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:
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.