the license classification for the license becomes invalid. If this is the sole classification, the license is invalid. Contractors should not note the change on the renewal without first obtaining a letter approving the new qualifying agent.
The entity is also required to notify the Board of any changes in officers. Whenever there is a change in ownership, where there is a majority change with a new stockholder, the contractor may be required to apply for a new contractor license.
If the entity changes their mode of operation, they must apply for a transfer before operating in the new name or mode.
Forms are available under Forms and Downloads.
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How can I get the forms I need?
Forms are available under Forms and Downloads on by calling the Board (615 741-8307 or 800 544-7693.
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How do I know when and where regulatory boards meet?
Our calendar is available online.
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Does this board have a newsletter to which I can subscribe?
The Board is in the process of publishing an electronic newsletter, and you may subscribe online. You may also register to receive important notices of rulemakings and law changes.
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Is a license required before bidding? How long does it take to get a license?
Yes, a contractor license is required prior to bidding, offering a price, or contracting for projects $25,000 or more. A Home Improvement license is required prior to offering to engage when the cost is $3,000 or more.
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Is the qualifying agent considered the owner of the license?
No, unless they are the owner of the the entity providing the financial statement. The license is issued in the same name and mode of operation as the financial statement. Many times, the Qualifying Agent (QA) may be the same individual who is an owner of the licensed entity, which may be as a sole proprietor; partnership; corporation; or LLC.
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Are subcontractors required to be licensed?
Some subcontractors are required to obtain a contractor license. Those bidding directly to the licensed prime (general) contractor are considered subcontractors. The only subcontractors required to obtain a license as a contractor are those performing work in excess of $25,000 for electrical, mechanical, plumbing and HVAC. Effective July 1, 2010, a masonry subcontractor is also required to be licensed if the masonry portion is $100,000 or more. Subcontractors are required to be listed on the outside of the bid envelope.
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Other subcontractors, such as roofing, masonry, flooring, landscaping, fencing, concrete, are not required to be licensed unless they bid directly to the owner. Those bidding directly to the owner are considered “prime” contractors and required to obtain a license for projects $25,000 and more. This includes individuals bidding directly to a homeowner who is overseeing the building of their own house and obtained the permit.
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Are HVAC contractors regulated by the Board for projects less than $25,000?
Not unless it is in a county that has adopted the Home Improvement law and they do not have their own HVAC permit and licensing process. Most projects with a cost of less than $25,000 are regulated at the local level. It would be best to contact the county in which the work will be performed. The Board does not have a special HVAC license for small projects, except for the Home Improvement license, which is required only in certain counties. Local municipalities have their own requirements for a license or permit for inspections.
The Board has a CMC-C classification for HVAC contractors, which is required for projects in excess of $25,000. CMC (full mechanical) also covers. For small HVAC projects please check with the local municipality for their license, permit and inspection requirements. Contact information for local government is at: http://tn.gov/local/
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May a contractor bid while in the process of obtaining a contractor license, or wait to see if they are awarded the bid, and then apply for a license?
No. Most bids require licensing information on the outside of the bid envelope or the bid will be rejected. Bidding without a license is a class A misdemeanor, and the violator is subject to fines and prohibition from participating on the project (removed). In addition, the contractor license will be held for six (6) months from the date the board learns of the violation.
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What if I have a chance to bid a job but my limit is not enough and the Board does not meet again for another month. Can I get a special review?
Possibly. If it is considered a “hardship” to the owner (not the contractor), and they may submit a written request for the contractor to have their license application to be reviewed prior to the next meeting. Hardship information is on the Web site under Forms and Downloads.
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Does the Board accept credit cards online?
No. The Board is not set up to accept credit cards for fees by phone or online. Any fees not mailed must be delivered to the cashier’s office in the Davy Crockett Tower. The Board office cannot accept any fees at its physical location (Andrew Johnson Tower).
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Are contractors required to appear for a personal interview order to obtain a license?
Not typically. The interview may be waived in most cases. If an interview is needed, a letter would be sent about three weeks after receipt of the application notifying whether the interview or waiver has been granted.
An interview may be required if there are complaints or outstanding judgments; felony convictions; bankruptcy; or lack of experience; and those who took the BC-A/r course (limited restricted residential license) in lieu of the exams. In addition, an interview may be required should there be insufficient information listed regarding experience or the financial statement. To prevent the license from being issued with an uncertain monetary amount or license classification, we may prefer you to meet with a board member.
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What is the deadline date to submit an application for the next scheduled board meeting?
Contractor applications must be submitted by the 20th of the month, prior to the Board meeting. The Board meets in January, March, May, July, September, and November. The Board calendar is located on our Web site. For license revisions, the deadline date is the last day of the month prior to the Board meeting.
