Board for Licensing Contractors
Consumer Resources
CHECK OUT BEFORE HIRING!
Before hiring anyone to perform construction or remodeling, be sure to check them out before hiring. This includes checking to see if they are licensed and insured; know anyone else who has used their services; making sure they obtain a permit for inspections; and if they have a complaint history. These are just a few tips so please review all the resources listed below to help in making your decision. For those who have experienced damage due to a disaster, there are tips and resources listed below to obtain assistance. You are welcome to contact our Complaint Section Coordinator at 1-800-544-7693; or the direct line is (615) 532-3996; or by email at: Complaint Section
For those who have experienced problems or want to report unlicensed activity, you may skip this section and go directly to the "Complaint Filing Process". This section provides resources to report a complaint and describes the process. Unfortunately, the complaint process does not take the place of civil action and you may need to hire an attorney on cases where monetary judgements or consumer protection law damages are an issue. The Board's jurisdiction is limited to licensing law violations, however, we encourage consumers who have been wronged or received a judgment, to report this to us, as well as the Better Business Bureau to better protect the public from unscrupulous activity and consumer protection violations.
Complaint and disciplinary action history
Before hiring anyone, it is important to check their complaint history. The Board only has jurisdicition to discipline for proven license law violations under T.C.A. 62-6-118. Therefore, you may contact the Board office to check the history of a contractor. "OPEN" compliant cases (those still under investigation) are not listed on the website. Only the "CLOSED" cases with disciplinary action are listed on the public website and you would need to contact our office for those without disciplinary action, such as those where consumers have reported problems which were not within the Board's jurisdiction or not enough evidence to proceed for a formal hearing. However, disciplinary action is listed both by the month the action was reported, and includes all Divisions of the Regulatory Boards; and also in the "Archives". In addition, the Board will post an updated list of formal action within 30 days after the hearing and it includes revoked, suspended and unlicensed civil penalties against contractors who were found guilty. The Division of Consumer Affairs also has a buyer beware list of "Problem Contractors". The following are links to check disciplinary action:
CHECK DISCIPLINARY ACTION HISTORY:
Revoked/Suspended Licenses (pdf)
List of "formal" action taken by the Board; rulings on open complaint cases cannot be listed until after the Board conducts a formal hearing pursuant the Uniform Administrative Procedures. This list is updated within 30 days after the formal hearing.
Problem Contractor's List (CHAMP Listing)
List of contractors who have failed to respond in good faith to consumer complaints, where there may not be a license law violation goverened by the Contractors Board.
Disciplinary Actions ( Past/Archived)
Note: Consumers may also check with our office to check a contractor for complaints with the "Complaint Section"; we will not have specific details of "open" cases while the investigation is in process, however, you may check their history.
Disciplinary Actions (Monthly)
Disciplinary action taken at the regularly scheduled board meetings is listed within 30 days after the case is closed. Note: Disciplinary action is not published until the case has been closed. Also refer to "Archives" for all past actions.
Open Complaints or No Discipline
Not all cases result in disciplinary action. Depending on the complaint, many may receive a letter of warning or dismissed due to lack of jurisdiction. Cases that are still open have limited public information available. You may contact our Complaint Section Coordinator at 1-800-544-7693; or the direct line is (615) 532-3996; or by email at: Complaint Section to check the complaint history.
The Better Business Bureau (BBB) serves as a resource to check and also report a complaint. We encourage consumers to report to them, as well as to our Board. The BBB issues many public notifications to warn others of scams.
Guidance
A Consumer Brochure - Guide to Selecting a Contractor [pdf]
Better Business Bureau (BBB)
Construction Standards - Residential (NAHB - Adopted by the Contractors Board)
Construction Standards - Residential (NASCLA)
Consumer Affairs Division (TDCI)
Contract Tips Brochure (NASCLA - National Association of State Contractors Licensing Agencies) [pdf]
Codes Adoption (TDCI - Division of Fire Prevention)
Family Resources (Help for Families - Jobs, Health, Insurance, Mortgages, etc.)
