Tennessee General Contractor License Requirements (2026)

The Tennessee Board for Licensing Contractors (TBLC), housed in the Tennessee Department of Commerce and Insurance, licenses general contractors statewide under the Contractors Licensing Act of 1994 (T.C.A. Title 62 Chapter 6). Any project valued at $25,000 or more requires a TBLC license issued to the qualifying individual and the business entity. Tennessee uses classifications rather than monetary classes — BC (Building), BC-A (Industrial), BC-B (Highway, Railroad, Airport), BC-C (Municipal and Utility), and RB (Residential) — and each license carries a monetary limit set from a CPA-reviewed or compiled financial statement. Every applicant must pass a PSI trade exam and the Business and Law exam at 73%.

Regulatory Oversight

This license is issued and enforced by Tennessee Board for Licensing Contractors — Department of Commerce and Insurance (TBLC) pursuant to Tennessee Code Annotated Title 62 Chapter 6 (Contractors Licensing Act of 1994); Rules of the Board Chapter 0680. TBLC licenses general and specialty contractors statewide, sets monetary limits based on CPA-reviewed financial statements, administers the PSI examination program, and conducts disciplinary proceedings under T.C.A. Title 62 Chapter 6.

Official portal: https://www.tn.gov/commerce/regboards/contractor.html
Address: 500 James Robertson Parkway, Davy Crockett Tower, Nashville, TN 37243
Phone: (615) 741-8307

Who May Apply

An applicant qualifies only after meeting the age floor of 18 and producing a valid Social Security Number. No Tennessee residency requirement. Out-of-state applicants apply through the same TBLC process.

Good moral character

TBLC reviews fitness for licensure on every application. Material misrepresentation or prior license revocation in any state are grounds for denial.

Background investigation

Mandatory criminal history disclosure on the application; TBLC may request court documentation for any disclosed offense.

Disqualifying conditions

Construction-related fraud convictions
Felonies involving dishonesty within the past ten years
Prior contractor license revocations in any U.S. jurisdiction

Required Experience and Education

Plan to substantiate 3 years of three or more years of construction experience for the qualifying individual in the classification applied for, demonstrated through completed projects of comparable scope and value to the requested monetary limit with hard records. Payroll, tax, project logs, and supervisor verification are what the board relies on when it reviews the claim.

Accepted proof of experience or eligibility

TBLC Reference Letter forms from prior owners, architects, engineers, or general contractors
Project list with addresses, dollar values, and dates for the past five years
W-2 statements, 1099 records, or business tax returns covering the qualifying period
Certificates of substantial completion or final inspection cards

Education substitution

A construction-related associate or bachelor degree may substitute for a portion of the three-year experience requirement at the discretion of the Board.

Examination Requirements

Examinations are administered by PSI Services LLC under contract to TBLC. The applicant must pass the following examination parts before the license can issue:

PSI Tennessee Business and Law Examination — open book — 50 questions, 140 minutes, passing score 73%
PSI Tennessee BC Trade Examination (or BC-A, BC-B, BC-C, RB as applicable) — open book — 100 questions, 240 minutes, passing score 73%

Examination fee: $57 per PSI exam part paid on the day of testing.

Retake policy: Failed parts may be re-taken individually after a 24-hour wait by paying a new $57 fee. Each application remains valid for one year from filing.

Insurance and Financial Requirements

The cited state source set does not require a contractor license surety bond for this credential. Contractors should still confirm project-specific bond, permit-bond, or public-works bond requirements before bidding.

General liability

Minimum general liability of $100,000 bodily injury / $300,000 aggregate / $50,000 property damage for residential RB classifications, and $500,000 combined single limit for commercial BC classifications. Higher limits are commonly required by owners.

Workers' compensation

Workers compensation insurance is mandatory for any construction business with five or more employees under T.C.A. §50-6-902. Sole proprietors and partners may exempt themselves.

Additional financial requirements

A CPA-prepared financial statement is required at application. Compilation is acceptable for monetary limits up to $1,500,000; a CPA review is required for limits up to $3,000,000; an audited statement is required for unlimited classifications. Net worth and working capital determine the monetary limit assigned by TBLC.

Licensing Fees

Fee	Amount
Application (non-refundable)	$250
Examination	$114
Initial license	$250
Renewal (every 2 years)	$250

Keeping the License Current

Renewal of the Tennessee BC General Contractor (Building, Industrial, Highway, Municipal/Utility) or RB Residential comes due every 2 years. As cited, the renewal fee stands at $250. Tennessee contractor licenses renew every two years on the anniversary date assigned at issuance.

Continuing education: Tennessee does not require continuing education hours for general contractor renewal, but an updated CPA financial statement is mandatory each cycle.

Downloadable Asset

2026 Tennessee General Contractor License Roadmap (PDF) — a printable step-by-step checklist for the application process.

Download the PDF roadmap →

Reciprocity and License Transfer

Tennessee accepts the NASCLA Accredited Examination for this classification.

Reciprocal State	Accepted Exam	Conditions
North Carolina	Trade exam waived	Bilateral TBLC–NCLBGC reciprocity for active general contractors in good standing.
Georgia	Trade exam waived	Bilateral TBLC–Georgia State Licensing Board for Residential and General Contractors reciprocity.
Alabama	Trade exam waived	Bilateral TBLC–Alabama Licensing Board for General Contractors reciprocity.
Mississippi	Trade exam waived	Bilateral TBLC–Mississippi State Board of Contractors reciprocity.
Florida	Trade exam waived	Bilateral TBLC–Florida CILB reciprocity for certified general contractors.
Louisiana	Trade exam waived	Bilateral TBLC–Louisiana State Licensing Board for Contractors reciprocity.
South Carolina	Trade exam waived	Bilateral TBLC–South Carolina Contractors Licensing Board reciprocity.
Kentucky	Trade exam waived	Bilateral reciprocity where Kentucky issues equivalent classification.
Ohio	Trade exam waived	Bilateral reciprocity for commercial classifications only.

