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Tennessee Department of Commerce and Insurance: Board for Licensing Contractors
Licenses are issued with a monetary limit, the maximum approved amount for a single construction project or contract.
A contractor's working capital and net worth must each amount to at least 10% of the proposed monetary limit. For example, an applicant with a net worth of $150,000 and a working capital of $10,000 would be eligible for a monetary limit of $100,000, assuming they also meet experience requirements.
Contractors must provide a certificate of insurance as proof of having general liability and workers' compensation insurance.
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.
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.
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 as 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.
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.
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.
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.
When processing government applications or disbursing filing fees, we may add an order processing fee to cover our administrative expenses.