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Licenses are typically required for individuals and businesses that provide construction industry services.
This guide contains information about construction industry licensing in Tennessee.
Tennessee Department of Commerce and Insurance - Board for Licensing Contractors
Foreign Qualification is Prerequisite:
Yes
Financial Requirements:
To obtain an unlimited license, the contractor must show $300,000 in both working capital and net worth; experience, and an audited financial statement. An audit is not required at renewal to retain this limit.
Insurance Requirements:
Contractors must provide a certificate of insurance as proof of having general liability and workers' compensation insurance.
The certificate of insurance must include policy numbers, expiration date, and the "Board for Licensing Contractors" with address must be listed as the "Certificate Holder"
The coverage minimums for general liability insurance depend on the monetary license limit requested: Contractors requesting a monetary limit of up to $500,000 need at least $100,000 of coverage, contractors requesting a limit of between $500,001 and $1,500,000 need at least $500,000 of coverage, and contractors requesting a limit of $1,500,001 or more need at least $1,000,000 in coverage.
Workers' Compensation is required for all contractors applying for a license unless:
The contractor does not have any employees; and
The license owners/employer has met the criteria to be exempt or provided proof of registration as a "Construction Services Provider" with the Secretary of State.
Bond Requirements:
There is no general bonding requirement for a contractor's license, however, in some cases contractors are permitted to submit a bond in order to meet working capital or other requirements.
Notes:
A contractor's license is required for projects worth $25,000 or more when acting as either: A prime contractor; an electrical, mechanical, plumbing, HVAC, or roofing subcontractor; a masonry subcontractor on a project worth at least $100,000; or a construction manager on projects worth at least $25,000.
Unlimited licenses are available for contractors with at least $300,000 of working capital and a net worth of at least $300,000.
The application is due 20th of the month before the Board meets. The application must be received in the office by deadline date; not postmarked, to ensure it is prepped by the staff for review. The Board meets six (6) times annually during the following months: January (Nashville); March (Nashville); May (West TN); July (Nashville); September (East TN); and November (Nashville). Meeting locations are tentative and subject to change. See “Public Meetings Calendar” on the website. For example, in order to be reviewed at the January meeting, application would be due December 20th. If 20th is on a holiday/weekend, next business day is considered the deadline.
Notarize:
Required
Notes:
Applicants requesting a monetary limit of $3,000,000 or less must submit a financial statement reviewed by a CPA. Monetary limits of $3,000,001 or more require an audited financial statement prepared by a CPA.
Financial statements must be prepared according to GAAP. Compiled and income tax basis statements are not accepted.
An interview with a board member at the meeting may be required for the following: Qualifying Agent (QA) is not a majority owner and employed less than six (6) months; Experience – Insufficient amount listed for the monetary limit requested; and/or if there are issues such as: Complaint history; judgments; felony convictions; bankruptcy; etc., or failure to disclose such issues. Whenever an interview is required, the QA is required to interview. If the QA is not a majority owner, then both the QA and an owner; or QA and an officer, must both attend the board meeting. An admission letter of the time, date and location of the meeting will be sent to those required to interview.
Those required to interview, this is informal and takes no longer than 30 minutes. However, due to several contractors scheduled, there may be a timely wait. Board members in your field of expertise usually perform the interview. For example, an electrical Board member will interview those applying for an electrical license, and the mechanical contractor interviews the plumbing and HVAC contractors, etc. At the interview, the application is reviewed and general questions will be asked about contracting experience and to ensure the license classification covers your type of projects. You may use this time to ask the Board member advice or the staff questions concerning the licensing law. There is no dress code requirement.
Interview Waived – Files are reviewed prior to the Board meeting and those granted waiver of the interview will be sent a notification letter. However, the license does not get granted earlier and must be approved at the Board meeting.
Board Review - See the “Public Meetings Calendar” for the Board meeting schedule. The law requires the full Board to vote to approve all licenses in order to be issued. Contractors granted a hardship for early review are ratified at this meeting for issuance.
License Issuance Upon approval by the full Board, the license will be issued for two (2) years. After the Board meeting, these may be confirmed online at “Verify a License” on the website at: http://verify.tn.gov/ within 3 to 7 business days. The license will have your license name, ID number, classification, expiration date and monetary limit (contains same information required to be on the outside of a bid envelope for primes and subs)
Letter of Reference - to be completed by a past client or emp;loyer, who can comment about construction work and expericene, or a code official who has inspected yuor work (not from a relative).
Contractors with a monetary limit of $3,000,000 or less must submit a self-prepared or compiled financial statement along with the renewal application. Contractors with a limit of $3,000,001 or more must submit a CPA-reviewed financial statement.
For classifications requiring a trade exam, attach a copy of the passing exam score; the “Business and Law” exam is not required to be taken by the new QA.
If the QA is a full time employee only, with no ownership or not a majority owner (less than 20% ownership interest), the “Power of Attorney” form must also be signed by the owner, notarized and attached to the application.
If the license classification does not require a trade exam, list their experience or attach a resume of the QA.
Tennessee Fire Sprinkler Contractor License
Agency:
Tennessee Department of Commerce & Insurance - Licensing & Regulations
Tennessee Individual Construction and Contracting Licenses
Alarm Employee Registration
Agency:
Tennessee Department of Labor and Workforce
Foreign Qualification is Prerequisite:
No
Exam Required?
Not Set
Registered Agent (Special Agency) Required?
No
Qualifying Individual Requirements:
Each applicant must:
Be at least 18 years of age
Be of good moral character.
Submit a signed, notarized application along with the appropriate non-refundable application fee of $100.
Submit copy of receipt for electronically scanned fingerprints.
Submit two 1" x 1" color passport-style photos with the name of the applicant printed on the back of each.
If a criminal history exists applicants must disclose all arrests/charges and provide certified court documents showing the final disposition of all charges. Criminal history that could disqualify an applicant:
(a) Conviction by any local, state, federal or military court of any crime involving the illegal use, possession, sale, manufacture, distribution or transportation of a controlled substance, controlled substance analogue, drug or narcotic; (b) Conviction of a crime involving felonious assault; (c) Conviction of a crime involving unlawful breaking or entering, burglary, larceny or arson; (d) Conviction as an habitual criminal; or (e) An addiction to alcohol or a narcotic drug.
Conviction means and includes the entry of a plea of guilty, plea of no contest or a verdict rendered in open court by a judge or jury.
Annually by the date of last refresher course completed.
Tennessee Fire Extinguisher Specialist License
Agency:
Tennessee Department of Commerce & Insurance - Fire Prevention/State Fire Marshal's Office
Foreign Qualification is Prerequisite:
No
Exam Required?
Not Set
Registered Agent (Special Agency) Required?
No
Requirement Notes:
This application must be accompanied by: 1. Proof of completion of course of instruction/study from a manufacturer school or other program (including date and type of course.) 2. A written affidavit from the firm for which you work, supporting your competency to act as an extinguisher specialist. Pursuant to Rule 0780-2-14.05 (1) (a) 3. Application Fee
1. Proof of completion of course of instruction/study from a manufacturer school or other program (including date and type of course.)
2. A written affidavit from the firm for which you work, supporting your competency to act as an extinguisher specialist. Pursuant to Rule 0780-2-14.05 (1) (a)
3. Must present citizenship evidence listed on the application
Filing fees depend on your individual situation. We do our best to calculate your filing fees
upfront and collect those fees today so we can get started. Your specialist will determine your
exact filing fees and invoice additional fees if required.
