Step 1: Determine Which License Applies
Licensing depends on the total cost of your project—including materials, labor, and profit. Tennessee regulates four main contractor licenses:
Home Improvement License
If your project costs between $3,000 and $24,999 and you live in Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, or Shelby County, the contractor must have a Home Improvement License. This license covers residential remodeling and repairs, including driveways, pools, porches, landscaping, fencing, roofing, painting, and other improvements.
Contractor License
For projects totaling $25,000 or more, a Contractor’s License becomes mandatory. These licenses include both a classification (such as BC, BC-A, or BC-B) and a monetary limit based on the contractor’s experience, insurance, and financial standing. The license limit must meet or exceed your project’s total value. For example, a contractor with a $70,000 limit can’t legally take on a $150,000 job. Prime contractors and certain subcontractors—especially those handling electrical, mechanical, plumbing, HVAC, roofing, and large masonry projects—must be properly licensed.
Step 2: Always Verify Their License
Before you sign anything, verify the contractor’s license at verify.tn.gov. In addition, check their license pocket card to confirm the type and name match your project. Remember, only licenses issued by the Board of Licensing Contractors are valid for these jobs.
Step 3: Make Sure Insurance Is Current
Every licensed contractor must provide proof of General Liability insurance. If they have employees, Workers’ Compensation insurance is also required. You should always confirm that their insurance coverage is active and hasn’t been canceled.
Step 4: Report Unlicensed or Improper Work
If you discover someone working without the right license, take action. File a complaint using the Online Complaint Form. You can report issues for residential, commercial, and industrial projects, including fraud, dishonest dealing, or incomplete work.
Need help with contractor licensing or a dispute? Collins Legal’s real estate lawyers have over a decade of experience guiding clients through Tennessee’s licensing requirements. Call us for a consultation and protect your investment with confidence.
