Any contractor worth their salt knows how vital a contractor’s license is. If you are in the construction business, whether residential or commercial, you must get a license if your state requires it. If you want to be a residential contractor in Tennessee, then you will need a license.
Who Needs a Contractor's License in Tennessee?
The Tennessee Contractors Licensing Act states that any person or business without a license to represent itself as licensed or act in a licensed contractor’s capacity is unlawful. You may think that you are not a contractor as a designer, supplier, or subcontractor and do not need a license.
Here’s an eye-opener. According to the Licensing Act, contracting includes but is not limited to:
- Offering to engage
- Assuming charge of construction, improvement, or alteration
- Negotiating the price of projects worth $25,000 and above, including materials, labor, and equipment.
In summary, HVAC, roof, plumbing, mechanical and electrical contractors need to be licensed when working with other contractors on $25,000 and above projects.
For home improvements, you need a license for all residential projects between $3,000 and $24,999. Such projects deal with dwelling units or residences with less than four units. The term “home improvement” covers a vast array of construction work — from remodeling, alterations to replacements, repairs, and more — all of which require licenses.
Why You Need a Tennessee Contractor's License Now
The ever-growing economy and population need a professional and thriving construction industry. There have been new constructions across the state because of limited inventory and increasing housing prices. A recent report says that single-family buildings will be on the rise this year before multi-family projects take over. This growth has the industry outperforming expectations.
This growth presents an opportunity for contractors that is unmatched. With the continued increase in population, the opportunity for licensed contractors has never been this great.
In addition, the average salary of a general contractor is around $113,000. As an entry-level general contractor, you can make about $79,000. With the continuous growth in the construction industry, these figures are bound to shift upwards. That makes it the best time to get your contractor’s license.
Impact of Seasonality on Projects
The weather has a significant impact on the construction industry. It determines the materials to use, the construction time frame, and the construction’s durability. As a general contractor, you need to adjust and adapt to climatic conditions.
However, with the mild climatic conditions experienced in Tennessee all year round, you can have your hands full all year. These conditions make now the ideal time to get that license, have your business up and running, and get your fair share of the industry. However, in extreme weather, you need thoughtful planning: consider the effect of environmental conditions on the construction process and plan accordingly.
Benefits of Working in the Off-Season as a Residential Contractor in Tennessee
The off-season for you as a contractor means more labor is readily available. Working on projects in this season will cost less because of the high supply of labor. Once you get your license, you can bag multiple clients that you can work for in this off-season period. The off-season is mostly during winter, making now the ideal time to get your license and get clients so that you can benefit from the perks of working in the off-season.
Taking the Exam to Become a Residential Contractor in Tennessee
After identifying the license category you want, the next logical step is to prepare to take and pass the Business and Law exam. At Contractor Training Center, we offer you an opportunity to prepare for both your Business and Law exam and the Tennessee BC-A Residential Contractor exam with our exam prep courses and reference materials. With our Tennessee BC-A Residential Contractor Exam Prep Course, you will be prepared to pass the exam on the first try with ease.
We know just how important passing this exam is for you and want to be a part of your success. So, sign up for our prep course today to begin your licensing journey.