A Tennessee contractor license from the Board for Licensing Contractors is required for prime contracting work of $25,000 or more, and for certain trades at the same or a higher threshold. Look up the license on the state's official Verify Public Search before you sign a contract or accept a bid.

The Board licenses the contractor. It does not guarantee the quality of the work, and it does not operate as a general recovery fund that pays your repair bill.

Who needs the license, and how do you verify it?

The Board for Licensing Contractors, inside the Department of Commerce and Insurance, publishes the license rules on its "Get a Contractor License" page. A license is required before bidding on work that meets the monetary threshold. For prime contractors, that threshold is $25,000. Electrical, mechanical, plumbing, HVAC, and roofing subcontractors also need a license when the work is $25,000 or more. Masonry subcontractors need a license when the work is $100,000 or more. If a project is at or above those amounts, do not accept a bid from an unlicensed company, and do not sign a contract that treats the license as something the crew will "get later."

The official public lookup is the Verify Public Search at search.cloud.commerce.tn.gov. Select the Board for Licensing Contractors and the license type, then search by the individual or business name, or by the license number if you have it. Review the license status, expiration date, and any public disciplinary actions. Search the legal name and any name on the truck or the website. A matching logo is not enough if the record is expired, inactive, or listed under a different company.

Ask the contractor, in writing, for:

• The exact license number and the name on the license.
• The classification and any monetary limit shown on the license, if the Board has assigned one.
• Proof of general liability insurance, in the form of a certificate that names you as a certificate holder if your attorney or lender wants that.
• The physical business address, and whether subcontractors on electrical, mechanical, plumbing, HVAC, roofing, or masonry work are licensed for their share of the job.
• A written contract with the scope, price, payment schedule, start and substantial-completion dates, and a description of materials.

Pay in stages tied to progress, not a large cash amount before materials arrive. Keep permits in the property owner's or the licensed contractor's name, as the local building department requires, and do not agree to pull a permit under your name for someone else's unlicensed work.

Complaints, limits of the Board, and what the Board will not do

If you believe you were the victim of an unfair or deceptive practice, unlicensed activity, or other misconduct, file a complaint with the Board. The official File a Complaint page explains that you submit the complaint online, with attachments, and that you will receive an email confirmation with a complaint number. The office reviews the complaint, then presents it to the program for a decision. The same page is clear about what the office cannot do: it cannot give legal advice or represent private individuals who seek refunds or reimbursements. Regulatory jurisdiction is limited to seeking discipline against a respondent's license.

That is a significant difference from states that run a homeowner recovery fund for unpaid judgments. Do not assume Tennessee has a comparable fund that will reimburse you after a bad job. If you need a refund, completion of the work, or damages, you may need to use the contract, small claims or other courts, and, if it fits, the Tennessee Division of Consumer Affairs mediation program, which the Board's complaint page points to. A Board complaint and a private claim can proceed on separate tracks. Filing one does not automatically create the other.

Unlicensed work at or above the threshold is a problem for the homeowner as well as the company. It can affect permits, insurance claims, and your ability to recover if the job fails. If a bid is far below every licensed company's price, verify the license before you treat the savings as real. For jobs under $25,000, a statewide contractor license may not be required, but some counties have a separate home-improvement license for residential remodeling between $3,000 and $24,999. Check that list before you hire for a mid-size remodel.

After a serious loss, talk with a licensed local insurance agent about whether a homeowners or other policy may respond, and with a Tennessee attorney about contract and consumer remedies. The Board's role remains the license.

FAQ

When is a Tennessee contractor license required?

For prime contracting of $25,000 or more, and for electrical, mechanical, plumbing, HVAC, and roofing subcontracting of $25,000 or more. Masonry subcontractors need a license at $100,000 or more. The license is required before bidding.

Where do I look up a license?

Use the official Verify Public Search at search.cloud.commerce.tn.gov, select the Board for Licensing Contractors, and check the name, license number, status, and expiration date.

Will the Board get my money back if the job goes wrong?

No. The Board's complaint page states that the office cannot represent private individuals who seek refunds or reimbursements. Its jurisdiction is license discipline. Other remedies, including Consumer Affairs mediation and a private claim, may still be available.

Is there a state homeowner recovery fund for contractor judgments?

The Board's consumer complaint materials do not describe a general recovery fund that pays homeowners. Do not assume one exists. Ask the Board or a Tennessee attorney if you have a specific judgment and want to know whether any other program applies.

Next step

Look up the company on the official Verify Public Search, get the license number and a written contract, and talk with a licensed local agent or a Tennessee attorney before you pay a substantial deposit or allow work to begin.

Sources: Tennessee Board for Licensing Contractors, Get a Contractor License; Tennessee Verify Public Search; Tennessee Board for Licensing Contractors, File a Complaint; Tennessee Board for Licensing Contractors.

