Under TCA 62-6, a Tennessee contractor's license can be suspended for all of the following EXCEPT:
Correct Answer
A) Completing projects under budget
Completing projects under budget is not grounds for license suspension. The other options are all valid reasons for disciplinary action under TCA 62-6.
Why This Is the Correct Answer
Option A is correct because completing projects under budget is not a violation of any licensing requirement — it is a positive outcome. TCA 62-6 establishes grounds for disciplinary action based on misconduct, violations of law, or failures to meet obligations, none of which include sound financial performance or cost savings.
Why the Other Options Are Wrong
Option B: Using unlicensed subcontractors
Using unlicensed subcontractors is a valid basis for license suspension under TCA 62-6. Tennessee law requires contractors to verify that subcontractors performing regulated work hold appropriate licenses.
Option C: Failure to maintain required insurance
Failure to maintain required insurance (general liability and workers' compensation) is a valid basis for license suspension under TCA 62-6. Insurance maintenance is a continuing license requirement, not a one-time obligation.
Option D: Conviction of a felony related to contracting
Conviction of a felony related to contracting is a valid basis for disciplinary action under TCA 62-6. A felony conviction — particularly one related to fraud, theft, or construction — reflects directly on a licensee's fitness to hold a contractor's license.
Memory Technique
For EXCEPT questions: cross out the word EXCEPT mentally and ask 'which of these is a GOOD thing or neutral?' Completing under budget is a good thing — it cannot be a violation. The other three are all bad outcomes that harm the public or violate the law.
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Calculate the lien amount a subcontractor can claim for unpaid work totaling $15,000 on a project where the total contract value is $85,000 and the remaining balance owed to the general contractor is $8,000:
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