NOTICE! A Tennessee contractor's license is required BEFORE bidding or offering a price, for projects $25,000 and up (includes materials and labor), as a prime (general) contractor; and also subcontractors performing electrical, mechanical, plumbing, HVAC, roofing and masonry are also required to be licensed as a contractor, when the total portion on the project is $25,000 or more; masonry, when $100,000 or more. In addition, a sub to a sub would need to be licensed whenever there are more than one (1) subcontractors on the project. Reciprocal agreements do NOT allow using another state's license in Tennessee, but provides a trade exam waiver, only. License issuance takes 4 to 6 weeks.
A Contractor's license is required prior to contracting (bidding, offering to engage, or negotiating a price) for projects $25,000 or more, when acting as one of the following:
Prime (General) Contractor - Bidding or contracting directly with the “owner” of the project;
Subcontractor – Contracting directly with any contractor (not to the owner) to perform projects when the total cost of that portion on the project is *$25,000 or more, for the following (includes all materials, equipment, and labor):
Electrical, Mechanical, Plumbing, HVAC, and **Roofing; and
Masonry when *$100,000 and up
Construction Management – When the value of the total project is $25,000 or more.
*Masonry subcontractors must be licensed as a contractor when the project is $100,000 or more.
**Roofing subcontractors must be licensed as a contractor, effective January 1, 2014, in addition to performing work currently as a prime, for projects $25,000 or more.
The definition of contractor is found in the statute at T.C.A. § 62-6-102 and covers a very broad area, which includes construction, installation, movement, repair, etc. Other "subcontractors"; such as flooring, landscaping, fencing and concrete, are not required to be licensed unless they bid directly to the owner. Those bidding directly to the owner are considered “prime” contractors and are required to obtain a license for projects of $25,000 and more.
If a licensed prime contractor subcontracts to a licensed electrical contractor, can the electrical subcontractor subcontract to another electrical contractor who is not licensed?
No. All of the electrical subcontractors are required to be licensed, as well as, any subcontractors performing mechanical, plumbing, HVAC, roofing or masonry projects. In other words, a sub to a sub to a sub, all have to be licensed.