FAQ's [pdf]
Federal Government Assistance (FEMA) for Storm Victims
Homebuyer Education (THDA) - Mortgages, Forclosures, & Tax - Information on Programs
HomeWORKS (Education Tools for Home Ownership - Habitat for Humanity)
Insurance and Bonds (Requirements for Licensing) [pdf]
Insurance Consumer Resource (TDCI)
License Search Tips [pdf]
Law References for Consumers [pdf]
Lead Based Paint Removal (TDEC)
NASCLA Hiring Tips [pdf] (National Association of State Contractors Licensing Agencies)
One-Year Implied Warranty (T.C.A. § 47-2-314 / Other: T.C.A.§ 28-3-202)
Press Release - Tips for Storm Victims/ Insurance (2/08/08) [pdf]
Press Release - Home Repair Scams (2/11/08) [pdf]
Press Release - (Foreclosure Scams) [pdf]
Residential Construction Performance Guidelines (NAHB - Adopted by the Contractors Board)
Residential Construction Standards (NASCLA)
Staff Directory of Contractors Board
THDA (Tennessee Housing Development Agency)
Tennessee Emergency Management (TEMA)
Workers Compensation Insurance Verification (Labor & Workforce Development)
2009 Consumer Calendar [pdf] (TDCI)
DISASTER ASSISTANCE AND INFORMATION
Better Business Bureau (BBB) (Check out unknown repair crews!)
Federal Government Assistance (FEMA)
NEW! FindHelpTN (Resource for Tennesseans)
Insurance - Consumer Resource (TDCI)
Tennessee Emergency Management (TEMA)
Tips for Hiring Contractors - Tornado/Flood Victims [pdf]
NEW! THDA Housing Stimulus (Second Mortgage Program)
Press Release - Tips for Storm Victims/ Insurance (2/08/08) [pdf]
Press Release - Attorney General for Tornado Victims (4/13/09) [pdf]
CONSUMER RESOURCES
The Board for Licensing Contractors regulates licensing at various levels and before hiring anyone to perform work, check to see if they need or have the proper license. Be sure to review the consumer tips below before hiring to have work performed.
Note: No one may use the license of another contractor (including relatives) and all contracts must be in the exact name as licensed.
When is a License Required?
The Board oversees five (5) of the license programs of the Regulatory Boards Division which is part of the Department of Commerce and Insurance. License requirements depends on the dollar amount of the project, as well as the county it is located. The following is a summary of when a license is required:
1. Contractor - License Requirements for $25,000 or More
A contractor's license differs from other licenses; it has a classification and monetary limit assigned. This law also defines "prime" (general) and "subcontractors". A license as a contractor is needed prior to them bidding, contracting, or making an offer, when:
• Project is $25,000 or more (contracting directly with the owner is considered a prime contractor); or acting as a construction manager by overseeing the project.
• Subcontractors who perform $25,000 or more in electrical, mechanical, plumbing and HVAC projects (subcontractors are those who contract directly with the prime licensed contractor, and not the owner).
For example, before hiring a Contractor to build your house, make sure:
1. Contractor has a current unexpired license (may check at "License Search"). (Note: Always check the license pocket card to see what "type" of license and the "name" listed, to ensure a contractor does not attempt to use someone else's license. Most licenses look the same for a security guard, auctioneer, barber, fire sprinkler, etc., however, it will identify whether it is a "Contractor".
2. Contractor has the acceptable license limit and classification:
- Classification needed: BC-A or BC allows Residential building;
- Monetary Limit: The amount approved for their license is based upon their financial statement and experience. The monetary limit must cover the total contract or bid.
3. A licensed contractor must provide proof of General Liiabilty insurance, as a condition of license. However, Workers' Compensation (WC) insurance is only required if they state they have one or more employees or fall within other exemptions of the Labor and Workforce law. Therefore, not all contractors have WC insurance. You may check with the Department of Labor's website at: WC Insurance Verification Search
4. Always require the contractor to obtain permits for inspections and make sure it is posted at the job site. Some counties/municipalities require a performance bond as part of the permit, which offers further protection to the consumer. You may check at the Local Government Contacts for this information.
