Need a Home Services / Plumbing Contract in Tennessee? AroundWire Can Help

In Tennessee, contracts for home services in the plumbing sector are shaped by state and local regulations designed to protect both consumers and contractors. All plumbing work valued at $25,000 or more requires a Tennessee contractor’s license with a plumbing classification issued by the Tennessee Board for Licensing Contractors; for projects below this threshold, a limited license or local registration may suffice, but many municipalities impose stricter standards. Contracts typically must be in writing for clarity and compliance, especially for larger projects, and should detail the scope of work, materials, timeline, payment schedule, and warranty provisions. State law mandates that contractors maintain general liability insurance and, if employing others, workers’ compensation coverage. Payment terms often include a deposit (commonly capped at a percentage of the total contract price) with progress payments tied to project milestones. Tennessee’s “Prompt Pay Act” requires timely payment to contractors and subcontractors. Risk factors in this sector include liability for property damage, code compliance, and adherence to plumbing standards as enforced by local building inspectors. Dispute resolution is often addressed via mediation or arbitration clauses, though Tennessee courts are available for unresolved disputes. Contracts should reference compliance with the Tennessee Home Improvement Licensing Act and local permitting requirements, and may include provisions for change orders, termination, and remedies for breach to align with state norms and reduce risk exposure.