Tennessee Contractor License Types
| License Type | Application Fee | Annual Renewal | Bond |
|---|---|---|---|
| Building Contractor (Combined) Full building contractor classification covering residential, commercial, and industrial construction. Requires the Business & Law exam plus a combined BC trade exam covering all building categories. Includes authority over all 34 BC subcategories and MU/MU-B (municipal utility and sewer). | $250 | $200 every 2 years (late fee $20/month during 12-month grace) | Optional in lieu of Guaranty Agreement: $500,000 bond (limits <$3M) or $1,000,000 bond (limits >$3M) |
| Residential Contractor Limited to construction, remodeling, repair, or improvement of 1-, 2-, 3-, or 4-family residences not exceeding three stories, plus accessory structures. Requires Business & Law exam and the BC-A Residential Trade Exam. Residential licensees must complete 8 hours of Board-approved continuing education at each biennial renewal. | $250 | $200 every 2 years | Same bond-in-lieu options as BC |
| Residential — Limited License (Restricted) Restricted residential license for projects under $125,000. Applicants may complete a Board-approved limited license course at a Tennessee community college or vocational school in lieu of the BC-A Residential Trade Exam and Business & Law Exam. No 10% monetary tolerance, no joint ventures, and contract/permit value cannot exceed the assigned monetary limit. | $250 | $200 every 2 years | |
| Residential / Small Commercial Combined residential and small commercial classification for projects under $750,000. Residential CE requirement applies. | $250 | $200 every 2 years | |
| Commercial Contractor Authorizes bidding on and performing commercial building projects without dollar cap (subject to the contractor's CPA-determined monetary limit). | $250 | $200 every 2 years | |
| Industrial Contractor Authorizes industrial construction work (subject to the contractor's CPA-determined monetary limit). | $250 | $200 every 2 years | |
| Mechanical Contractor (Full) Combined plumbing and HVAC mechanical contracting. Requires Board pre-approval before sitting for the trade exam ($50 pre-approval fee). | $250 | $200 every 2 years | |
| Plumbing & Gas Piping Plumbing and gas piping mechanical work. Requires Board pre-approval before the trade exam ($50 pre-approval fee). | $250 | $200 every 2 years | |
| Process Piping Process piping mechanical work. No trade exam required. | $250 | $200 every 2 years | |
| HVAC / Refrigeration / Gas Piping HVAC, refrigeration, and gas piping work. Trade exam required (no pre-approval needed). | $250 | $200 every 2 years | |
| Fire Sprinkler Fire sprinkler contracting classification under the mechanical umbrella. | $250 | $200 every 2 years | |
| Electrical Contractor Covers all categories of electrical contracting. Trade exam required. Required for electrical subcontractors on portions $25,000 and up. | $250 | $200 every 2 years | |
| Licensed Masonry Contractor Masonry contracting classification; required for masonry subcontractors when total masonry cost (materials + labor) reaches $100,000 or more. Trade exam required. | $250 | $200 every 2 years | |
| Home Improvement Contractor Separate license for residential improvement work from $3,000 to $24,999. Required only in the nine BLC-designated counties: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby. Requires $10,000 proof of financial responsibility (surety bond or irrevocable letter of credit), general liability insurance, and workers' comp (or exemption). | $250 | $200 every 2 years | $10,000 (surety bond or irrevocable letter of credit) |
Processing time: Typically 30-90 days after a complete application is submitted. The Board meets monthly and reviews applications on a rolling basis; CMC and CMC-A classifications add a pre-approval step ($50 fee) before exam eligibility is granted. from application submission to license issuance.
Tennessee (TN) contractors are licensed at the state level by the Board for Licensing Contractors (BLC), which operates within the Department of Commerce & Insurance under Tennessee Code Annotated Title 62, Chapter 6. Any contractor bidding on or performing a project of $25,000 or more — residential, commercial, or industrial — must hold an active BLC contractor's license. Electrical, mechanical, plumbing, HVAC, and roofing subcontractors also need a BLC license once their portion reaches $25,000 (masonry subs at $100,000, roofing subs at any dollar amount since January 1, 2014). Licensure requires passing the Tennessee Business & Law exam (plus a trade exam for most classifications), documenting construction experience, and submitting a CPA-prepared financial statement that sets the contractor's monetary limit (10 times the lesser of working capital or net worth). Tennessee has trade-exam reciprocity with nine states: Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, Ohio, South Carolina, and West Virginia. A separate Home Improvement Contractor (HIC) license covers residential improvement work from $3,000 to $24,999 in nine designated counties. Unlicensed contracting is a Class A misdemeanor under TCA 62-6-136.
