Under TCA 62-6, what is the monetary threshold above which a contractor license is required for residential work?
Correct Answer
A) $3,000
TCA 62-6 requires contractor licensing for residential work exceeding $3,000 in value when performed for compensation.
Why This Is the Correct Answer
TCA 62-6 sets the threshold at $3,000 for residential contracting work performed for compensation. Any project valued at more than $3,000 requires the contractor to hold a valid Tennessee license.
Why the Other Options Are Wrong
Option B: $10,000
$10,000 is not the Tennessee residential licensing threshold. That figure appears in some other states or in Tennessee's commercial context, but TCA 62-6 residential work clearly uses $3,000.
Option C: $5,000
$5,000 is a common distractor because it is used as a threshold in several other states. Tennessee's residential threshold is lower, at $3,000.
Option D: $7,500
$7,500 has no basis in TCA 62-6. It does not correspond to any Tennessee licensing threshold.
Memory Technique
Three thousand = three syllables in 'res-i-den-tial.' Every residential job over $3,000 in TN needs a licensed contractor. Use the syllable count to lock in the number.
More tn-supplement Questions
Calculate the Tennessee workers' compensation premium for a roofing contractor with a $180,000 annual payroll and a rate of $28.50 per $100 of payroll:
How many hours of continuing education are required for Tennessee contractor license renewal?
Calculate the workers' compensation experience modification factor for a contractor with $85,000 in expected losses and $68,000 in actual losses:
Under Tennessee lien law, what is the maximum time limit to enforce a mechanics lien after it has been filed?
Under Tennessee lien law, which party has priority when multiple liens are filed against the same property?
Under Tennessee building codes, what is the maximum allowable deflection for a residential floor joist with a 16-foot span under live load?
A homeowner in Nashville hires an unlicensed contractor for $8,000 worth of electrical work. The contractor demands payment but the work fails inspection. Under TCA 62-6, what recourse does the unlicensed contractor have?
Under Tennessee building codes, what is the minimum ceiling height required for habitable rooms in residential construction?
A Tennessee contractor has 8 employees working on a residential project. The total weekly payroll is $6,400. If the workers' compensation rate for residential construction is $8.50 per $100 of payroll, what is the weekly workers' compensation premium?
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?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass