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The Home Improvement law prohibits contractors from asking for a down-payment of more than 1/3 of the total contract.
The Board can fine an unlicensed contractor up to $5,000 per offense.
A Tennessee contractors license is required BEFORE bidding or offering a price, for projects $25,000 and up (includes materials and labor), as a prime (general) contractor; and also subcontractors performing electrical, mechanical, plumbing, HVAC, roofing and masonry are also required to be licensed as a contractor,
Notice: Contractors taking money without performing work may be prosecuted by law enforcement as theft pursuant T.C.A. 39-14-105 (see Theft and Fraud law).
A homeowner of the residential property may perform work themselves ( individual use), without a contractors license, as long as the residential structure is not open to the public; or for sale, lease or rent). Allowed one homeowner permit once every two (2) years.
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A demolition contract is a legally binding agreement between a property owner (the client) and a contractor tasked with the demolition work. This contract outlines the scope of work, project timeline, cost, safety measures and responsibilities of both parties.

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