Step 1: Ask for the BLC License Number
Tennessee contractors are required to list their license ID number, classification, and expiration date on the outside of every bid envelope under TCA § 62-6-119 — this rule applies to every bid regardless of dollar amount, not just $25,000+ projects. Any legitimate contractor should hand over the license number without hesitation. If they won't, stop the hiring process.
Step 2: Look Up the License at verify.tn.gov
Tennessee's official license verification site lets you search every license issued by the Department of Commerce & Insurance, including contractors, home improvement contractors, and limited licensed electricians and plumbers. The record shows classification, status, monetary limit, expiration date, and any disciplinary actions.
Step 3: Confirm the Classification Covers Your Project
Tennessee uses a layered classification system (BC, BC-A, BC-B, BC-C, CMC, CE, LMC, etc.). The contractor's classification must cover at least 60% of the project work in order for them to legally bid. If they don't have a classification covering 60% but hold a commercial classification, they can bid but must subcontract every portion over $25,000 to a properly licensed contractor.
Step 4: Check the Monetary Limit Against Your Project Value
Every TN contractor license carries a monetary limit calculated as 10× the lesser of working capital or net worth on the CPA-prepared financial statement. A contractor cannot bid a single project above that limit (there's no 10% tolerance on restricted BC-A/r licenses). If your project value exceeds the contractor's monetary limit, the license is effectively invalid for your job.
Step 5: Verify Insurance — General Liability and Workers' Comp
Tennessee requires contractors to carry general liability insurance and workers' compensation coverage for all employees (construction industry). A contractor without a Certificate of Insurance on the job site is non-compliant under state law and can be fined. For out-of-state contractors, the workers' comp policy must have '3A' coverage designation, not just '3C'.
- General liability insurance — required at initial license and every renewal
- Workers' compensation — required for any construction employer with employees
- Out-of-state contractors need '3A' workers' comp coverage (home state policy)
- Get the Certificate of Insurance directly from the agent, not the contractor
Step 6: Check Complaint and Disciplinary History
The BLC investigates complaints against licensed and unlicensed contractors. Disciplinary actions — including license revocation or suspension — are part of the licensee's record on verify.tn.gov. Call the Board at (615) 741-8307 or (800) 544-7693 to ask about any pending investigations not yet visible online.
Tennessee Contractor Insurance Requirements
| Insurance Type | Requirement |
|---|---|
| General Liability | Required. Contractors must submit a current Certificate of Insurance for general liability at initial license and at every biennial renewal. |
| Workers' Compensation | Required for all construction-industry employers with employees. The Certificate of Insurance must be kept on file at the business and on every job site. Tennessee law allows injured workers of an uninsured subcontractor to 'go up the ladder' and pursue compensation from the general contractor, so GCs should collect and verify a COI from every sub. Out-of-state contractors need a policy with '3A' (home state) coverage; Tennessee does not accept '3C'-only policies. |
Tennessee Contractor Bond Requirements
Tennessee does not require every contractor to post a license bond. Instead, the BLC uses a CPA-prepared financial statement to determine the contractor's monetary limit (10× the lesser of working capital or net worth). Contractors who need to supplement a thin balance sheet can post a Contractor's License Bond in lieu of a Guaranty Agreement: $500,000 for monetary limits under $3M, or $1,000,000 for limits of $3M and above. Home Improvement Contractors (HIC) must separately post $10,000 in financial responsibility (surety bond or irrevocable letter of credit).
Tennessee Consumer Protections for Home Improvement
Tennessee law provides several important protections for homeowners hiring contractors:
- Tennessee's Home Solicitation Sales Act gives consumers 3 business days to cancel any sale signed at their home or any location that is not the seller's fixed place of business — the seller must provide a written notice of cancellation rights and refund within 10 days.
- Contractors cannot require more than one-third of the total project cost as an upfront payment.
- Every bid must list the contractor's name, license ID, classification, and expiration date on the outside of the bid envelope under TCA § 62-6-119 (applies regardless of dollar amount) — failure to do so means the bid must be rejected.
- The BLC can suspend, revoke, or refuse to renew a license for misconduct including failure to maintain workers' comp, failure to honor warranty obligations, or allowing an unlicensed contractor to pull a permit under the licensee's number.
- TCA § 28-3-105 sets a 3-year statute of limitations (4 years from notification) for structural defects in new construction; TCA § 47-2-314 establishes an implied warranty of workmanship.
- License verification is free and public at verify.tn.gov — every consumer can confirm status, classification, monetary limit, and disciplinary history before signing.
What Happens if You Hire an Unlicensed Contractor?
