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So, you want to build a new home or remodel an existing one. Where should you begin?

If you have a parcel of land and architectural plans, you’re off to a good start. But you may wonder whether you need a contractor’s license to start building. In Tennessee, the answer to that question is not simple.

Some situations demand a licensed contractor and others do not. Keep reading to discover which category your project falls into.

When You Do Not Have a Traditional License

If this is your first major construction project, you may not have a traditional license. In some cases, that won’t be a problem. There are a few avenues that will allow you to move forward without this certification.

Restricted Residential Licenses

For projects of $125,000 or less, a contractor can work with a Restricted Residential License. Keep in mind that amount does not allow for a 10% bid tolerance. The total cost must include the cost of land, labor, and materials. You cannot buy one of those components as a separate venture.

If you are confident that you will keep your total costs under $125,000, a restricted license is a great choice. In rare cases, you can even receive special exemptions to increase the limit.

To obtain a restricted license, you must complete a Limited Residential Contractor course. You must also be able to provide the following:

• Financial statements
• References
• Proof of insurance
• Proof of experience

If you can provide these materials, you will receive a limited license without having to pass an exam.

Property Owner’s Permits

Do you plan to live in the home you are building or remodeling? Then you could be eligible for a property owner’s permit.

There are a few requirements to keep in mind. First, you cannot have plans to sell or lease the property. Second, you cannot have a history of building with a similar permit in the last two years.

Plan on paying several fees that correspond with the value of the home or remodel. These fees will cover HVAC and plumbing inspections. You must also be willing to submit to a monolith pour inspection for the slab and footing.

Exemptions

Some counties in Tennessee have opted out or received exemptions for contractor licensing. Do you want to learn more about your county’s requirements? Visit the website for the state’s Department of Commerce & Insurance.

When You Do Have a License

If you do have a contractor’s license, congratulations! You can disregard the previous information and move forward with planning and building your property.

With that being said, you’ll need to make sure to follow Tennessee’s strict building regulations. Here is a general outline of the state’s guidelines: 

Creating Plans

Will your final design exceed two stories or 5,000 sq. feet? If so, you must consult with a registered design professional. Projects that do not fall into that scope may use any architect or custom home builder—regardless of their registration status.

Make sure to draw plans that work with the condition, grading, and layout of your lot. From there, you can select a floor plan and design features that work for you.

Filing for a Permit

Most often, building and remodeling projects require state residential building permits. This is especially true for projects that fall within a city’s limits.

To discover whether your city requires a permit, visit the website of Tennessee’s Department of Commerce & Insurance. While you are there, make sure to ask about the state’s CORE system for help managing your licenses and permits.

Scheduling Inspections

It is not easy to keep your project on schedule and follow the state’s regulations at the same time. We recommend that you schedule inspections well in advance to avoid unnecessary delays.

You can use an online inspection scheduling system to stay on top of the details. The Department of Commerce & Insurance can provide you with a list of state-contracted inspectors.

To schedule an inspection, you will need to provide your permit number and the inspection type.

To ensure the inspection goes well (and avoid delaying the project with a follow-up inspection), follow these tips:

• Post your permits and certifications somewhere at the job site
• Ensure the work is ready and easily accessible
• Mark your lot for easy identification
• Keep the area reasonably clean and safe
• Avoid placing building materials, portable toilets, or dumpsters on the street

Following these guidelines should help you pass on the first try. If you do fail the first inspection, the next one is free. However, any further inspections will require additional fees.

Receiving a Certification of Occupancy

After you have passed all of the necessary inspections, there is one final step. You must obtain a certification of occupancy. Without this document, no person may reside in the home.

You can obtain this document by contacting the Building Inspection Division. To provide proof of your completed inspections, send an email or make an in-person visit. These documents indicate that your home is up to code and ready to be occupied.

As a side note, you should be aware that some cities have their own building codes. For example, home builders in Jackson must adhere to a unique set of guidelines.

How to Obtain Your License in Tennessee

If your construction project requires a licensed contractor but you want to perform the work yourself, there is an easy solution. Use RocketCert to obtain your contractor’s license in Tennessee!

To successfully obtain your license, you must accomplish the following tasks:

• Pass Business and Law Exam and Trade Specific Exam(s)
• Obtain general liability and worker’s compensation insurance
• Submit a letter of reference
• Prepare CPA-approved financial statements
• Complete an application package

To maintain your license, you must complete eight hours of continuing education every two years.

Fortunately, RocketCert offers a comprehensive lineup of educational materials. Our courses and books are written by industry professionals.

We can also guide you through obtaining any specialty certifications. In the state of Tennessee, there are 34 categories of building specialization. These specialties include the following:

• HVAC
• Plumbing
• Electrical
• Mechanical

Become a specialized contractor to widen the scope of projects you can accomplish. At RocketCert, we make it easy to obtain your contractor’s license in Tennessee!