The deadline date is in the law to allow staff enough time to process applications to be reviewed prior to the meeting.
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What if I need a license prior to the next Board meeting or missed the deadline?
There is a hardship provision to obtain a license prior to the next board meeting or to have the deadline extended. It would be if the contractor has obtained a request from an owner who needs them as a specific contractor to bid, contract, or perform work. The law allows a license to be issued prior to the next board meeting, for hardship circumstances to an owner (not the contractor), where it is in the best interest of the public safety and welfare. Note: The contractor cannot contract, bid or offer until the license has been approved. If the contractor has violated the law, the hardship will not be granted and they must appear for an interview with the Board. After the contractor completes all application requirements, they may have the owner prepare a hardship request letter. More information on obtaining a hardship review is available under Forms and Downloads. Hardship license approvals must be posted on the Web site.
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If my corporation or LLC is in another state, will I need to register in Tennessee?
Yes. You would need to contact the Tennessee Secretary of State (615 741-2286)
You may obtain forms to register as a foreign corporation or limited liability company and check for name availability. To obtain a tax ID number, contact the Department of Revenue.
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Are there specific bidding requirements?
Yes. Bidding requirements are defined in TCA § 62-6-119, which states the contractor must list their name as licensed, license ID#, classification, expiration date, and list the same information for their electrical, plumbing, mechanical or HVAC subcontractors, if those portions exceed $25,000. Effective July 1, 2008, geothermal HVAC contractors must also list their license information from the Department of Environment and Conservation (TDEC); effective July 1, 2010, masonry subcontractors must be listed for portions $100,000 or more (including materials and labor). See "Bidding" on the website or you may review the law from our Web site under Laws, Rules and Regulations.
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If a licensed prime contractor subcontracts to a licensed electrical contractor, can the electrical subcontractor subcontract to another electrical contractor who is not licensed?
No. All of the electrical subcontractors are required to be licensed, as well as, any subcontractors performing mechanical, plumbing or HVAC projects. In other words, a sub to a sub to a sub, all have to be licensed!
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May a contractor bid in another name other than as licensed?
No. Bidding in a name other than as licensed is considered unlicensed activity. Even if the contractor owns both companies, they must bid in the name as licensed (the licensed legal entity). Contractors may obtain more than one license should have additional companies separated for bookkeeping or tax reasons. In some cases, their licensed entity could contract with the owner, and subcontract to their entity, unless the subcontract requires a license (as listed above). See TCA 62-6-114 and Rule 0680-1-.25.
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I am a licensed contractor; why haven’t I received a roster?
The law was changed in 2001 which no longer requires any of the regulatory boards to print rosters. Due to the expense and length of time it takes to print, the roster is usually outdated by the time contractors receive them by mail. That information can be found online under License Search.
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As a family business, may the parent allow their son or daughter use the license to contract and perform work?
No. Only the approved entity may utilize the contractor license. Family members may be employees of the family business, but they may not start up their own business and use the parent’s license by contracting in their name or an entity they use for their own business.
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How can a contractor get on the State of Tennessee’s list to bid state government contracts?
You may register as a vendor with the Tennessee Department of General Services. More information is available under Valuable Resources.
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Do all contractors have to be licensed in order to joint venture?
Yes. Please see Rule 0680-1.11. Contractors may contract as a joint venture and combine their monetary limit. The joint venture is not required to obtain a separate license; both license names must be on the contract.
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Can a contractor bid in excess of their monetary limit?
Yes; there is a 10% bid tolerance, only. Contractors with a restricted limited license (BC-A/r) classification, with a $70,000 limit, do NOT have a 10% bid tolerance.
Prime contractors must be cautious when obtaining bids from subcontractors. § TCA 62-6-120 finds it a violation for a contractor to accept a bid from a subcontractor without the sufficient monetary limit and classification. In addition, only the owner may supply labor/equipment, therefore, could not be deducted from their portion of the project’s total cost. Caution is recommended when bidding alternates as part of the total bid. Note: The Attorney General has issued opinions on this matter; February 11, 1993 (#93-12); and August 6, 1981 (#81-452). If a bid is rejected for failing to supply a valid bid due to violating the law, the prime contractor may not be allowed to bid on any rebidding or participate on the project.
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What if I have a chance to bid a job but my limit is not enough and the Board does not meet again for another month. Can I get a special review?
Possibly, if it is considered a “hardship” to the owner. The owner may submit a written request for the contractor to have their license application to be reviewed prior to the next meeting. Hardship information is on the Web site under Forms and Applications.
The contractor must submit a complete license application (including exams passed, financial statement submitted, etc.) or revision request, with a hardship letter from an owner (not the contractor) and it must fully describe the hardship, details of the project; name of project, bid date, estimate of project and description of the hardship (why they need you to bid the job, such as, if there are not enough competitive bids; specialized services, whether it affects public safety, etc.)
