Tennessee Contractor Licensing & Monetary Limits
Tennessee requires a license before bidding once a project reaches the statutory threshold, and it ties the project size to the contractor's finances. This chapter covers the Board, the dollar thresholds, and the monetary-limit formula.
The Board and the licensing thresholds
The Tennessee Board for Licensing Contractors (TBLC), within the Department of Commerce and Insurance, licenses contractors under T.C.A. Title 62, Chapter 6. A license is required before bidding when the total cost of general building work is $25,000 or more. Masonry requires a license at $3,000 or more, and electrical, plumbing, and mechanical (HVAC) work require a license at any dollar amount.
The monetary limit
The Board sets each contractor's monetary limit - the largest project the license allows - at the lesser of ten times net worth or ten times working capital, as shown on the required financial statement. The rule keeps a contractor's project size tied to its demonstrated financial capacity.
Classifications and the trade exam
Tennessee classifies building contractors as BC (combined), BC-A (residential), BC-B (commercial), BC-C (industrial), plus small-commercial and trade classifications. Licensure requires the Business and Law exam plus a trade exam; the NASCLA Accredited Commercial General Building exam is accepted for the trade portion. The exam provider transitions from PSI to Prov effective July 1, 2026.
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