Skip to Content

Board for Licensing Contractors

How to Become a Licensed Contractor

 

NOTICE! A Tennessee contractor's license is required BEFORE bidding or offering a price, for projects $25,000 and up (includes materials and labor. Reciprocal agreements do NOT allow using another state's license in Tennessee. (Note: Must bid/contract in exact name as licensed.)

 

FAQ's Frequently Asked Questions - Can't find the answer to your question? Try the FAQs!

 

BIDDING: See bidding information at " Valuable Resources"


EMERGENCY (HARDSHIP) LICENSE PROCESS: All application requirements must be fulfilled. A Tennessee license may be issued on an emergency basis by following the “Hardship” license guidelines. A contractor cannot use another state's license to perform work.

 

FYI - Unlicensed contractors do not have lien rights and limited to recovery of documented expenses in court. Contractors who take money and do not complete the project may be arrested and convicted for felony theft. See "Consumer Resources" for more information.

 

___________________________________________________________________________________

CONTRACTOR'S LICENSE APPLICATION PACKAGE

Contractor's License Application [pdf]

Exam Information (PSI's Candidate Information Bulletin)

Bookstores (Code Books and Reference Manuals, etc., for Exams)

 

LICENSING STEPS

Click on the following links to review the step-by-step process or you may simply print the application form above:   

 

Contractor License Requirements - Summary

A contractor's license must be obtained first before operating! A license is required whenever the total project or contract amount is $25,000 or more (includes materials, labor, profit, etc.) by the “Prime” (general) contractor, the one bidding directly to the owner of the project, prior to bidding, offering a price, negotiating or contracting,   In addition, “Subcontractors” (those bidding directly to the licensed prime (general) are NOT required to be licensed as contractors, UNLESS, they are Electrical, Mechanical, Plumbing, and HVAC subcontractors performing work $25,000 or more; Masonry - when this portion is $100,000 or more (including materials and labor). Construction Manager's are required to have a contractor's license for projects $25,000 or more. A contractor's license is obtained as a Sole Proprietor, Corporation, Partnership or LLC, and issued in the exact name of the entity listed on the financial statement. Trade Exam(s) are required for many classifications; Business and Law exam is required by all new license applicants.  All contractor licenses are issued with a classification and monetary limt. Note: A contractor's license is required regardless, even if a local permit is not required for inspections.

 

 

General Information

A “Contractor's” license is needed for the following and prior to contracting, bidding, offering or negotiating a price, for projects $25,000 or more (*Masonry subcontractors is $100,000):

 

•           Prime (general) Contractors - Bidding or contracting directly with the owner;

•          Subcontractors - Bidding directly to a licensed prime (general) contractor to peform the following Electrical; Mechanical; Plumbing; and HVAC when the total cost is $25,000 or more; and *Masonry projects $100,000 and up (includes all materials, equipment, and labor).

•           Construction Management of any kind, where the value of the project is $25,000 or more.

 

The definition of contractor is found in the statute at T.C.A. 62-6-102.

 

NOTE:  Always contact the local county/city permit offices for their license requirements.  Contact information for all municipalities is available at:  http://www.tn.gov/local/

 


Classification - Types of Contractors

The license process entails all contractor applications to pass the Tennessee "Business and Law" exam; and also a trade exam may be required for some classifications (see "Contractor Classifications Outline") A complete list of the exams, registration information and study materials are available by reviewing the “Candidate Information Bulletin” of the exam vendor, PSI). 

 

  • Classification Types: There are different types of contractors' license classifications which range from:  Building, Electrical, Plumbing, Mechanical, Masonry, Excavation, Landscaping, Specialties such as Audio Visual, Solar Panel Installation; and Environmental.  You may also review the definition of contracting (listed below).
  • Reciprocal Agreements: This is a "trade" exam waiver agreement which exists with several state license agencies, for contractors having an active license with many Boards in: Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, Ohio and South Carolina.  For commercial, the “NASCLA National Commercial” exam is also accepted in Tennessee.
  • Qualifying Agent (QA) - Is the person who has been designated to take the exam for the entity obtaining the license and they may be an owner or full time employee. The QA does not own the license, however, if they leave the company, another must pass the exam within 90 days before the license becomes invalid.
  • Bonding is not required to obtain a contractor's license, but may be required for bidding or obtaining local government permits and inspections.

