Understanding state licensing requirements is critical for construction professionals to maintain their livelihood. In Tennessee, a contractor’s license is a requirement in order to bid or negotiate the price on a project at and above $25,000. Unlicensed activity and improper licensure could lead to an investigation by the Department of Commerce and Insurance, the agency responsible for professional and business licensing and regulation.
Understanding Tennessee Licensing Requirements is Key
Every contractor license is assigned a classification and monetary limit which must be strictly adhered to. Before bidding on or offering a price for any project equal to or exceeding $25,000, general contractors, subcontractors, and construction management must comply with Tennessee licensing requirements.
General contractors that are bidding on a project or are in direct contract with an owner must have a license for projects costing $25,000 or more. Subcontractors that perform plumbing, HVAC, electrical or mechanical work that equal or exceeds $25,000 must also be licensed. Additionally, this requirement applies to masonry subcontractors performing work that is $100,000 or more.
Subcontractors whose trade is painting, excavation, or flooring are not required to hold a license. The subcontractor will, however, be required to have a license if they are in a contractual agreement with an owner for a project that costs $25,000 or more.
The penalties for engaging in project work without required licensing and monetary limits would make a project award invalid. This would also disqualify the contractor from re-bidding on the project and subject the contractor to disqualification to receive a license for six months. Additionally, the contractor may incur civil penalties.
Hire an Expert Nashville License Defense Lawyer
If the Department of Commerce and Insurance has just cause to investigate a contractor’s license, they will proceed aggressively. For this reason, construction professionals are advised to ensure they are properly licensed. Should a licensing discrepancy arise, you need to be prepared to protect your own best interest with the help of a Nashville license defense attorney.
Our licensing experts have helped many clients resolve their licensing issues. To ensure your lien rights are preserved, a license, proper monetary limits, and the advice of an attorney are crucial.
If you are in need of a professional construction law firm, please submit our contact request form for more information.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.