Tennessee Contractor License Courses, Classes & Exam Prep

By checking out this page, you are one step closer to obtaining your Tennessee contractor’s license. You have begun a journey that will lead to larger projects, higher credibility, and a successful contracting future!

At Contractor Training Center, we do everything in our power to ensure this outcome. With seminars and educational resources, we will guide you on your journey to a Tennessee contractor license.

This page will cover the specific steps of how to get a contractor’s license in Tennessee. It explores state-specific exam requirements, the application process, and all other contractors license Tennessee requisites!

Contracting terminology

When applying for your Tennessee contractor license, you may find yourself overwhelmed by jargon. This is understandable, especially due to how broadly the state of Tennessee defines ‘contracting.’

According to the state, a contractor is “someone who performs or offers a price, or bid to construct, supervise, superintend, oversee, schedule, direct, or in any manner assume charge of the construction, alteration, repair, improvement, movement, demolition, putting up, tearing down, or furnishing labor to install material or equipment; highway, road, railroad, sewer, grading, excavation, pipeline, public utility structure, project development, etc.”

In simpler terms, if you perform any of the aforementioned services, you are a contractor. Thusly, you need to undergo the contractor license Tennessee application process.

If your goal is to work on large scale projects, you need a Tennessee general contractor license. This is because the general contractor license Tennessee provides is needed for all projects beyond a certain bidding price. To be precise, you must hold a Tennessee contractor’s license for bidding projects at $25,000 or more!

The Benefits of Obtaining a Contractor License in Tennessee

Gives You Credibility

Having a license increases your credibility, allowing you to build trust with your clients. There are other ways you can gain their trust, but this is a big part of establishing yourself and your business, especially if you're working with new customers.

Gives You A Higher Earning Potential

Consequently, there are larger projects that you can't perform without a contractor's license. With one, you can take on big assignments, get more jobs, and increase your profit. More times than not, clients will pay a higher price to a licensed contractor as opposed to unlicensed handymen.

Taking the Exam

Once you are ready for your specific test, it’s time to schedule your exam. The general contractor license Tennessee exams are crucial for your career, so prepare accordingly!

As with other states, the contractor’s license Tennessee test will take place at a PSI facility. You can find their offices in:

• Chattanooga
• Jackson
• Johnson City
• Knoxville
• Memphis
• Nashville

Note: you need to schedule an appointment; walk-ins will not be honored. Making an appointment is easy, and some applicants have been able to schedule for the same day!

You can schedule an appointment through PSI, either through PSI's website or by contacting them at (800) 733 9267.

After scheduling the exam, you will need a passing grade to receive the Tennessee general contractor license. With the Contract Training Center, there’s a high chance you only will have to take this test once!

Trade exam waiver

If you already hold a license in another state, the state of Tennessee will waive the trade exam for the general contractor license. This is because they have a reciprocity agreement with certain areas. They will honor specific licenses from other states. That way, you do not have to retake your trade exam to get the Tennessee contractor’s license. These states include:

• Alabama
• Arkansas
• Georgia
• Louisiana
• Mississippi
• North Carolina
• Ohio
• South Carolina

You must consider any of the above states as your domicile to qualify for the waiver. The waiver will not apply if you do not officially live in one of these states.

If you do live in one of these states and are licensed, then you qualify for the trade exam waiver! Simply attach a copy of your license and your previous score to the contractor’s license Tennessee application.

Supplemental application material

Once you’ve passed your exams, it’s time to move further into the application process. This step includes filling out the Tennessee contractor’s license application and submitting additional paperwork. The supplemental materials will vary based on your own qualifications.

The Tennessee general contractor license requires the following documents:

• A prepared financial statement
• Certificate of insurance
• Letter of reference
• A felony conviction disclosure (if applicable)

Preparing your finances

One of the main components of how to get a contractor’s license in Tennessee is to include a prepared financial statement. This is because the Tennessee general contractor license allows you to perform services for a monetary rate.

For this step, you will need the help of a certified public accountant (CPA).  If you have a monetary limit of more than $3,000,001, your CPA will need to audit your financial statement. If your limit is less than this number, the Tennessee contractor license will require a reviewed financial statement.

Do not be tempted to avoid hiring a CPA! This step is mandated in the contractor’s license Tennessee process.  You must use a CPA if you intend to work on commercial homes that will bid more than $150,000.

Determining monetary limit

As a contracted individual, you will be exchanging money for services. Thus, to regulate the economy, you will be assigned a monetary limit. This number is the threshold for how much you may bid and contract on projects. It is calculated by on your own net worth and working capital.

The general contractor license Tennessee requires a monetary limit ten times the amount of your net worth or working capital. Use whichever value is less. This equation looks like:

• 10 x (working capital); if working capital < net worth
• 10 x (net worth); if net worth < working capital

So, let’s say your net worth is $150,000 and your working capital is $20,000. Working capital is the lesser number, so the monetary limit would be:

• 10(20,000) = $200,000

This limit would allow you to bid and contract on projects that are equal to or less than that value! Memorize this rule; it will help you in the future. By understanding the limit process, you have a better grasp on how to get a contractor’s license in Tennessee!

Submitting the application

After compiling all relevant paperwork, it’s time to put the finishing touches on your Tennessee contractor’s license application. Make certain that you have accurately answered all questions. The state will not honor the application if it’s unfinished!

Also, make sure everything is notarized and all supplemental material is attached. This includes:

• The one-time Tennessee contractor license fee of $250. This should be a check or money order written out to ‘The State of Tennessee’
• A copy of your passing exam scores
• The financial statement prepared by your CPA
• A Certificate of Insurance

You need to send your application into the contractor’s license Tennessee board prior to the 20th of the month that they are meeting. These meetings fall on the months of January, March, May, July, September, and November. If the 20th falls on a weekend or holiday, the deadline for the Tennessee contractor’s license extends to the next business day.

You can find their schedule here on the public meetings calendar. You can send the Tennessee general contractor license application to this address:

Tennessee Board for Licensing Contractors
500 James Robertson Pkwy.
Nashville, TN 37243-1150

Telephone: (615) 741-8307 or
Email: Contractor.App@tn.gov

If you’d rather not apply by snail mail, the contractor license Tennessee application will allow you to apply online! All you need to do is create a profile through their website and fill out all questions. Attach copies of your paperwork and pay the general contractor license Tennessee fee online. You can pay by credit, debit, or e-check. This option is perfect if you would rather not wait the 5-7 days for your application to travel by mail.

Getting board confirmation

One final step of how to get a contractor’s license in Tennessee is an in-person interview. This is not mandatory for everyone. Sometimes it can be easily waived, if applicable. You will not be able to waive the contractor’s license Tennessee based interview if:

• You have a restricted residential BC-A/r.
• You did not provide evidence of at least three years of experience
• You have a complaint or felony conviction

For those that cannot get their interview waived, you will be sent a letter with your date and details. This interview is the last step for achieving a Tennessee general contractor license, so prepare accordingly!

Once you’ve finished this step, the board will decide whether or not to grant you the Tennessee contractor license.