A contractor is installing a septic system for a new home in rural Tennessee. The estimated cost is $8,500. According to TCA 62-6, what licensing requirement applies?
Correct Answer
A) No license required - below threshold
Since $8,500 is below the $25,000 threshold in TCA 62-6-103, no contractor license is required.
Why This Is the Correct Answer
Under Tennessee Code Annotated (TCA) 62-6-103, contractor licensing is only required when the total cost of construction, alteration, repair, or improvement exceeds $25,000. Since the septic system installation costs $8,500, it falls well below this threshold. Therefore, no contractor license is required for this project, making option A correct according to Tennessee state law.
Why the Other Options Are Wrong
Option B: Residential contractor license required
A residential contractor license is not required because the project cost of $8,500 is below the $25,000 threshold established in TCA 62-6-103. Residential contractor licensing only applies to projects exceeding this monetary limit, regardless of the type of residential work being performed.
Option C: Specialty contractor license required
A specialty contractor license is not required because the septic system installation cost of $8,500 falls below the $25,000 threshold in TCA 62-6-103. Even though septic work could be considered a specialty trade, the licensing requirement is triggered by project value, not work type.
Option D: General contractor license required
A general contractor license is not required because the project cost of $8,500 is significantly below the $25,000 threshold established in TCA 62-6-103. General contractor licensing requirements are based on project value exceeding this limit, not on the scope or complexity of the work.
Memory Technique
Remember '25K Tennessee' - projects under $25,000 in Tennessee don't need contractor licensing, like a quarter of $100K.
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