Monetary Limit

Every contractor's license is assigned a monetary limit for the size contracts they are approved to work. Projects cannot be split into phases to circumvent the monetary limit law. A tolerance of 10% is allowed pursuant Rule 0680-1-.13.

    • Financial Statement - Required by all applicants and it must be prepared by a CPA with a Reviewed or Audited opinion.   The financial statement is utilized to determine the size of license (based upon your working capital, net worth and experience) in which a monetary limit may be assigned to the license. See "Valuable Resources" for supplemental information.

 

Owner/Name on the License

The license is obtained in the name of the entity providing the financial statement as the owner.  Therefore, it may be a sole proprietor, corporation, partnership, or LLC.  Therefore, in many cases, the license does not necessarily belong to the qualifying agent (person taking the exam) unless they are also the owner.  providing the financial statement, insurance, etc. The contractor must bid and contract in the exact name as well as in the mode of operation as licensed. For example, if the license is issued to "John A. Doe" licensed as a sole proprietorship, they cannot contract as "Doe's Contracting, Inc." which is registered as a corporation.

 

Types of prime contractors needing a contractor's license include the following: Building (Residential, Commercial, Industrial); Electrical (including Low Voltage, Computer Cabling, Audio Visual; Alarm (see also "Alarm Systems Board"); Mechanical - Plumbing, HVAC (including geothermal well drillers), and Fire Sprinklers; Highway, Railroad & Airport (also see TDOT); Municipal Utility; Environmental; Specialties (Equipment Installation; Cell Towers; Playground Equipment Installation; Solar Panel Installations; etc.); and over 33 subcategories: Landscaping; Excavation; Painting; Demolition; etc. (*See compiled list of license classifications.) For those acting as "Design/Build contractors, make sure you comply with the license laws of the Architects and Engineers.

 

Types of subcontractors needing a contractor's license, include the following: Electrical, Plumbing, Mechanical and HVAC, for projects $25,000 or more; and Masonry for projects $100,000 or more. Geothermal well drillers must be licensed with the Department of Environment and Conservation and their license is required to be listed on the outside of the bid envelope, pursuant T.C.A. 62-6-119.

 

Contracting Definitions

The definition of contracting is under T.C.A. 62-6-102(2), and states in part:

  • Contractor is defined as performs or causes to be performed activities,  undertaking to, attempts to, or submits a price or bid or offers to construct, supervise, superintend, oversee, schedule, direct, or in any manner assume charge of the construction, alteration, repair, improvement, movement, demolition, putting up, tearing down, or furnishing labor to install material or equipment for any building, highway, road, railroad, sewer, grading, excavation, pipeline, public utility structure, project development, housing, housing development, improvement, or any other construction undertaking. (See Law, Rules and Regulations section.)
  • Prime (general) contractors are defined as contracting directly with the owner. The law requires the prime contractor’s classification to cover 60% of the project. They may subcontract the electrical, plumbing, mechanical, HVAC or masonry portion to a properly licensed contractor, as their subcontractor. Therefore, depending on the project; a prime may have a BC-A (residential) classification and may perform the subcategories incidential to the project, such as: framing, roofing, excavation, etc., (as outlined in the Rules and Regulations. 
  • Subcontractor is defined as one contracting directly with a licensed prime (general) contractor, and not the owner. The only subcontractors required to be licensed as a contractor are those performing electrical, plumbing, mechanical, HVAC or masonry portion, as noted in the "bidding" instructions.
  • Construction Management of any kind.

 

Deadline Date to Submit Application
Board approval for issuance takes approximately 4 to 6 weeks. Refer to the Board calendar for meeting dates. The application fee is $250.00; and the deadline date to submit an application for the next scheduled meeting is the 20th of the month (prior to the board meeting). If the 20th is not a week day or is a holiday, it would be the next business day. For example, if the Board meets January 24th, the deadline would be December 20th.


