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Tennessee Contractor License Bond

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How much does a contractor license bond cost in Tennessee?

Although Tennessee contractor license bond amounts vary based on the license type and the obligee requiring the bond, the cost applicants will pay is between $100 and $200 for most Tennessee contractor bonds. The exception is Hendersonville's $50,000 bond, which requires underwriting consideration to determine the applicant's premium. However, the majority of contractor bonds in Tennessee do not require underwriting, meaning everyone qualifies to buy their bond online in just a few minutes.

Bond Type
$10,000Home Improvement Contractor Bond
$10,000City of Gallatin Contractor Bond Electrical, Plumbing, Gas, Mechanical and Excavation Contractor
$50,000City of Gallatin Contractor Bond General Contractor
$10,000City of Hendersonville Contractor BondBuilding Less Than $25,000
$40,000City of Hendersonville Contractor BondGas/Mechanical, Plumbing, Excavation, Pool
$50,000City of Hendersonville Contractor BondBuilding $25,000 and More
$10,000Johnson City Building License Bond
$10,000City of Knoxville Electrical Contractor Bond
$25,000Memphis and Shelby County Contractor Bond
$10,000City of Nashville/County of Davidson Permit BondBuilding Under $25,000
$40,000City of Nashville/County of Davidson Permit BondElectrical, Gas/Mechanical, or Plumbing & Excavation; Building $25,000 and over

Home Improvement Contractor Bond

Visit our home improvement contractor bond page for an in-depth look at these bonds.

This bond ensures that the principal (home improvement contractor) will adhere to all state laws and the rules and regulations listed in Tennessee Code Annotated Title 62, Chapter 6, Section 506, in addition to completing all projects in accordance with the contractual agreement. If the principal violates the contract agreement and a consumer is harmed, a claim can be brought against the bond. If the claim is found to be valid, the surety will pay for all damages up to the full bond amount; however, the principal must reimburse the surety in a timely manner.

The principal is required to post a $10,000 bond. This bond is continuous until canceled, and the surety must give the state 30 days' notice prior to cancellation.

Johnson City Building License Bond

Johnson City, Tennessee, requires contractors to post a building license bond before accepting any construction jobs. This bond protects the obligee (Johnson City) from any damages or accidents that may be caused by the principal’s (contractor’s) failure to maintain safe conditions during construction projects.

The principal is required to post a $10,000 surety bond. This bond is continuous until canceled, and the surety must give the city 30 days' notice prior to cancellation.

More information about Johnson City Building License bonds can be found here.

Knoxville Electrical Contractor Bond

The electric contractor’s bond is a requirement to be certified to do electrical work in Knoxville, Tennessee. This bond ensures that the principal (electrical contractor) will comply with all city laws concerning electrical work. If the principal violates any rules or ordinances, he or she will be held responsible to pay the City of Knoxville for all defective work. This bond expires after one year and must be renewed as long as the license is to be maintained.

More information about Knoxville Electrical Contractor bonds can be found here.

Memphis Contractor Bond

The Memphis, Tennessee, contractor’s surety bond is required by the Memphis and Shelby County Office of Construction before a contractor can begin work. This bond holds the principal (contractor) accountable for performing honest work and fulfilling all obligated duties required by the Memphis and Shelby County Technical Codes. If the principal does not follow all provisions accordingly, customers may file a claim to receive compensation from the principal. This bond will remain in full force unless canceled or terminated.

To cancel this bond, a written notice must be submitted to the obligee by the surety 30 days prior to the cancellation date.

The cities of Memphis and Shelby, Tennessee, require contractors to post construction code bonds as well.

City of Nashville and Davidson County Contractor Bond

A surety bond for contractors in Nashville or Davidson County is required in an amount of either $10,000 or $40,000, depending on what the bond is for. A $40,000 bond is required for electrical, gas or mechanical, or plumbing and excavating contractor licenses or building contracts $25,000 and larger, while a $10,000 bond is required for building projects valued under $25,000. Both of these bonds are issued instantly online for $100 or $200, depending on the selected bond amount. Contractors may also save 25% on their bond's subsequent years by extending their term for multiple years. Nashville and Davidson County contractor bonds are continuous and may be canceled by the surety at any time with 10 days’ written notice to the Department of Codes and Building Safety.

Need a surety bond for a construction project?

Payment bonds and performance bonds are often required for specific construction projects. No matter the state, SuretyBonds.com can get you the bond you need for your next job.

How to get a contractor’s license in Tennessee

  1. Pass the required exams. Everyone must pass the Business & Law exam and certain contractors will need to take an additional exam specific to their trade.
  2. Prepare the correct financial statement based on your monetary limit.
  3. Provide letters of reference and proof of insurance.
  4. Identify the type of entity your business is and provide the required information based on your type of business.
  5. Complete and sign your application and have it notarized.
  6. Submit your application along with a $250 application fee to:
    Tennessee Board for Licensing Contractors
    500 James Robertson Parkway
    Nashville, TN 37243-1150
  7. The board will review your application and might require an interview.
  8. Your license will be issued in approximately four to six weeks.

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