CONTRACTORS LICENSE

Congratulations on your decision to become a licensed contractor with the State of Tennessee!  We know the importance of a license toward the success of your livelihood and are here to help.  A state "contractor" license is required before offering a price, bidding or contracting projects, in excess of $25,000. Licensing is approximately a 4 to 6 week process, depending when the Board meets (refer to the Board calendar); and how long it takes you to complete the application process.  

Contractors are assigned classifications and monetary limits; limit should cover the total project and contracts may not be split to circumvent the monetary limit law. Classification should cover 60% of the total project.  

Contractors may apply for an additional or second license; reinstatement of expired license; change in owners; or reorganization due to bankruptcy, by completing the "Contractor License Application".

Licensees may apply for "Revision" to their license, such as increasing the monetary limit; adding a classification; or changing name or mode of operation.

You may refer to our main website for other licenses to perform work "less than $25,000" such as  remodeling, electrical and plumbing. 

HOW TO BECOME A LICENSED CONTRACTOR

(Detailed steps are in the "Contractor License Application" and may be downloaded from our website at:  [Forms & Downloads]

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

• Contractor license applicants must register with PSI, Inc. ( refer to the “Candidate Information Bulletin”) to take the "Business and Law" examination and any applicable “Trade” examination. Exam Information is available on their website at www.psiexams.com ) 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: Contractors.state.tn.us Preapproval to take the exams is only required for those taking the the plumbing CMC-A or CMC exam.
• 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;
• Provide a “Reference” letter from a past client, employer, or  codes official;
• Corporations and Limited Liability Companies (LLC) must register their charter  with the Tennessee Secretary of State, who may be contacted at (615) 741-2286 or information available at:  www.state.tn.us/sos/
• Workers Compensation Insurance is required for contractors with one (1) or more employees;
• Must provide proof of General Liabiltiy Insurance (see application for coverage amount)
• 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;
• A personal interview with the Board may be required and these meetings are held during the months of January (Nashville), March (Nashville), May (Memphis), July (Nashville), September (Knoxville) and in November (Nashville).  (Licenses require Board approval for issuance.) 
• If you are licensed in one of the reciprocating states, Alabama, Arkansas, Louisiana, Mississippi, North Carolina or South Carolina, the trade exam may be waived if you are domiciled in one of these states or if the exam is comparable to PSI Services, LLC (Tennessee's current exam vender). These are the only states in which Tennessee has an exam waiver agreement. More information is available on the "Reciprocation" section on our website.

Limited License BC-A/r

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.

Note: The limited license will soon be changed for issuance limited to four years; (issued for two years and may renew once). Prior to the second renewal, the limited contractor will be required to revise their classification to a BC-A. More information is available at "BC-A/r" and is on the Forms and Applications section of the web.

A Contractor's license is needed for the following, prior to bidding, contracting, offering or negotiating a price:

• $25,000 or more for the total project
• Subcontractors who perform $25,000 or more in electrical, mechanical, plumbing and HVAC
• Construction Management of any kind, where the value of the project exceeds $25,000

*(Please contact the local county/city permit offices for their license requirements)*

Contracting 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 T.C.A. §62-6-102.)

License Classification and Monetary Limit involves designating a “limit” or amount a contractor is approved to contract and a “classification” or type of  license such as:  residential, commercial, industrial or building subcategories, demolition, carpentry, masonry, landscaping, etc., or electrical; mechanical; plumbing; HVAC; municipal utility; highway, railroad or airport (HRA); environmental specialties; and specialties for installation of equipment, computer audio/video cables; or specialties for mowing, tree triming, etc. (see Rule 0680.1-.16).

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.

Other 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 and electrical.

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:  The Board meets during the months of January, March, May, July, September and November; deadline to submit application for the meeting is the 20th day of the month prior to the Board meeting.

OTHER LICENSES REGULATED

Home Improvement license is required in the following counties:  Bradley, Davidson, Hamilton, Haywood, Johnson, Knox, Robertson, Rutherford and Shelby, for remodeling projects from $3,000 to less than $25,000.  For more information, contact the Home Improvement Commission at (615) 532-3993 or 1-800-544-7693 or review information on Remodeling with the Home Improvement Commission.

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 1-800-568-0649 or (615) 253-2144 or download application and exam at:

http://state.tn.us/commerce/boards/contractors/formsandapps.html

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 or at: 

http://state.tn.us/commerce/boards/contractors/formsandapps.html

Pre-Licensing Contractor Exam Providers

Effective July 1, 2007, schools offering pre-licensing contractor classes must be approved by the Contractors Board! 

You may also review the **steps below to obtain a contractor's license (these instructions are also located in the application). Note: These steps are not required to be perfomed in a certain order.

NOTE:  Do not bid, offer a price, negotiate or contract until you are granted a license!  A contractor who 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 or taken off the construction project, license held for six (6) months, could not participate in any re-bidding of the project and subject to civil penalties. 

The deadline date to submit a contractor's license application is the 20th day of the month before the Contractors Board meeting. The Board meets in January, March, May, July, September and November.

**Click on the following links to review the step by step process:    Step 1 (Testing), Step 2 (Financial Statement), Step 3 (Reference Letter/Workers Compensation Insurance), Step 4 (Corporations & LLC's), Step 5 (Application, Signatures, and Notarize), Step 6 (Submit Application & $250 fee), Step 7 (Board Review), Final Step (Issuance of License),

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