Hardship (Emergency) License

The Hardship criteria allows a license to be approved prior to the Board meeting. However, the hardship must apply to the "owner" of the project; not to the contractor applying for the license. It may also be issued whenever it is in the best interest of the public's safety and welfare. Always allow 5 to 7 business days for mail delivery. Overnight and express mail takes two (2) business days to reach our office (delivered to the Cashier's Office first). We recommend to email a copy of the application and mail the original with fee to expedite hardship requests needing immediate attention. All instructions are outlined in the Hardship application request form.

Exemptions from the License Requirement

Exemptions of the contractor's license requirement is outlined in the laws, rules and regulations, and applies to individual use, non-profit organizations, Department of Transportation's special let highway projects and federal projects. For example:

  • A homeowner of the residential property may perform work themselves ( individual use), without a contractor's license, as long as the residential structure is not open to the public; or for sale, lease or rent).
    • Allowed one homeowner permit once every two (2) years.
    • Anyone hired by the property owner is required to be licensed if they perform $25,000 or more of the work, as these contractors would be considered prime contractors since they are contracting directly with the owner. 
  • Members of a church may build a single residence for a preacher without a contractor's license; or they may construct a storage building for their individual use, as long as this structure is not open to the public, for sale, lease or rent.
    • Members of a church would not be allowed to construct a church building, when the total cost is $25,000 or more, since the building is open to the public.
  • A non-profit organization with a 501(c) federal exemption, may build single residences without a contractor's license.
    • They must follow local requirements for permits and inspections.

To review all exemptions, see T.C.A. § 62-6-102, 103 and Rule 0680-1-.22. 

 

HOW TO BECOME A LICENSED CONTRACTOR

 

(More detailed steps are in the "Contractor License Application" and may be downloaded from our website or with all forms located at the Forms & Downloads or follow the "Step by Step" directions above.

 

In order to become a licensed contractor, you must complete the Board's application process, which entails the following steps:

