Tennessee Contractor License Exam — All Questions
3 questions
In Tennessee, a contractor must hold a license from the Board for Licensing Contractors before bidding or contracting when the total cost of a general building project reaches at least what amount?
- a.$3,000
- b.$10,000
- c.$25,000✓
- d.$50,000
Tennessee requires a contractor's license when the total cost of the work is $25,000 or more for general building projects. The license (with the proper classification and monetary limit) must be in place before the contractor even bids, not just before it starts work.T.C.A. §62-6-103 (license required)
How does the Tennessee Board for Licensing Contractors set a contractor's monetary limit (the largest project the license allows)?
- a.It equals five times gross annual revenue
- b.It is unlimited for every licensee
- c.It always equals the contractor's bond amount
- d.It equals the lesser of ten times the contractor's net worth or ten times its working capital✓
Tennessee sets the monetary limit at the lesser of 10 times net worth or 10 times working capital, as shown on the required financial statement. The rule keeps a contractor's project size tied to its demonstrated financial capacity.T.C.A. §62-6-111; Board financial rules (monetary limit)
Which Tennessee contractor licensing rule is stated correctly?
- a.A contractor may submit a bid first and obtain the license afterward
- b.A contractor must hold the license before bidding, and general building work triggers licensing at $25,000 or more✓
- c.Electrical, plumbing, and mechanical work never require a state license in Tennessee
- d.General building work requires a license only above $100,000
In Tennessee the contractor's license must be obtained BEFORE bidding, and general building work triggers licensing at $25,000 or more (T.C.A. §62-6-103). Lower-dollar trade work is handled through separate limited-license tiers rather than being exempt.T.C.A. §62-6-103