Tennessee Contracts & Documents
Clear documents keep scope and payment disputes from spiraling. This chapter covers change orders and the AIA general conditions.
Change orders
Extra work outside the original contract scope should be authorized by a written change order signed by both parties that sets out the added work, its price, and any schedule impact. Relying on a verbal 'go ahead' is a leading cause of unpaid extras and disputes.
The AIA general conditions
In a standard AIA contract set, the A201 General Conditions of the Contract for Construction (current edition A201-2017) is the rulebook that defines notice, claims, changes, payment, and dispute resolution, and it is referenced by the owner-contractor agreement. A701 governs bidding, and G703 is payment-application backup.
State-specific details
State exam facts
- State regulator
- Tennessee Board for Licensing Contractors (TBLC), Department of Commerce and Insurance
- Passing score
- 73%
- Scored questions
- 50
- Time limit
- 140 minutes
Does Tennessee require a state contractor license?
Yes. The Tennessee Board for Licensing Contractors (TBLC) licenses contractors under T.C.A. Title 62, Chapter 6. A license is required before bidding at $25,000 or more for general building work, $3,000 for masonry, and any dollar amount for electrical/plumbing/mechanical.
What is on the Tennessee Business and Law exam?
The Business and Law exam is 50 questions, 140 minutes, and requires 73% to pass. The monetary limit is the lesser of ten times net worth or ten times working capital; a reviewed or audited CPA financial statement is required for a limit above $1,500,000.
What are Tennessee's bid-law and lien rules?
Bidders must disclose license information under §62-6-119. Tennessee lien law (T.C.A. §66-11) gives the prime contractor a one-year enforcement period, and there is a 5% retainage-escrow rule (§66-34-104). Tennessee has no state income tax on wages.
Sources: https://www.tn.gov/commerce/regboards/contractor.html