  • Attach Exam Score(s) - Contractor license applicants must supply exam scores with their application. The "Business and Law" is required and also many license classifications require a Trade examination (see "Classification" outline). (See also, "Step 1")
  • Exam Registration - Our exam vendor is PSI Services, LLC and they encourage online registration to make an appointment to take the exam at their various sites located nationally. However, you may also contact them by phone and their contact information is in the "Candidate Information Bulletin (CIB)". Please review the CIB for study references, site locations, registration information, and items you may bring into the exam.
      • Note: If you experience more than a 14 day wait to take the exam at a site closest to you, please contact the Board office at: Email. The exam vendor offers special accommodations to those with disabilities. The Tennessee exam may be taken at sites in other states, by completing PSI's special accommodation request form in the CIB. Due to the nature of the exam, these are not offered online and your qualifying agent (QA) must personally take the test at one of sites. Any problems experienced with the exam vendor PSI, you may contact the Board's office at: Contractors.Home-Improvement@TN.Gov
      • NEW! Exam Updated Codes (Eff. March 15, 2012)
    • Pre-approval to take the exam is only required for those taking the plumbing CMC-A or CMC exam.
    • Reciprocal - Trade Exam Waiver - You may obtain a waiver of the trade exam, If you are licensed in one of the reciprocating states: Alabama (building, HVAC and electrical); Arkansas; Georgia (Commercial); Louisiana; Mississippi; North Carolina (residential and commercial, only); Ohio (Electrical, HVAC and Refrigeration); or South Carolina. Note: The trade exam, only, may be waived; must take the Tennessee Business and Law. (These are the only states in which Tennessee has a trade exam waiver agreement.) More information is available on the "Reciprocation" section on our website. Reciprocal agreement does NOT allow a contractor to use their license in another state.
    • BC-A/r - Residential Restricted - Contractors applying for a restricted residential license (BC-A/r) may submit their course certificate in lieu of the exam scores. The person designated to take the exam on behalf of the license is called the "Qualifying Agent (QA)".
  • Financial Statement - Contact a Certified Public Accountant (CPA or PA) to prepare a financial statement in the required format.  A "Review" is required for limits of $1,500,000 or less; an "Audit" is required for limits exceeding $1,500,000. In Tennessee, you may check with the Accountancy Board to see if your accountant is properly licensed as both a "Firm" and "CPA" or check your state's website. The financial statement's net worth and working capital, in addition to experience, determine the monetary limit assigned to the license. Information as to the calculation of assets and liabilities is located in the application. (See also "Step 2")
  • Reference - Provide a "Reference" letter from a past client, employer, or  codes official (form is in application);
  • Corporate Registration - Corporations, Limited and General Partnerships, and Limited Liability Companies (LLC) must register  with the Tennessee Secretary of State, who may be contacted at (615) 741-2286 or information available at:  Tennessee Secretary of State
  • Insurance - Workers Compensation Insurance is required for contractors with one (1) or more employees; must also provide proof of General Liability Insurance (Insurance Information with coverage amount is also listed in the application instructions). The workers' compensation laws are governed by the Department of Labor and Workforce.
  • Application - Complete the contractor license application and attach exam scores, financial statement, reference, proof of insurance and mail to the Board office, by the deadline date of the next Board meeting, with the $250.00 fee (check should be made payable to "Contractors Board"
  • Board Review - The Board reviews all contractor applications before a license may be granted and assigns the classification and monetary limit. A personal appearance is typically not required with the interview waived. See the following for those required to appear:
    • A personal interview with the Board may be required in some cases, such as, if the qualifying agent is not an owner (only a full time employee) and has not submitted proof of employment of more than 6 months. For a personal interview to be waived, may need to provide evidence or proof of employment (W-2 tax forms; check stub, etc.) of the QA, only if they are NOT a majority owner.
    • Restricted Residential (BC-A/r) $70,000 license, who have taken a course in lieu of passing an exam, are scheduled for an interview.
    • Those who have complaints, felony convictions, bankruptcies, lack of experience, may be scheduled for an interview prior to the license being issued.
    • If your interview is not waived, you will be notified in writing of date, time and location to appear. These meetings are held during the months of January (Nashville), March (Nashville), May (Memphis), July (Nashville), September (Knoxville/Johnson City) and in November (Nashville).  
    • Interview Waived - Please note, those applicants qualifying to have the interview waived will be notified, however, the license is not issued or granted until after the Board meeting (they must vote for approval).
  • Hardship License Review - This is where the license process may be expedited, should it cause an undue hardship to an owner (not the contractor applying for the license), to wait until the Board's next scheduled meeting, and where it would be in the best interest of the public, safety and welfare. Should this be the case, the contractor may apply for a hardship license review to be approved to bid or contract, prior to the next board meeting, after fulfilling all application requirements. However, contractors with complaints or who have violated the law, cannot be considered and must interview with the Board at their next scheduled meeting.
  • Receipt Confirmation - A letter acknowledging receipt of the application is mailed to all applicants, however, state mail takes 5 to 7 business days. You may check the "License Roster Search" to confirm receipt. However, do not contract until you have received a license certificate in the mail with the license ID number, classification, monetary limit, and expiration date, which are issued after the Board meeting. If additional information is needed, the Board will send you a letter requesting additional information, with another deadline date, in order to be reviewed.



LIMITED/ RESTRICTED RESIDENTIAL ("BC-A/r" Contractor License Classification)

 

Contractors may apply for a Limited License with a BC-A/r classification, which restricts residential contractors to building in the amount of $70,000 or less. In lieu of the exams, they may attend a course at a community college. All other application requirements must be fulfilled, including a personal board interview.

 

More information is also available at "BC-A/r" on the Forms and Applications section of the web.