A Tennessee home improvement license is required only in counties that have adopted the law, currently nine of them, for residential remodeling priced from $3,000 to $24,999. Licensed home improvement contractors must carry a $10,000 surety bond, or an accepted cash, property, or letter-of-credit alternative, and must use a written contract that meets Tenn.

Code Ann. § 62-6-508. The license is not statewide, and it is not a substitute for the regular contractor license once a job reaches $25,000.

Where the license applies, and what the contract must say

The Board for Licensing Contractors lists the counties that have adopted the home improvement law: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby. In those counties, a home improvement license is required for residential remodeling work priced from $3,000 to $24,999. If you live in another county, this particular license does not apply, though local permits and, at $25,000 or more, the statewide contractor license still might. If the job in one of the nine counties will cost $25,000 or more, you are in contractor-license territory, not home-improvement-license territory.

The Board's home-improvement page states that a $10,000 surety bond is required, and that cash, property, or a letter of credit may be used in lieu of the bond. Ask the contractor for the license number and for written proof of the bond or substitute. Then look the license up on the official Verify Public Search at search.cloud.commerce.tn.gov before you sign.

Section 62-6-508 sets out what every home improvement contract shall contain. It must be in legible writing and contain the complete agreement. It must state the full names and addresses of all parties, the license number of the home improvement contractor, the date the parties executed it, and a description of the work to be done and the goods to be used. It must be completed in full, with no blank spaces to be filled in after the owner signs, and it must clearly describe any other documents that are incorporated. Directly above the owner's signature line, it must contain this notice: "NOTICE TO OWNER: Do not sign this contract if blank. You are entitled to a copy of the contract at the time you sign."

The contract must also contain the approximate dates when the work will begin and be substantially completed, the agreed consideration, a notice that all home improvement contractors must be licensed by the Board and that inquiries about a contractor should be sent to the Board's office, and all other matters the parties lawfully agree on. It may not contain a power of attorney to confess judgment. No salesperson, agent, or employee of the contractor is authorized to make changes in the agreement on behalf of the owner. A contract that fails to meet these requirements is not invalid solely because of that noncompliance, the statute says, so a missing item is not, by itself, an automatic cancellation right. It is still a reason to pause and to insist on a complete written agreement.

The home-improvement licensing statute does not create a general three-day right to cancel every remodeling contract. Door-to-door or in-home sales may be covered by separate federal or state cooling-off rules. If the salesperson came to your house, ask the Division of Consumer Affairs or a Tennessee attorney whether a cooling-off right applies to that sale. Do not assume you have three days to cancel a contract you signed at a contractor's place of business.

How to hire, pay, and complain

Get at least two written bids from licensed companies, and compare the scope, materials, start dates, and payment schedule, not only the bottom line. A reasonable deposit for materials is different from a demand for most of the price up front. Tie later payments to finished work, and do not make the final payment until you have walked the job and the permits have been closed if a permit was required.

Home improvement work in the nine counties can include remodeling, repairs, and related residential projects in that statutory price range, such as roofing, painting, fences, and interior or exterior alterations. If a bidder is not licensed for this work in a covered county, do not hire that bidder for a job between $3,000 and $24,999.

If something goes wrong, file a complaint with the Board on its official complaint page, attach the contract, the license number, photos, and payment records, and keep the complaint number from the confirmation email. The Board can pursue license discipline. It cannot give legal advice or represent you in a claim for a refund. You may also use the Division of Consumer Affairs mediation program, and you may need a private claim on the contract or on the $10,000 bond. Talk with a Tennessee attorney about how a bond claim works and what deadlines apply. There is no general, statewide homeowner recovery fund described on the Board's consumer complaint page, so do not budget as if one will pay for completion after a default.

FAQ

Which counties require a Tennessee home improvement license?

The Board currently lists Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby, for residential remodeling priced from $3,000 to $24,999.

What bond is required?

A $10,000 surety bond, or cash, property, or a letter of credit in lieu of the bond, according to the Board's home-improvement license page.

Can I sign a contract that still has blank lines?

The statute says the contract must be completed in full without blank spaces to be filled in after the owner signs, and it must include a notice above the signature line that you should not sign if it is blank and that you are entitled to a copy when you sign.

Is there a general three-day right to cancel a home improvement contract?

Section 62-6-508 does not create a general three-day cancellation right for every contract. Ask Consumer Affairs or a Tennessee attorney about cooling-off rights if the sale was made at your home.

Next step

Confirm that the county is one of the nine, look up the license and the $10,000 bond, and have a licensed local agent or a Tennessee attorney review a complete written contract before you pay a deposit or allow work to start.

Sources: Tennessee Board for Licensing Contractors, Get a Home Improvement License; Tenn. Code Ann. § 62-6-508; Tennessee Verify Public Search; Tennessee Board for Licensing Contractors, File a Complaint.