The hardship license must be approved before submitting a bid or contracting. Please review the hardship information on the Web site.
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Is there a national association which has information related to contracting regulation for all states?
Yes. The National Association of State Contractor Licensing Agencies (NASCLA) has several resources for contractors wanting to work throughout the United States.
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I have a residential building license and want to get a commercial building license. Do I need to apply for another license?
No. You may add a classification to your current license.
Revisions must be approved by the Board and the deadline date to send is by the end of the month, prior to the next Board meeting. You may apply by completing the appropriate revision forms to: add classifications, increase your monetary limit, change mode of operation (transfer), or change name on a license.
These forms are available under Forms and Downloads.
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May I transfer my license to another company?
No. A license is not transferable to another entity. You would be required to apply for a new license or a second additional license (if you want to keep the other license active).
You may transfer or change to a different mode of operation. For example, change from a Sole Proprietor to an LLC. You cannot contract in the new mode until the license has been approved through the revision process. A revision form can be found under Forms and Downloads.
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Who is in charge of electrical inspections for the LLE license?
The Fire Prevention Division permit agencies throughout the state
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Are fire sprinkler contractors required to be registered in addition to having a contractor license?
Yes. There are additional requirements for these contractors.
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Are there requirements for Alarm System Contractors?
Yes. Licenses are required through the Alarm Board.
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How can you check the complaint history of a contractor?
You must contact our complaint staff.
Open complaints are not listed on the Web site unless discipline has been assessed, and these are only after the case is closed. These are listed on our Web site at Disciplinary Actions for the department. The Division of Consumer Affairs mediates complaints and has a list of Problem Contractors. Open cases are not public information until after the investigation is complete. A contractor license cannot be held due to a complaint received. They are given an opportunity for a formal hearing to be held with an Administrative Judge. More information is available under Consumer Resources.
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The municipal utility (MU-B) for water and sewer systems rules indicate the BC-B (commercial) exam must be taken. What about contractors who held the license prior to the rule change?
Contractors who held a MU-B license classification prior to the rule change of April, 1996, are considered “grandfathered” and may continue to build as before the rule change.
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What is “spec” building?
Spec buildings are those built by a licensed contractor on his/her own land for the purpose of resale when there is not a custom contract.
Prior to January, 2003, certain counties allowed the provisions for contractors to spec build in their county of residence. However, legislation was put in place to allow these contractors to obtain a special “spec” homebuilding license should they apply prior to January 1, 2006. This was pursuant T.C.A. § 62-6-102(D)(i). For example, a licensed spec builder in Brownsville would have a license classification listed as: “Spec Homebuilder – Haywood County.” That contractor may build a house in which the cost is $350,000 or less.
The contractor licensed as a spec homebuilder may not construct a residence in a county in which he/she is not licensed, cannot build on land owned by another individual or entity, and cannot enter into a contract to build for anyone. In addition, a custom contract with anyone to build the home from the ground up would not be considered a spec house and would be a violation of the law.
There is no longer a provision to obtain a new spec homebuilding license. Therefore, once this license expires and is not renewed within 12 months, a spec contractor would need to apply for a residential BC-A license by taking the exams and supplying financial statements.
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Lead Abatement Requirements
Lead abatement remodelers are required to be certified through the Department of Environment and Conservation and may be contacted at 1-888-871-5323.
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Codes Adoptions
The Division of Fire Prevention is responsible for adopting building, fire codes, and sprinkler requirements for structures. However, each local government may adopt codes for its jurisdiction. More information regarding recent legislation on statewide codes is available under Laws, Rules and Regulations.
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Where may I obtain a list of the contractor license laws and regulations?
These are available at the Board’s Web site under Laws, Rules and Regulations.
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Is a state contractor license required to build on federal projects?
If the project is 100% federal (on federal land; federally funded, etc.), the state does not have jurisdiction and the contractor would follow the requirements by the federal government’s awarding authority. More information is available under Laws, Rules and Regulations,” Attorney General’s Opinion # 92-39.
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Are there special provisions for those in the military?
Yes, the law allows a licensee who has entered the military a means to keep renewal rights and they may reinstate their license without late fees or the requirement of filing a new license application.
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What is the penalty for bidding without a license?
A contractor who contracts or offers to engage without a license or proper classification and monetary limit is in violation of T.C.A. §62-6-120. Therefore, would be ineligible to be awarded the project, would not receive license for six (6) months, cannot participate in any rebidding of the project, and subject to civil penalties. A complete of list of monetary fines is listed in the rules, which may be found in Laws and Rules.
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