 

 

CONTRACTOR LICENSE - APPLICATION PACKAGE

Contractor's License Application [pdf]

Exam Information (PSI's Candidate Information Bulletin)

Bookstores (Code Books and Reference Manuals, etc., for Exams)

Licensing Steps

 

Supplemental Information

Secretary of State (Registration of Corporations, LLC, Limited Partnerships)

Department of Revenue (Obtaining a Tax ID/FEIN)

One-Stop Business Resource (TN.gov)

Insurance Information [pdf]

Forms and Downloads

Contractor Classifications Outline and Trade Exam Requirements [pdf]

Hardship (Request for Early Review) [pdf]

Laws, Rules and Regulations

Valuable Resources

 

_____________________________________________________________________________________

 

LICENSEE GENERAL INFORMATION

 

Once a contractor has been granted a license, it is issued for two (2) years and they are required to renew 30 days prior to the expiration date. In additon, they may need changes or license revisions. There are law requirements they must follow when operating in Tennessee.

 

  • Bidding law requires name as licensed, classification and expiration date to be listed on the outside of the bid envelope, including listing subcontractors.
  • Revisons - If you already have a contractor's license and need a license revision, see the "Forms and Downloads" of section three (3) for revisions.
  • Licensees must operate and contract in the exact name and mode of operation as licensed.
    • For example, an owner of an LLC, licensed as "Doe Construction, LLC" could not contract in their individual name, "John Doe" as a sole proprietor or add " DBA Doe Construction, LLC". If a contractor has different divisions under the licensed entity or parent company for accounting purposes, they cannot contract in the names of these divisions, unless they have obtained a separate license for each.
  • Obtaining a second or additional license requires all the same requirements of licensure, except, the exams do not have to be retaken.
  • A change in ownership requires a new license application.
    • A license cannot be transferred from one entity to another (cannot have a license in Jones, Inc. and transfer to Smith, Inc., unless they are the very same and evidenced by the Secretary of State's amended charter).

Note: Do not contract in the revised until revision has been approved.

 

*See "Electrical" Licensing Resources (includes license information for projects less than $25,000)

**See "Plumbing" Licensing Resources (includes license information for projects less than $25,000)

 

 

 

PERMITS, LOCAL GOVERNMENT AND OTHER LICENSING AGENCIES

State contractor license requirements do not exempt local government regulations or other state agency requirements; always check with the local municipalities for their permit and inspection requirements.  Some areas may not have a permit or local license agency for inspections, however, the state licensing law requirements still apply. The Divison of Fire Protection performs residential building, electrical and plumbing inspections for many areas without local codes enforcement. In addition, you may need licenses and/or certifications from other Tennessee agencies or Regulatory Boards. Please also see our "Valuable Resources" section on the web for more guidance. Business tax licenses are required by each county/city and may be obtained by the State's (Tennessee Department of Revenue) office.

 

SECOND/ADDITIONAL CONTRACTOR'S LICENSE

Contractor's who currently hold a Tennessee contractor's license and need another license, due to having one of the following: Having an additional business/subsidiary; change in ownership; merger; or reorganization, they would need to complete the new license application and follow all steps (the exams would not need to be retaken IF the Qualifying Agent (QA) is a majority owner of the new entity or remains a full time employee with only one licensed entity).

 

The law requires a contractor's license application to be completed for the following pursuant TCA 62-6-111:

(1) Contractor applying for new license;

(2) When obtaining a second or additional license (when having more than one business entity);

(3) *Reinstatement of an expired license (over 12 months, cannot renew);

(4) *Change in ownership (partnership dissolved, new in-coming stockholders, etc.); and

(5) *Reorganization of the licensed entity

 

If there has been no change in ownership and requesting only a name change or mode of operation change, see the "Revision" section of the "Forms and Downloads" for instructions on obtaining an amended license.

 

 

REINSTATEMENT OF EXPIRED LICENSE

Contractor's failing to complete the license renewal within 12 months of the expiration date, would need to complete the new license application. All steps must be followed with the exception of the exams; not required to be retaken if remained active in the industry for the past two (2) years.

