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.