Contractor License Requirements

What are the contractor license requirements In Tennessee? If you bid on a construction job or supervise a project  that is worth $25,000.00 or more, you must be a licensed contractor. This includes subcontractors performing electrical, mechanical, plumbing HVAC, and roofing when their portion of the job is $25,000.00 or more. Masonry subcontractors need to be licensed when their portion of the job is $100,000.00 or more.

The Tennessee Contractors Licensing Act T.C.A. §62-6-102  specifically defines a Contractor as:

(4)(A) (i) “Contractor” means any person or entity that undertakes 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 for which the total cost is twenty-five thousand dollars ($25,000) or more; provided, however, with respect to a licensed masonry contractor, such term means and includes the masonry portion of the construction project, the total cost of which exceeds one hundred thousand dollars ($100,000), materials and labor;

(ii) “Contractor” includes, but is not limited to, a prime contractor, electrical contractor, electrical subcontractor, mechanical contractor, mechanical subcontractor, plumbing contractor and plumbing subcontractor, masonry contractor, and roofing subcontractor where the total cost of the roofing portion of the construction project is twenty-five thousand dollars ($25,000) or more;

(iii) If the cost of a project exceeds twenty-five thousand dollars ($25,000), “contractor” also includes a construction manager of any kind, including, but not limited to, a residential construction manager, construction consultant, architect or engineer who conducts or provides any activity or service described in this subdivision (4) other than normal architectural and engineering services.

A Contractor’s license will be classified according to the type of building (i.e. residential, commercial or industrial) and carries a monetary limit. This monetary limit must cover the total contract price.

Any person or company that misrepresents itself as a licensed contractor, or who simply acts in the capacity of a licensed contractor while unlicensed violates the Tennessee Consumer Protection Act (T.C.P.A.) and  is subject to potentially serious civil penalties such as claims for attorney’s fees and treble damages. In addition to the damages available under the T.C.P.A., an unlicensed contractor is only allowed to recover his documented expenses and cannot place a lien on residential real property.

Before you hire a contractor, verify that they are licensed and have the appropriate license type and monetary limit for your project by going to:  http://verify.tn.gov. If you have already hired an unlicensed contractor, schedule a consultation with me today.

This information is provided for informational purposes only and is not to be considered legal advice. Prior to relying on this information, please contact boylanlegal.com for a consultation.

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