 

Summary of Reinstatement Instructions

To reinstate a contractor’s license expired more than 12 months, a contractor must: complete the “Contractor’s License Application”; select “Reinstatement” on page one (1); and list the license ID# of the expired license.    When reinstating a contractor’s license, you may apply for this new reinstated license with a name change, change in mode of operation, license limit or classification. All the steps to reinstating a contractor’s license are the same as obtaining a new license, with the exception of the exams.  The license does not have to be reinstated the very same as prior and may be in another name; mode of operation; monetary limit or classifications.  However, the license ID number will remain the same as the expired license.  Do not use the license until approved.  May check status of pending application from the “License Search” at our website:  /commerce/boards/contractors/

 

Exam Information for Reinstatements

A. Exam(s) Required

The *exams would be required to reinstate a license:

  • If the Qualifying Agent (QA) is no longer with the entity
  • The license has been expired more than 24 months

*May request waiver if the original QA has remained active in the industry (such as working for another contractor; working in another state; performing work where a license is not required), then you may supply a written request to waive the trade exam(s).  Note:  It is up to the Board to determine whether the exam would need to be retaken on waiver requests and they would make this decision upon reviewing the complete application at the Board meeting; staff cannot make this determination.

 

B. Exam Not Required (Waived)

The exams would not be required or may request to be waived if:

  • The original Qualifying Agent (QA) is still with the company, and
  • License has not been expired more than 24 months;
    • If it has been more than 24 months, if the QA has been active in the industry by working for another contractor, as a subcontractor or in another state, may request to be waived.

GENERAL INFORMATION

 

  • 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, HVAC and masonry subcontractors. Geothermal license information may also be required to be listed on the outside of the bid envelope.

 

  • Subcontractors:  A contractor’s license is NOT required for subcontractors, those bidding directly to a licensed contractor and not the owner, for projects such as:  painting, masonry, roofing, etc., UNLESS, the subcontractors are performing mechanical, plumbing, HVAC, electrical, and masonry, as these trades are required to obtain a "Contractor" license for projects $25,000 or more; masonry if over $100,000. (See "bidding" requirements for subcontractors.) Effective July 1, 2010, Masonry contractors must be listed on the outside of the bid envelope for projects $100,000 or more (including materials and labor). The LMC (Licensed Masonry Contractor) exam may be taken after September 1, 2010 and is required by January 1, 2011 in order to be listed on the outside of the bid envelope or to perform work.

 

  • Joint Ventures: All contractors must be licensed to contract as a joint venture and may combine their monetary limit to bid a project. However, they must have the classification on their license which is incidental and an essential part of the total project. It is advised to always include the license information of all parties on a joint venture; must be in the exact names as licensed. Joint Venture rule is 0680-1-.11 and may be reviewed from the Laws, Rules and Regulations section of the website.

 

  • Federal Projects: A state license is not required for 100% federal projects (all federally funded and on federal land), unless required by the federal government awarding authority. See AG opinion 92-39 .

 

  • Violations: A contractor who contracts, offers to engage or obtains a permit 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, may not receive a license for six months, cannot participate in any re-bidding of the project, and subject to civil penalties. Bidding requirements entail listing the license name, number, expiration date and the classification pertaining to bid, on the outside of the bid envelope. (Refer to T.C.A. §62-6-119.)

 

  • Deadline Dates for Board Meeting - Calendar:  The Board is required to approve all contractor license applications and requests for revisions at their regularly scheduled meetings, which is during the months of January, March, May, July, September and November; deadline to submit a contractor license application is the 20th day of the month prior to the Board meeting. The deadline date to submit a Revision to an existing license, is the last day of the month prior to the Board meeting. For example, to have your application reviewed at the November 17th board meeting, the board office must receive by October 20th. (See Rule 0680-1-02 (2) and 0680-1-.14(1) at the Laws, Rules and Regulations section of the website.)

 

  • Public Information - Files with the Board are considered public information, with the exception of the "Financial Statement" and it is considered confidential by law T.C.A. 62-6-124; the "Guaranty Agreement" may be released if it is active (used to obtain the monetary limit upon first obtaining the license or was required by the Board in order to renew. Must submit a request in writing to have the Guaranty removed). "Social Security" numbers are redacted and not released. License applicants are required to provide their Social Security Number (SSN) to be used for identification purposes, only, and will not be a part of public record. This is under the authority of 42 U.S.C. 666.

