Tennessee Contractor License Bond Requirements
Home improvement contractors in the Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby counties need to get bonded to obtain their license from the Tennessee Board of Licensing Contractors. The license allows them to work on projects between $3,000 and $25,000.
The required bond amount is $10,000. You’ll have to provide the bond in the official form of the Board. The requirement is set in the Tennessee Code Annotated Title 62, Chapter 6, Section 506. The bond is for the benefit of any person who is damaged due to the breach of a contract with the home improvement contractor. The home improvement contractor bond is continuous and should be active at all times during your licensing period.
In some cases, general contractors also need to get bonded to receive their state licenses from the Board of Licensing Contractors. If you have a primarily cash financial statement without fixed assets or if a parent company owns your business, you’ll have to supply an indemnity such as a Guaranty Agreement or a surety bond. If you choose the bond option, you’ll have to post a bond in an amount set by the Board, which would be between $500,000 and $1,000,000.
The rule is defined in the Tennessee Code Annotated Title 62, Chapter 6. The bond is in favor of the public and the state. The term is continuous until canceled.
Several cities and counties require different Tennessee contractors license classifications to get bonded, including Memphis and Shelby counties and Knoxville and Johnson City, among others.
You can see the full list of counties and cities requiring bonds and their amounts in the table below.
Bryant Surety Bonds can provide all kinds of Tennessee contractor license bonds. You can get started with your bonding process by completing our online application form.
Have to get a bond to bid on a public or private construction project? Don’t miss our contract bonds guide for a full overview.
Get a quick estimate of the cost of your bond by using our surety bond calculator below!
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How Much Does a Contractor License Bond Cost in Tennessee?
The price of your contractor license bond depends on the bond amount you have to post. You have to pay a percentage of that amount which is set on the basis of your financial strength.
Your personal credit score is the most important factor that influences your bond cost. A high score is considered an indicator of financial stability and trustworthiness.
Want to know how much your bond may cost? See the bond cost table below for ballpark estimates.
|Tennessee Contractor License Bond Costs|
|License type||Bond Amount||Surety Bond Cost by Credit Score|
|Above 700||650-699||600-649||Below 599|
|Home improvement contractors||$10,000||$100-$200||$150-$300||$200-$400||$300-$500|
|Knoxville electrical contractors||$10,000||$100-$200||$150-$300||$200-$400||$300-$500|
|Nashville and Davidson County contractors working on building projects below $25,000||$10,000||$100-$200||$150-$300||$200-$400||$300-$500|
|Johnson City building contractors||$10,000||$100-$200||$150-$300||$200-$400||$300-$500|
|Hendersonville contractors working on projects below $25,000||$10,000||$100-$200||$150-$300||$200-$400||$300-$500|
|Gallatin electrical, plumbing, gas/mechanical or excavation contractors||$10,000||$100-$200||$150-$300||$200-$400||$300-$500|
|Memphis and Shelby County general contractors||$25,000||$250-$500||$375-$750||$500-$1,000||$750-$,1250|
|Nashville and Davidson County electrical, gas/ mechanical, plumbing, and excavation contractors and building contractors working on projects above $25,000||$40,000||$400-$800||$600-$1,200||$800-$1,600||$1,200-$2,000|
|Hendersonville gas/mechanical, plumbing, excavation and pool contractors||$40,000||$400-$800||$600-$1,200||$800-$1,600||$1,200-$2,000|
|Gallatin general contractors||$50,000||$500-$1,000||$750-$1,500||$1,000-$2,000||$1,500-$2,500|
|Hendersonville contractors working on projects above $25,000||$50,000||$500-$1,000||$750-$1,500||$1,000-$2,000||$1,500-$2,500|
|General contractors (specific cases)||$500,000||$5,000-$10,000||$7,500-$15,000||$10,000-$20,000||$15,000-$25,00|
|General contractors (specific cases)||$1 million||$10,000-$20,000||$15,000-$30,000||$20,000-$40,000||$30,000-$50,000|
Apart from credit score, sureties will often also want to review the following information:
- Personal and business financial statements
- Assets and liquidity
- Industry experience
For more details about the bond price formation, check out our in-depth surety bond cost guide.
Tennessee Contractors License Requirements
For each type of Tennessee contractor license, you’ll have to meet a set of licensing requirements. They vary depending on your location and the type of license you want to obtain.