Planning to build or remodel homes in Tennessee? A state contractor license is required for projects of $25,000 or more. Vol State’s Limited Residential Contractor course, offered online with RocketCert, lets you earn the BC-A/r license for single-family projects up to $125,000 without taking the state exams. You’ll still complete the Board’s other application requirements, including financial statements, references, and proof of insurance.
Which Tennessee License Do I Need?
- Home improvement license: residential remodeling roughly $3,000–$25,000, required in some counties.
- Contractor license: any project of $25,000 or more. Requires the state exams plus a financial statement.
- Limited Residential (BC-A/r): single-family homes up to $125,000. Vol State’s course replaces the exams. All other application requirements still apply.
In Tennessee, a contractor's license is required for construction projects of $25,000 or more. Additionally, a Tennessee contractor license is necessary for all plumbing and electrical work. Most license classifications require applicants to pass two exams: the business and law exam, and the construction/trade exam. However, certain licenses, such as those for roofing, fuel gas, framing, and drywall, can be obtained by passing only the business and law exam. Conversely, the limited license electrician and limited license plumber classifications require only the successful completion of a trade exam. The Tennessee Board for Licensing Contractors is responsible for establishing the requirements and administering the licensing process.
Course at a Glance
Cost: $479
Format: Online and self-paced, available 24/7, including on mobile devices
Length: About 13 hours, with lifetime access
Covers: Bidding and estimating, contracts, insurance, project management, blueprints, the 2021 International Residential Code, OSHA safety, and Tennessee contractor laws
After the course: Submit your application to the Tennessee Board for Licensing Contractors with proof of $100,000 general liability insurance, a financial statement or qualifying surety bond, and a letter of reference.
The Limited Residential (BC-A/r) license covers single-family residential projects up to $125,000. It is not accepted in every county; in some cases a full Residential Contractor License is required. Completing an approved community college course replaces the state exams, but you’ll still need to meet the Board’s other application requirements, including financial statements, references, and proof of insurance.
This license allows licensees to bid on and contract work for construction, remodeling, repair, or improvement projects of a single-family dwelling.
Information on Bonds and Financial Statement
Bonds – Bonding or proof of financial responsibility in the amount of $10,000 in ONE of the following forms (the license is issued in the exact name of the entity/ individual and mode of operation as on the bond):
- Surety Bond (with written Power of Attorney attached from Insurance Company); or
- Cash Bond; or
- Property Bond; or
- Irrevocable Letter of Credit (ILOC)
More details may be found at the TN Department of Commerce and Insurance's Application Requirements & Process web page.
Financial Statement – A reviewed financial statement is required for a monetary limit of up to $3,000,000, while an audited financial statement is necessary for limits over $3,000,000. All financial statements must be prepared by a licensed CPA, and the contractor’s license will be issued in the exact name listed on the statement.
