Under Tennessee residential contractor requirements, what is the maximum value of work that can be performed without a contractor license?
Correct Answer
A) $3,000
Tennessee allows work up to $3,000 in value without requiring a contractor license.
Why This Is the Correct Answer
Tennessee law (TCA 62-6) allows construction work valued up to $3,000 to be performed without a contractor license. Any project at or above $3,001 requires the appropriate license. This threshold applies to the total value of the project, including labor and materials.
Why the Other Options Are Wrong
Option B: No work allowed without license
'No work allowed without a license' is incorrect. Tennessee explicitly provides a $3,000 exemption threshold for minor work, recognizing that small handyman-type jobs should not require full contractor licensing.
Option C: $25,000 for specialty contractors only
$25,000 for specialty contractors only is fabricated — no such specialty-contractor-only exemption at this amount exists under TCA 62-6. Specialty contractors are still subject to the same $3,000 general threshold.
Option D: $5,000 for homeowner's primary residence
$5,000 for a homeowner's primary residence is incorrect. The homeowner exemption (where a property owner can do work on their own home without a license) is a separate concept, and even that has its own limitations. The $3,000 threshold applies to contractors, not homeowners acting as their own contractor.
Memory Technique
Think '$3,000 = 3 grand, no license needed.' Any project costing more than a used car payment requires a Tennessee contractor license. Under $3K = handyman territory; over $3K = get licensed.
More Tennessee 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
Related Study Resources
Previous Question
A Tennessee contractor's license expires on June 30th. What is the grace period for renewal without penalty?
Next Question
A Tennessee contractor has 12 employees with a total annual payroll of $480,000. If the workers' compensation rate for general construction is $8.50 per $100 of payroll, what is the annual premium?