License Requirements
• The first step in the licensing process is to pass the exams. You will then submit an application to the state licensing board with required documentation.
• The Business and Law exam is required for licensure in every Contractor classification
• The monetary limit (limit per contract) is based on 10 times the lesser of the net worth or working capital or experience. (Working capital is current assets minus current liabilities and net worth is total assets minus total liabilities).
• A reviewed financial statement is required for monetary requests of $3,000,000 or less.
• A CPA audited financial statement is required for monetary requests exceeding $3,000,000. To obtain an unlimited license, applicants must have over $300,000 in both net worth and working capital.
• All contractors with 1 or more employees are required to carry Worker’s Compensation insurance. Every applicant will be required to provide a certificate of insurance proving an adequate amount of general liability insurance.
The requirements are as follows:
Monetary Limit = Minimum Insurance
Up to $500,000 = $100,000
$501,000 to $1,500,000 = $500,000
$1,501,000 to Unlimited = $1,000,000
Reciprocity
Tennessee has a limited reciprocity agreement for several licenses with the following states: Alabama, Arkansas, Louisiana, Mississippi, North Carolina, and South Carolina for the trade exam. Candidates will still be required to pass the Tennessee Business and Law Management exam.
For more information on Reciprocity please click here.
NASCLA Accredited license is accepted in the following states: Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, Oregon, South Carolina, Tennessee, Utah, Virginia & the Virgin Islands.
West Virginia will accept the NASCLA exam scores for the West Virginia General Contractor, provided the NASCLA exam was passed after 11/1/2013.
Nevada will also accept the NASCLA exam scores if the exam was passed after 12/1/2013. This is for the same classification.
As of August 1, 2017, Arizona began accepting this examination in lieu trade examinations for the B-1 and B-2 General Commercial Contracting Classifications. As of November 21, 2017 Arizona also began administering the NASCLA exam.
As of 3/1/2019, Florida is accepting the NASCLA exam. Scores from the NASCLA exam are now acceptable for the Residential, Building, or General Contractor classifications. Applicants using the NASCLA exam will still be required to pass the Florida Business and Finance exams and meet all other application requirements.
Continuing Education
Tennessee currently does not have Continuing Education Requirements for Contractors.
The Exam
• This is an open-book, multiple choice, timed test with 100 questions and a 5-hour time limit.
• In order to pass you must answer 73 questions correct (73%).
• The exam fee is $53.
• To schedule your exam contact PROV at 1-866-720-7768.
Topics covered on the exam are Plan Reading and Estimating, Site-Work, General Code, Footings and Foundations, Concrete and Concrete Reinforcement, Masonry, Carpentry, Doors, Windows and Stairs, Roofing, Siding and Insulation, Interior Finish, HVAC, Plumbing & Electrical concepts, and OSHA Safety.
How We Help You Prepare
American Contractors Exam Services offers a seminar to prepare you for the Tennessee Commercial Contractors exam. We also offer a seminar to prepare you for the required Business and Law Management exam. Our courses will help you highlight and tab your book for easy reference during the exam. You can sign up online or by calling our office at 1-800-992-1910.