OTHER LICENSES REGULATED

 

The following are other licenses issued by our office and most do not require Board approval. Issuance takes usually less than a few weeks.

 

Home Improvement- This license is required in the following counties:  Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford and Shelby, for remodeling projects from $3,000 to less than $25,000.  For more information, contact the Home Improvement section at (615) 532-3994 or 1-800-544-7693, or review information on Remodeling. (Note: An entity with a "Contractor's" license with a residential classification (BC-A) or commercial (BC or BC-B) is exempt from obtaining an additional license as a Home Improvement contractor.)

 

Limited Licensed Electrician (LLE) license is required in counties who do not perform their own inspections and licensing for electrical wiring projects less than $25,000.  Contact our LLE licensing section at 1-800-544-7693 or (615) 253-2144, or download application. (Note: An entity with a "Contractor's" license, with an electrical classification (CE or E) is exempt from obtaining an additional license as a LLE.)

 

Limited Licensed Plumber (LLP) license is required for projects less than $25,000 (as of January 1, 2006).  Must also obtain local permits and adhere to their licensing requirements, such as exams and fees.  Contact our LLP licensing section at 1-800-544-7693 or (615) 532-3994. (Note: An entity with a "Contractor's" license, with a plumbing classification (CMC or CMC-A) is exempt from obtaining an additional license as a LLP.)

 

HVAC - Check with your local codes office. There is not a specific license for HVAC projects, less than $25,000, with our Board. Projects $25,000 or more must obtain a contractor's license with the CMC or CMC-C classification, as a prime or subcontractor. If operating in a county requiring a Home Improvement license, check to see if a trade specific license is also required or HVAC less than $25,000.

 

Pre-Licensing Contractor Exam Providers

Schools as a Pre-Licensing Contractor Exam Provider must be licensed as an approved provider by the Contractors Board, before offering prep courses online or workshops.

 

  • If you take any class and notice the provider is violating the law, please contact us. Violations of the law include: providing exact questions and answers from the exam; guaranteeing passing the exams, encouraging to take exams for licenses not needed or in an area not experienced (in a means to sell more books); referring you to a CPA or assit in preparing your financial statement; or if they are not listed on the approved provider list, please contact us, as they may be in violation of the law.

 

Applicants are not required to take an exam prep class. The contractor exams are only offered by PSI.

VALUABLE RESOURCES

 

For information relative to the construction industry, please see the "Valuable Resources" on our website.

 

 

CONTRACTOR'S RENEWAL, RETIREMENT AND REVISIONS

 

RENEWAL

Licenses are issued for two (2) years and renewals are mailed out 90 days prior to expiration date; renewal is due 30 days prior to expiration to the expiration date to prevent contracting unlicensed which is a violation (contractors working on an expired license may not be entitled to recover monies owed on a project). If you do not receive a renewal in the mail, you may download from our website. Online renewal process is not available at this time. Contractors are required to submit proof of insurance (general liability and workers' compensation), an affidavit, and a financial statement to support their current monetary limit. The financial statement may be prepared by the contractor, and does not have to be prepared by a CPA as long as their limit is $1,500,000 or less. For those with a limit in excess of $1,500,000, a "Reviewed" CPA financial statement is acceptable for renewal instead of an "Audit". To check the status of your license, you may login at the "License Search".

 

RETIREMENT

Contractors who are not currently working, may place the license in "Retirement" in lieu of renewing, to retain renewal rights (renewal rights expire after 12 months). Retirement may be on an annual basis; biennial basis; retired with a maxium of seven (7) consecutive years; or as long as the license has an active status, it may be retired anytime by providing the $25.00 retirement fee for each year.

