In the State of Tennessee, licensing requirements for contractors are contingent on the type of work you specialize in and the value of the project you plan to contribute provisions of labor and materials to. In this brief article, a Nashville license defense attorney from Cotney Construction Law will discuss the various licensing requirements that contractors do (and do not) have to satisfy in order to work legally in the Volunteer State. Working without a valid license could negatively affect your ability to work in the future, and the corresponding fines can be costly regardless of how small or large your business is, so consult a Nashville license defense attorney to defend your ability to work.
No License: Projects Under $25,000
Tennessee requires all contractors and subcontractors to obtain the proper licensing in order to bid on or negotiate for contracts valued at $25,000 and above. That means projects under $25,000 do not require a contractors license. Therefore, certain projects can be taken on without a contractors license, but these projects aren’t very profitable and won’t be very helpful for growing your business.
License: Projects Over $25,000
As we mentioned above, a contractors license is required before you can be contracted for projects valued at $25,000 or more. This rule covers full projects and portions of projects. This includes both contractors and subcontractors, as well as construction management professionals. Some types of subcontractors that will require licensing for projects that match this description include those specializing in electrical, mechanical, plumbing, HVAC, and roofing. Masonry subcontractors must only be licensed if their portion of a contract is valued at $100,000 or more.
Protect Your License, Protect Your Livelihood
Working without the proper licensing could put your career in danger. If you are unable to produce a license when working on a project exceeding $25,000 in value, you could be penalized with a Class A misdemeanor, barred from obtaining proper licensure for a period of time, or issued a fine ranging from $50 to $1,000. If you are properly licensed, a claim against your license can still appear suddenly and without warning, so it’s imperative that you are cognizant of your conduct on the project site, avoid negligence, and partner with a Nashville license defense lawyer.
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.