Tennessee Contractor License Bond
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How much does a Tennessee contractor license bond cost?
Tennessee contractor license bond costs start at $100 annually. Your exact cost will vary depending on the license type and bond amount required by your licensing authority. Contractors working in Tennessee must be licensed with the state and sometimes individual counties and cities. Most city and county contractor bonds cost $100 annually while some bonds at the state level require a quick application review to determine pricing.
How do you get a Tennessee contractor license bond?
You can purchase most Tennessee contractor bonds online 24/7. If your bond requires an application review to determine pricing, you can apply online 24/7. Choose the contractor bond required for your license from the dropdown above or the table below. Information requirements for your bond form depend on your licensing authority, but you typically need to provide your contractor or construction company name, physical business address, and license type for filing approval. Once your order is processed, your Tennessee contractor bond confirmation will be sent to your email.
How fast can I get a construction contractor bond?
Our industry-leading technology and expert customer service team allow us to deliver your official Tennessee construction contractor bond faster than any other surety provider. SuretyBonds.com offers digital delivery for most Tennessee construction contractor bonds. Orders placed by 4 PM CST Monday-Friday are typically processed with same-day emailed bond delivery. If your licensing authority requires your official bond be physically issued and delivered to you, we'll ship it to your preferred mailing address.
If you have questions about Tennessee contractor license bonds, call 1(800)308-4358 to speak with a friendly surety expert. We're here to guide you through the construction license bond process so you can get back to running your business.
What is a Tennessee contractor license bond?
“Tennessee contractor license bond” is a generic term for the various construction contractor surety bonds required by regulatory agencies for state, county, or city contractor licensing. These bonds are a licensing requirement that contractors file as a guarantee they'll comply with state and/or local laws when performing construction work. Each bond form outlines its own specific requirements, but they generally protect individuals and licensing authorities from financial loss resulting from fraudulent or otherwise noncompliant contractors. The issuing surety company will pay valid claims up to the full bond amount, which the bonded contractor must reimburse.
Who needs a contractor license bond?
Contractors license bond requirements vary depending on the type of work performed and where it's constructed. Tennessee Code Annotated Title 62, Chapter 6, Section 506 requires individuals file a $10,000 surety bond before being licensed as a home improvement contractor in the state. (Learn more about the specific Tennessee home improvement contractor bond requirement and license.) Tennessee Code Annotated §62-32-105 requires fire protection sprinkler system contractors file a $10,000 bond before beginning work.
Tennessee contractors must often file separate, individual surety bonds with various county and city government offices across the state.
Who regulates licensing for contractors?
The Tennessee Department of Commerce and Insurance Board for Licensing Contractors enforces contractor license requirements at the state level. Individuals must maintain an active contractor license with the state before contracting (bidding or negotiating a price) a project with a total cost of $25,000 or more. If you have questions about the state's surety bond requirements, your contractor license application, or the status of your current license, you can call the board at 1(800)544-7693 or email [email protected].
The following cities and counties also enforce their own individual surety bond requirements. If you're a contractor in one of the cities or counties listed below, you must file a separate bond with the city or county to fulfill local compliance requirements. If you need a surety bond for a city or county not listed below, call 1(800)308-4358.
- Chattanooga requires surety bonds be filed by out-of-state contractors.
- Franklin requires a $1,000 bond amount be filed before beginning construction work in the city.
- Gallatin requires a $10,000 bond for electrical, mechanical, plumbing, gas, and excavation contractors and a $50,000 bond for general contractors.
- Goodlettsville requires general contractors file a $25,000 bond for jobs $25,000 or more or a $10,000 bond for jobs less than $25,000 while electrical, plumbing, and excavation contractors must file a $40,000 bond.
- Hamilton County requires a $10,000 bond amount be filed.
- Hendersonville requires general contractors file a $50,000 bond for jobs $25,000 or more or a $10,000 bond for jobs less than $25,000 while gas, mechanical, plumbing, pool, and excavation contractors must file a $40,000 bond.
- Johnson City requires separate $10,000 building license bonds and plumbing bonds.
- Kingsport requires a separate $10,000 plumbing contractor bond, gas installing contractor bond, and electrical contractor bond for each trade.
- Knoxville requires a $10,000 bond for electrical, mechanical, and plumbing contractors as well as an out-of-state contractor bond.
- Knox County requires out-of-state contractors file a minimum $500 bond.
- Memphis and Shelby County requires a $25,000 contractors license bond.
- Morristown requires a $2,000 electrical contractor bond, $5,000 plumbing contractor bond, and a $5,000 gas contractor bond.
- Nashville and Davidson County requires a $40,000 bond for electrical, gas or mechanical, or plumbing and excavating contractor licenses for building contracts $25,000 and larger. A $10,000 bond is required for building projects valued under $25,000.
Need a surety bond for a construction project in Tennessee?
Tennessee contractor license bonds are required for licensing compliance. If you need a surety bond before you can begin work on an individual contracted project, you might need a bid bond, payment bond, performance bond, or other type of contract bond. If you work in states other than Tennessee, we also offer contractor license bonds nationwide.
How do I update or change my contractors license bond form?
If your state, county, or city licensing authority requires your bond form to be updated, contact your surety provider to explain the needed change. If you purchased your Tennessee contractors bond from SuretyBonds.com, email [email protected] to explain the needed change.
The most common changes requested for these bonds are updating the contractor or construction company name, physical business address, or license type.
How do you renew your Tennessee contractor license bond?
You must renew your Tennessee surety bond before its current term expires to maintain your active bond as long as you're licensed to work in the area. Once you pay your SuretyBonds.com renewal invoice, renewal instructions will be emailed to you to keep your bond active for your next license term.
How do contractors apply for a license in Tennessee?
To be licensed as a contractor at the state level, individuals must complete the following steps and submit a full application to the Tennessee Department of Commerce and Insurance.
- Take the “Business and Law” and trade exams.
- Prepare a financial statement.
- Provide letters of reference.
- Have general liability insurance and worker's compensation insurance (if applicable).
- Identify the type of entity your business is, and provide the required information.
- Notarize and fill out the affidavit.
- Complete and sign your application.
- Apply online or submit your application and required fees to the board.
Tennessee Board for Licensing Contractors
500 James Robertson Parkway
Nashville, TN 37243-1150
Applications are reviewed at Board meetings, so they must be submitted by the 20th day of the month prior to the meeting to have it reviewed. Your license will be issued after board approval.
The contractor licensing requirement for your city or county will vary depending on local laws. Generally you'll be required to submit a contractor license application packet and construction bond before receiving your contractor license. Contact your local licensing authority for specific instructions.
Call 1 (800) 308-4358 to talk with a Surety Expert today.