Hiring an unlicensed contractor in Tennessee puts you at risk:
- Unlicensed contracting on a $25,000+ project is a Class A misdemeanor under TCA § 62-6-136 — up to 11 months 29 days in jail and a $2,500 fine per violation
- Tennessee courts routinely refuse to enforce contracts signed by unlicensed contractors, so you may have no legal recourse to recover payments already made
- The BLC can hold (deny) a future license application for up to 6 months after learning of a violation, and can issue cease-and-desist orders
- Homeowner's insurance may deny claims for damage caused by unlicensed work
- An unlicensed contractor has no bond and no workers' comp obligation — if a worker is injured on your property, liability can flow back to you
- Mechanic's lien rights may be compromised or voided, leaving subcontractors and suppliers with recourse only against the homeowner
How to Report an Unlicensed Contractor in Tennessee
Report unlicensed contracting activity to the Tennessee Board for Licensing Contractors. Any person bidding or performing construction work of $25,000 or more without a valid BLC license is committing a Class A misdemeanor under TCA § 62-6-136. The Board investigates tips from consumers, code officials, and other contractors.
- Online complaint: tn.gov/commerce/regboards/contractors/consumer/complaint.html
- Phone: (615) 741-8307 or (800) 544-7693
- Email: Contractors.Home-Improvement@TN.Gov
- Mail: Board for Licensing Contractors, 500 James Robertson Pkwy, Nashville, TN 37243-1150
How to File a Complaint Against a Registered Contractor in Tennessee
The Board for Licensing Contractors investigates complaints against both licensed and unlicensed contractors. The Board cannot award money judgments or force repairs — those require civil court — but it can issue citations, fines, and license suspensions or revocations, and it creates a public record that protects future consumers.
You can file a complaint by:
- Online: File at tn.gov/commerce/regboards/contractors/consumer/complaint.html
- Phone: (615) 741-8307 or (800) 544-7693
- Mail: Board for Licensing Contractors, 500 James Robertson Pkwy, Nashville, TN 37243-1150
- Email: Contractors.Home-Improvement@TN.Gov (home improvement); Contractor.Renewal@tn.gov (general inquiries)
For financial recovery beyond what the Board can mediate, pursue civil court or (for HIC) file a claim against the contractor's $10,000 financial-responsibility bond or letter of credit.
Tennessee Contractor Bond Schedule
Tennessee's bond framework is tied to the financial-statement monetary-limit formula, not a flat across-the-board bond. Contractors choose between posting a bond, providing a Guaranty Agreement, or demonstrating sufficient working capital and net worth directly.
| License Type | Bond Amount | Notes |
|---|---|---|
| Contractor's License Bond (in lieu of Guaranty Agreement) | $500,000 (limits <$3M) or $1,000,000 (limits ≥$3M) | Optional. Bond must have a Power of Attorney from an A.M. Best-rated surety. Cannot be released for 1 year after license expiration or replacement. |
| Home Improvement Contractor Financial Responsibility | $10,000 | Required for all HIC licensees. Satisfied via a surety bond (with written power of attorney) or an irrevocable letter of credit from an FDIC-approved bank. |
| Line of Credit (working capital supplement) | Variable | An LOC applied at 100% to supplement working capital only. Drops to 50% if working capital or net worth is negative. |
| Guaranty Agreement (with supplemental financial statement) | Variable | Applied at 50% to supplement both working capital and net worth. Supplemental personal or parent-company statements need not be CPA-prepared. |
What Makes Tennessee Contractor Licensing Unique
$25,000 Licensing Threshold
Under TCA § 62-6-102, any person or entity that bids, negotiates, or performs construction work on a project of $25,000 or more (residential, commercial, or industrial) must hold an active TN contractor license. Electrical, mechanical, plumbing, HVAC, and roofing subcontractors need a BLC license on portions of $25,000 or more. Masonry subs need a license at $100,000+. Roofing subcontractors have been required to be licensed for any dollar amount since January 1, 2014.
Monetary Limit = 10× Working Capital or Net Worth
Every TN contractor license is capped at a monetary limit calculated as 10× the lesser of the contractor's working capital or net worth (per CPA-prepared financial statement). Unlimited status requires more than $300,000 in both working capital and net worth plus an Audited financial statement. Initial licensees above $3M need an Audited opinion; $3M and below needs a Reviewed opinion.
Home Improvement License Covers Only 9 Counties
Tennessee's Home Improvement Contractor (HIC) license applies only in Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby counties, for residential improvement projects from $3,000 to $24,999. Elsewhere in the state there is no separate HIC license — contractors either operate under the $25,000 threshold or obtain a full BLC contractor license.