5. A contractor is not required to obtain a bond in order to obtain a license. Bond requirements are typically required at the local level, in each municipality, to cover each individual project. (The Board requires the contractor to supply a financial statement to ensure they have enough working capital and net worth to perform a project based on the size of their monetary limit assigned to the license. They may be required to supplement with a personal financial statement and a Guaranty Agreement, should their business financial statement fail to meet the requirements. (Note: Financial statements are confidential by law, however, the "Guaranty Agreement" is considered public information).
6. Require the contractor to provide a written contract to avoid any miscommunications with the start or completion date, payment terms, change orders and warranty to provide documentation should problems arise.
2. Home Improvement - License Requirements for projects $3,000 to $24,999 (Less than $25,000)
A home improvement license is required for remodeling where the cost of the project is $3,000 to less than $25,000. This requirement has been adopted by eight (8) counties: Bradley, Davidson, Hamilton, Haywood, Knox, Robertson, Rutherford and Shelby. Even though a license may not be required to perform your work, it is encouraged to only use licensed professionals.
For example, before hiring a remodeler, make sure:
1. They have a current license as a Home Improvement or Contractor (may check at "License Search")
2. A home improvement contractor may perform work less than $25,000; a contractor with a BC-A or BC classification may perform remodeling and assigned a specific contract limit.
3. Unlike the Contractor's law, the Home Improvement law outlines many requirements for the contract format. Details of the contract law is under the Home Improvement statute, T.C.A. Title 62, Chapter 6 and Part 5:
- Must be in writing; cannot demand full payment prior to completion; no more than 1/3 deposit; cannot act as a lendor or cosign for a loan/mortgage; and must contract in the exact name as licensed.
4. A home improvement contractor must provide a $10,000 surety bond (or other financial responsibility) to be utilized by the consumer should they be awarded a judgment from civil court. In addition, proof of insurance (General Liabilty; and Workers' Compensation required if they state having one or more employees). Therefore, not all have WC insurance. You may check with the Department of Labor's website at: WC Insurance Verification Search
5. If the remodeling work requires plumbing or electrical work, they must be licensed locally, and/or have a state Limited Licensed Electrician (LLE) or state Limited Licensed Plumber (LLP), in order to obtain permits for inspections. HVAC requirements depend on the local government's requirement.
6. Always require the contractor to obtain permits for inspections and make sure it is posted on the job site.
7. A home improvement contractor may also be required to obtain a performance or permit bond, which are typically required at the local level in each municipality to cover individual projects.
8. Make sure you have their contact information. Most advertisements list only the telephone number (which may be their cell) and best to have their mailing address; if a post office box, you'll need their physical address.
3. Limited Licensed Electrician (LLE) License Requirements for projects less than $25,000
Electricians performing electrical work, where the total cost is less than $25,000, must be licensed as an Limited Licensed Electrician (LLE) and are only required or accepted in municipalities, without their own local license and inspection program. (The State Fire Marshal's office conducts inspections for electrical work performed in these areas, and permits may be obtained locally.) Always check with your local government for permit and inspections requirements.
4. Limited Licensed Plumber (LLP) License Requirements for projects less than $25,000
Plumbers performing plumbing work, where the total cost is less than $25,000, must be licensed as an Limited Licensed Plumber (LLP) and are only required or accepted in municipalities, without their own local license and inspection program. Always check with your local government for permit and inspection requirements.
5. Pre-Licensed Exam Course Providers (License Requirements)
Must be licensed by the Board in order to offer exam preparation courses, unless a state institution, to contractors taking prep classes for the license exams. Before using a provider check their License Status and Disciplinary Action.
Complaint Reporting
Complaint Form [pdf] (May use to file a complaint or report unlicensed activity)
Law References for Consumers [pdf]
Division of Consumer Affairs (CHAMP - Contractor Homeowner Accountabilty Mediation Program)
Better Business Bureau (BBB)
