License Requirements for Tennessee Contractors Part 1
In Tennessee, licensing requirements for contractors vary depending on a project’s value. This includes the total dollar amount required for materials, labor, and profit. Contractors who violate these rules can be barred from obtaining a license for a set period of time, charged with a Class A misdemeanor, or issued a civil penalty of $500 depending on the specifics of the case. As a contractor, you can’t afford to be sidelined for an extended period of time. In seemingly no time, you could find your business closing its doors for good.
In this two-part article, a roofing lawyer in Tennessee will discuss licensing requirements for contractors. From license defense to litigation, our experienced attorneys are dedicated to fighting on behalf of the construction industry.
Most Projects Require a License
Due to its assigned classification and monetary limit, a contractor’s license is vastly different than other typical licenses. For any projects valued at $25,000 or greater, a valid contractor’s license is required. The Tennessee Board for Licensing Contractors regulates various contractor’s licenses, including:
- Home Improvement
- Limited Licensed Electrician
- Limited Licensed Plumber
General contractors and subcontractors must be licensed according to these rules. In Tennessee, the contractor dealing directly with the owner is designated as the general (or prime) contractor, which means all other contractors are considered subcontractors. Subcontractors only require a license if their portion of the contract is valued at $25,000 or more. This includes work involving electrical, mechanical, plumbing, HVAC, and roofing. Some types of subcontractors follow different rules, such as masonry subcontractors who are required to be licensed if their portion of a project is valued at or exceeding $100,000. Lastly, any construction manager overseeing a project must possess a valid contractor’s license.
A home improvement contractor’s license is different from your typical contractor’s license in the State of Tennessee. This type of license is required for any projects valued between $3,000 and $24,999 in nine counties, including:
If you want to remodel or repair a home (replacement, alter, conversion, modernization, improvement, or addition), you will need to first obtain a home improvement contractor’s license. Adding or changing driveways, swimming pools, porches, garages, fences, safety shelters, roofing, and other home improvement jobs may all require this license. Before you break ground on your next home improvement project, consult a roofing attorney in Tennessee to ensure that you have the proper licensing and are protected against potential legal action.
To learn more about license requirements for Tennessee contractors, read part two.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.