โข 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.
โข The Business and Law exam is required for licensure in every Contractor classification
โข 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).
โข A reviewed financial statement is required for monetary requests of $3,000,000 or less.
โข 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.
โข All contractors with 1 or more employees are required to carry Workerโs 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 commercial building contractor is authorized to bid on and contract for the construction, erection, alteration, repair or demolition of any building structure for use by the general public, including residential construction with more than four (4) units or greater than three (3) stories in height.
A license is required for jobs 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 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.
NASCLA Accredited license is accepted in the following states: Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, Oregon, South Carolina, Tennessee, Utah, Virginia & the Virgin Islands.
West Virginia will accept the NASCLA exam scores for the West Virginia General Contractor, provided the NASCLA exam was passed after 11/1/2013.
Nevada will also accept the NASCLA exam scores if the exam was passed after 12/1/2013. This is for the same classification.
As of August 1, 2017, Arizona began accepting this examination in lieu trade examinations for the B-1 and B-2 General Commercial Contracting Classifications. As of November 21, 2017 Arizona also began administering the NASCLA exam.
As of 3/1/2019, Florida is accepting the NASCLA exam. Scores from the NASCLA exam are now acceptable for the Residential, Building, or General Contractor classifications. Applicants using the NASCLA exam will still be required to pass the Florida Business and Finance exams and meet all other application requirements.
Tennessee currently does not have Continuing Education Requirements for Contractors.
โข This is an open-book timed test with 100 questions and a 5-hour time limit.
โข In order to pass you must answer 73 questions correct (73%).
โข The exam fee is $57. If the exam is failed three times, the applicant will have to interview with the board before retesting.
โข 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 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 book for easy reference during the exam. You can sign up online or by calling our office at 1-800-992-1910.
