What is the minimum bond amount required for a Tennessee residential contractor license?
Correct Answer
B) $10,000
Tennessee requires a minimum surety bond of $10,000 for residential contractor licensing.
Why This Is the Correct Answer
TCA 62-6 requires residential contractors in Tennessee to obtain a minimum surety bond of $10,000 before a license is issued. This bond protects consumers in the event of contractor default or code violations.
Why the Other Options Are Wrong
Option A: $25,000
Option A ($25,000) is incorrect. $25,000 is the maximum monetary jurisdiction of the Tennessee Contractor Licensing Board for consumer complaints, not the bond requirement. This is one of the most common number-swap errors on the exam.
Option C: $15,000
Option C ($15,000) is incorrect. $15,000 does not correspond to any standard bond threshold in TCA 62-6 for residential contractors. It is positioned to tempt candidates who are uncertain between $10,000 and $25,000.
Option D: $5,000
Option D ($5,000) is incorrect. $5,000 is too low. While some states accept smaller bonds, Tennessee sets the floor at $10,000 to provide meaningful consumer protection.
Memory Technique
Bond = $10,000. Complaints = $25,000. Remember: a bond is your 'deposit' to get started — a smaller, foundational number ($10K). Consumer complaints go higher ($25K) because they represent actual damages. Small to start, bigger for disputes.
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 homeowner contracts with a Tennessee residential contractor for a $45,000 home addition. Under state law, what is the maximum down payment the contractor may legally request?
Next Question
A Tennessee residential contractor completes a $75,000 home addition project. The homeowner refuses to pay the final $15,000. How many days does the contractor have to file a mechanic's lien after completion of the work?