 

  • A contractor may place their active license into retirement, anytime after renewing the license (such as, due to canceling insurance while not working) or prior to the license expiring;

 

  • If the contractor's license has expired (less than 12 months), they may retire by submitting the renewal and lates fees; plus the retirement fee;

 

  • Contractors with a "Retirement" status are considered "Inactive" and not licensed to perform work in an amount where a license is required;

 

Contractors may take the license out of retirement any time by completing the renewal.

  • If bringing a contractor's license out of retirement during the second year of the renewal cycle, the law does not provide a means to waive one year of the renewal fee. For example, a license with an expiration date of 3/31/2012 (2012 Renewal) was retired on March 1, 2012 for two years with a retired expiration date of 3/31/2014, then if the license is reactivated on June 1, 2013, the contractor would be required to pay the 2012 renewal fees ($200) when bringing out of retirement and the license expiration date would remain the same as 3/31/2014 (after renewing the 2012 renewal).

 

REVISIONS

Revisions to change the name on the license, mode of operation, increase the monetary limit or add a classification may be requested by completing revision forms from the "Forms and Download " of the website, which includes all instructions.

 

 

Reciprocation and other state licensing information may be obtained from our "Valuable Resources" website or directly at NASCLA for all the states information.

 


RESOURCES

 

Applications - Forms & Download Application forms and instructions to obtain a new license; revise a current license (raise limit, add classes, change mode of operation, etc.,) or renew

Architect & Engineer's Design Manual [pdf] (Design/Build Contractor Information)

Bidding Requirements [pdf]

Business Licenses

CCTV/Low Voltage/Alarm Systems

Call Before You Dig

Classifications for Contractors with Exam Requirements

Code Books for Exam (PSI Bookstore)

Code Classes for New Statewide Codes (Free!)

"Contractors Guide to Business, Law & Project Management" (Tennessee Publication for Exam)

Code - Residential Building Program (Eff. 10/1/10)

Design/Build Contractors (Architect & Engineers License Board)

Electrician and Inspections

Exam Resources

>>NEW! Exam Updated Codes (Eff. March 15, 2012)

>>Exam (CIB - Candidate Information Bulletin) [pdf]

>>Exam (PSI Online Site)

>>Exams for License Classifications [pdf]

FEIN (Federal Employement Identification Number)

FAQs - Frequently Asked Questions [pdf]

Governor's Office of Diversity Enterprise

Hardship Requests [pdf]

Homebuilding Permits and Inspections

Insurance Requirements (General Liability and Workers' Comp) [pdf]

>>See also "Workers' Compensation" Resource

>>Public Notice from Contractors Board

Laws

Low Voltage/CCTV/Security Camera/Alarm Licenses

Lead Based Paint Removal Certification (TDEC)

Legislation Updates (2009) [pdf]

Legislation 2010

License Classifications [pdf] (Resource to check classification for bidding and exam requirement)

License Search Tips [pdf]

Masonry [pdf]

Meeting Schedule

National License Resource (NASCLA)

Reciprocation (Trade Exam Waiver Agreement with States) [pdf]

RECOVERY.gov

Renewal Forms

Revenue (Business Tax License)

Retirement of License [pdf]

Revision/Change Request Forms

Rules & Regulations (Chapter 0680)

Schools - Exam Prep

Secretary of State (Corporation, LLC, Partnership Registration)

Valuable Resources (Industry Links, Laws, and General Information)

WAP - Weatherization Contractor

Workers' Compensation Insurance (See also "Insurance" Resource)

 

Subcontractors - Electrical, plumbing, HVAC, and mechanical subcontractors are required to obtain a "contractor's" license for projects $25,000 or more. Masonry contractors are required to be listed on the bid envelope as of July 1, 2010; must be licensed with a LMC classification to be listed on the bid envelope and perform work, for projects $100,000 or more (including materials and labor) by January 1, 2011. Geothermal bids required the Well Driller (TDEC) license to be listed on the outside of the bid envelope.


Contractor's - Main website

 

Staff Directory

 

 

Notice: The Tennessee Department of Commerce and Insurance is committed to principles of equal access and affirmation action. Contact the EEO or ADA Coordinator at (615) 741-2177.