Tennessee maintains one of the broadest bilateral reciprocity programs in the Southeast. TBLC also accepts the NASCLA Accredited Examination in lieu of the Tennessee BC trade exam for commercial general contractor applicants. The Business and Law exam is required in all cases.

Weighing more than one jurisdiction? The national hub compares General Contractor license requirements in every state — exam, bond, fee, and experience thresholds side by side.

Application Process, Step by Step

Choose the classification and monetary limit. Select BC, BC-A, BC-B, BC-C, or RB and the monetary limit you want assigned. The limit drives the financial statement type required.
Designate a qualifying individual. The qualifying individual must be a full-time owner, officer, or employee of the business with three or more years of relevant experience.
Prepare the CPA financial statement. Compilation for limits up to $1.5M, review for limits up to $3M, audit for unlimited. Statement must be less than twelve months old at filing.
Submit the TBLC application packet. File with the application fee, financial statement, reference letters, project list, certificate of insurance, and entity formation documents.
Pass the PSI Business and Law exam at 73%. Open-book 50-question Tennessee Business and Law exam scheduled directly with PSI after TBLC approves the application.
Pass the PSI BC trade exam at 73%. Open-book 100-question Tennessee BC trade exam (or BC-A, BC-B, BC-C, RB equivalent) scheduled with PSI.
Receive the TBLC license. TBLC issues the license at the next regularly scheduled Board meeting after the exams are passed and the file is complete.

Frequent Application Errors

Working from the cited board instructions, here are the snags most likely to trip up a Tennessee General Contractor filing.

Filing the wrong financial statement type

A compilation cannot support a monetary limit above $1.5M. Applicants who request unlimited classification with a compilation are downgraded automatically by TBLC, wasting CPA fees.

Missing the Board meeting cutoff

TBLC issues licenses at monthly Board meetings. Files completed after the cutoff date wait an extra month for approval. Plan accordingly when bidding.

Assuming the $25,000 threshold applies to every trade

Electrical, mechanical, plumbing, HVAC, and roofing require a license at any dollar amount. Masonry requires a license at $3,000. Only general building work uses the $25,000 floor.

Borrowing a qualifying individual

The qualifier must be a full-time owner, officer, or W-2 employee of the licensed entity. TBLC audits employment status and revokes licenses for borrowed qualifiers.

Letting workers compensation lapse

Tennessee construction businesses with five or more employees must carry workers compensation. TBLC cross-checks coverage with the Bureau of Workers Compensation and suspends non-compliant licenses.

Recommended References

The references below are either cited by the board, used during the application, or standard preparation for the trade. They are listed purely for convenience — CLR earns no commission on any of them.

Tennessee Contractors Reference Manual (current edition) — Upstryve / Builders Book Depot. Compiled reference covering T.C.A. Title 62 Chapter 6 and TBLC rules. Open-book at the PSI test center.
NASCLA Contractors Guide to Business, Law and Project Management — Tennessee edition — NASCLA. Required reference for the Business and Law portion of the exam.
International Building Code and International Residential Code (Tennessee-adopted editions) — International Code Council. Primary technical references for the BC and RB trade exams.

Document Checklist

These are the pieces to lock down before filing with TBLC:

☐ TBLC application with $250 fee and qualifying individual designation
☐ CPA-prepared financial statement (compilation, review, or audit) less than twelve months old
☐ Three reference letters from prior owners, architects, engineers, or general contractors
☐ Project list covering the past five years with addresses, values, and dates
☐ PSI Business and Law exam pass certificate at 73%+
☐ PSI BC trade exam (or NASCLA equivalent) pass certificate at 73%+
☐ Certificate of insurance showing GL and workers compensation coverage

Other Tennessee Trade Licenses

If the General Contractor license is not the right fit, the following published Tennessee trade guides are also covered by CLR:

Questions Applicants Ask

When do I need a Tennessee contractor license?

Any project valued at $25,000 or more requires a TBLC license under T.C.A. §62-6-103. The threshold drops to $3,000 for masonry work and to any dollar amount for electrical, mechanical, plumbing, HVAC, and roofing — those trades always require a license regardless of project value.

What classifications does Tennessee issue for general contractors?

BC (Building), BC-A (Industrial), BC-B (Highway, Railroad, Airport), BC-C (Municipal and Utility), and RB (Residential). Each is tied to a monetary limit set by the financial statement submitted at application.

How does the Tennessee monetary limit work?

TBLC assigns a maximum project size based on the working capital and net worth shown on a CPA-prepared financial statement. Compilation supports limits up to $1.5M, review supports up to $3M, and audited statements are required for unlimited classifications.

Does Tennessee accept the NASCLA exam?

Yes for commercial general contractor applicants. NASCLA may substitute for the Tennessee BC trade exam, but the Business and Law exam is still required in every case.

How often does the Tennessee contractor license renew?

Every two years. Renewal requires payment of the $250 fee and submission of an updated financial statement of the same type as the original.

Primary Sources

Regulatory requirements on this page are drawn from the official board, statute, and exam-provider materials listed below.

Verified 2026-04-26 · Next scheduled review 2026-07-25