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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. No underwriting is required, so everyone qualifies to buy their bond online ins just a few minutes.

Bond Type Bond Amount Cost
$10,000 Home Improvement Contractor Bond $10,000 $100
$10,000 Johnson City Building License Bond $10,000 $100
$10,000 Knoxville Electrical Contractor Bond $10,000 $100
$25,000 Memphis and Shelby County Contractor Bond $25,000 $125
$10,000 Nasvhille and Davidson County Contractor Bond Building contract under $25,000 $10,000 $100
$40,000 Nashville and Davidson County Contractor Bond Electrical, Gas/Mechanical, or Plumbing and Excavation Contractor License OR building contract of $25,000+ $40,000 $200

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

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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 this specific surety bond 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 1 year and must be renewed as long as the license is to be maintained.

More information about this specific surety bond 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 pumbing 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 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.