• The first step in the licensing process is to pass the exams. You will then submit an application to the state licensing board with required documentation.
• The Business and Law exam is required for licensure in every Contractor classification
• The monetary limit (limit per contract) is based on 10 times the lesser of the net worth or working capital or experience. (Working capital is current assets minus current liabilities and net worth is total assets minus total liabilities).
• A reviewed financial statement is required for monetary requests of $3,000,000 or less.
• A CPA audited financial statement is required for monetary requests exceeding $3,000,000. To obtain an unlimited license, applicants must have over $300,000 in both net worth and working capital.
• All contractors with 1 or more employees are required to carry Worker’s Compensation insurance. Every applicant will be required to provide a certificate of insurance proving an adequate amount of general liability insurance.
The requirements are as follows:
Monetary Limit = Minimum Insurance
Up to $500,000 = $100,000
$501,000 to $1,500,000 = $500,000
$1,501,000 to Unlimited = $1,000,000
A Residential/Small Commercial contractor may construct, remodel, repair, or improve any one, two, three or four family unit residences, and accessory use structures in connection therewith. They may also contract for commercial work that does not exceed $1,500,000.00 per project. This includes any building structure for use by the general public, including residential construction with more than for (4) units or greater than three (3) stories in height.
A license is required for any job over $25,000.
Applications may be obtained by contacting:
Tennessee Board for Licensing Contractors
500 James Robertson Pkwy, 1st Floor
Nashville, TN 37243-1150
Phone 615-741-8307
We offer application processing for Tennessee contractors applications for $299.00. The state application fee is $250. For additional information and state and federal requirements please call us at 1-800-992-1910
Important Contacts
Tennessee has a limited reciprocity agreement for several licenses with the following states: Alabama, Arkansas, Louisiana, Mississippi, North Carolina, and South Carolina for the trade exam. Candidates will still be required to pass the Tennessee Business and Law Management exam.
For more information on Reciprocity please click here.
Tennessee currently does not have Continuing Education Requirements for Contractors.
• This is an open-book timed test with 100 questions and a 5-hour time limit.
• In order to pass you must answer 73 questions correct (73%).
• The exam fee is $57. If the exam is failed three times, the applicant will have to interview with the board before retesting.
• To schedule your exam contact PSI at 1-800-733-9267.
Topics covered on the exam are site-work, footings, foundations, concrete, concrete reinforcement, masonry, carpentry, metals, roofing, associated trades, general code, plan reading, estimating, and OSHA safety.
American Contractors Exam Services offers a seminar to prepare you for the Tennessee Residential/Small Commercial Contractors exam. We also offer a seminar to prepare you for the required Business and Law Management exam. Our courses will help you highlight and tab your books for easy reference during the exam. You can sign up online or by calling our office at 1-800-992-1910.