Trade-Exam Reciprocity With 9 States
Tennessee waives the trade exam (but not the Business & Law exam, and not the license itself) for contractors in good standing in Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, Ohio, South Carolina, and West Virginia. The reciprocity scope varies by state (e.g., Arkansas is commercial/residential building only; South Carolina is general only; West Virginia covers Residential, Commercial, Industrial Building, Electrical, Mechanical, and Masonry). The NASCLA national commercial trade exam is also accepted.
Residential Continuing Education: 8 Hours per Renewal
Residential contractors (BC-A, BC-A/r, BC-A,b(sm)) licensed on or after January 1, 2009 must complete 8 hours of Board-approved Residential Continuing Education at each biennial renewal. Only one qualifying agent per license must complete the hours.
Unlicensed Contracting = Class A Misdemeanor
Bidding or performing work of $25,000 or more without a valid BLC license is a Class A misdemeanor under TCA § 62-6-136 — punishable by up to 11 months, 29 days in jail and a $2,500 fine per violation. The Board can also hold (deny) a future license application for up to 6 months after learning of a violation.
Tennessee Contractor License Fees
Frequently Asked Questions: Tennessee Contractor Licensing
How do I check a contractor's license in Tennessee?
Go to verify.tn.gov and search by name, license number, or business. The record shows the classification, status, expiration date, and monetary limit for every licensee regulated by the Tennessee Department of Commerce & Insurance, including BLC contractors, home improvement contractors, and limited licensed electricians and plumbers. You can also call the Board at (615) 741-8307 or (800) 544-7693 to verify by phone.
What's the dollar threshold that requires a Tennessee contractor license?
$25,000. Under Tennessee Code Annotated § 62-6-102, any person or entity bidding, negotiating, or performing construction work on a project of $25,000 or more must hold a valid BLC contractor license. This applies to residential, commercial, and industrial work. Electrical, mechanical, plumbing, HVAC, and roofing subcontractors also need a license once their portion reaches $25,000. Masonry subcontractors need a license at $100,000 or more.
What are the main contractor license classifications in Tennessee?
The big ones are BC (full building contractor), BC-A (residential only), BC-B (commercial only), BC-C (industrial only), BC-A,b(sm) (residential + small commercial under $750,000), BC-A/r (restricted residential under $125,000), CMC (full mechanical), CMC-A (plumbing & gas piping), CMC-C (HVAC/refrigeration/gas piping), CE (electrical), and LMC (masonry). Each carries a CPA-determined monetary limit that caps the single project value the contractor can bid.
What is Tennessee's Home Improvement Contractor (HIC) license?
The HIC license covers residential improvement work from $3,000 to $24,999. It's only required in nine counties: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby. HIC applicants must post $10,000 in financial responsibility (surety bond or irrevocable letter of credit), carry general liability insurance, and carry workers' comp or file an exemption. Application fee is $250, renewal $200 every two years.
Does Tennessee require contractors to post a surety bond?
Not universally. Unlike states with a flat license bond, Tennessee sets each contractor's capacity through a CPA-prepared financial statement. Contractors who need to supplement their working capital or net worth can choose to post a Contractor's License Bond in lieu of a Guaranty Agreement: $500,000 for monetary limits under $3M, or $1,000,000 for limits of $3M and above. Home Improvement Contractors must separately post $10,000 in financial responsibility.
How is a Tennessee contractor's monetary limit calculated?
10 times the lesser of working capital or net worth, as shown on a CPA-prepared financial statement. Example: $15,000 working capital and $200,000 net worth = $150,000 monetary limit (because working capital is the lesser figure). Unlimited status requires more than $300,000 in both working capital and net worth, relevant experience, and an Audited financial statement prepared under GAAP.
What exams does Tennessee require for a contractor license?
Every applicant must pass the Tennessee Business & Law exam (administered by PSI Services, LLC). Most classifications also require a trade exam — for example, the BC-A Residential Trade Exam for BC-A applicants. CMC (full mechanical) and CMC-A (plumbing & gas piping) applicants must get Board pre-approval before sitting for the trade exam ($50 fee). The Business & Law exam, once passed, never has to be retaken even if the license lapses.
What's the penalty for unlicensed contracting in Tennessee?
Under TCA § 62-6-136, bidding or performing contractor work of $25,000 or more without a license is a Class A misdemeanor — punishable by up to 11 months, 29 days in jail and a $2,500 fine per violation. The Board can also hold (deny) a future license application for up to 6 months after learning of the violation, and courts will often refuse to enforce contracts signed by unlicensed contractors.
Which states have reciprocity with Tennessee?
Tennessee has trade-exam waiver agreements with Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, Ohio, South Carolina, and West Virginia. The scope varies by state (e.g., Alabama covers General, Electrical, Residential, and HVAC; South Carolina covers General only; Arkansas covers commercial/residential building only; West Virginia covers Residential, Commercial, Industrial Building, Electrical, Mechanical, and Masonry). Reciprocity waives the trade exam — applicants still need to apply for a Tennessee license, pass the Business & Law exam, and submit a CPA-prepared financial statement. The NASCLA national commercial trade exam is also accepted.
How long is a Tennessee contractor license valid?
Two years. Renewal notices are mailed 90 days before expiration. The renewal fee is $200. Residential contractors (BC-A, BC-A/r, BC-A,b(sm)) must complete 8 hours of Board-approved continuing education before each renewal. There's a 12-month grace period to renew after expiration (with $20/month late fee), but you cannot legally perform work during the grace period — an expired license is an invalid license.
How do I file a complaint against a Tennessee contractor?
File a complaint with the Board for Licensing Contractors online at tn.gov/commerce/regboards/contractors/consumer/complaint.html, by phone at (615) 741-8307 or (800) 544-7693, or by mail to 500 James Robertson Pkwy, Nashville, TN 37243-1150. The Board investigates both licensed and unlicensed contractors and can issue citations, suspend or revoke licenses, and refer cases for criminal prosecution. The Board cannot award money damages or force repairs — for that, you need civil court or a claim against the contractor's HIC financial-responsibility bond if applicable.
Sources
Facts on this page were verified against the following primary sources on April 20, 2026. Licensing laws, fees, and bond amounts change — always confirm with the official board before acting.
- Tennessee Board for Licensing Contractors — Home — Primary state regulator for contractors, home improvement contractors, limited licensed electricians, and limited licensed plumbers. (retrieved 2026-04-20)
- How to Apply — Contractor License — Official BLC instructions for the contractor application: exams, experience, fees, financial statement tiers. (retrieved 2026-04-20)
- Classification Outline with Trade Exam Requirements — Full list of BC, CMC, CE, LMC, MU, and subcategory classifications with trade-exam indicators. (retrieved 2026-04-20)
- Reciprocity / Trade Exam Waiver Agreements — States with trade-exam reciprocity: AL, AR, GA, LA, MS, NC, OH, SC, WV — with scope of each waiver. (retrieved 2026-04-20)
- Renewal Timeframe & Requirements — Biennial renewal fee ($200), 12-month grace period, $20/month late fee, and financial-statement rules at renewal. (retrieved 2026-04-20)
- Bidding FAQs (TCA 62-6-119 bid envelope rules; subcontractor thresholds) — Roofing sub licensing since 2014; masonry sub threshold $100,000; 60% classification-coverage bidding rule; Class A misdemeanor for unlicensed bidding. (retrieved 2026-04-20)
- Home Improvement — How to Apply — HIC scope, nine designated counties, $10,000 financial responsibility, fees, and insurance rules. (retrieved 2026-04-20)
- Increase Monetary Limit — Financial Statement Requirements — Monetary-limit formula (10× lesser of working capital or net worth), Reviewed vs Audited tiers, LOC and Guaranty Agreement rules. (retrieved 2026-04-20)
- BLC Guaranty Agreement Policy — Current authoritative source for contractor's license bond amounts in lieu of Guaranty Agreement: $500,000 for monetary limits less than $3,000,000; $1,000,000 for limits of $3,000,000 and above. Includes surety rating and release rules. (retrieved 2026-04-20)
- Continuing Education (RCE) Requirement — 8 hours of Board-approved residential CE at each renewal for BC-A, BC-A/r, BC-A,b(sm) licensees after January 1, 2009. (retrieved 2026-04-20)
- Workers' Compensation — Certificate of Insurance Requirements — Construction-industry workers' comp mandate, '3A' coverage for out-of-state contractors, $50-$5,000 penalty range for non-compliance. (retrieved 2026-04-20)
- Consumer Guidelines for Home Repair Contracting (TN AG) — Consumer checklist: verify via (800) 544-7693, 3-bid rule, up-front payment cap, written contract requirements. (retrieved 2026-04-20)
- Home Solicitation Sales Act — 3-Day Cooling-Off Period — 3 business-day cancellation right, seller refund timeline, and one-third maximum up-front payment rule. (retrieved 2026-04-20)
- File a Complaint — Board for Licensing Contractors — Consumer complaint process for licensed and unlicensed contractor activity. (retrieved 2026-04-20)
- Verify a Tennessee License (verify.tn.gov) — Official DCI license lookup across contractors, HIC, LLE, LLP, and other professional boards. (retrieved 2026-04-20)
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