Need a Home Services / Remodeling / Interior Renovation Contract in Tennessee? AroundWire Can Help

In Tennessee, contracts for home services, remodeling, and interior renovation are typically required to be in writing for projects exceeding $3,000, as per the Tennessee Home Improvement Licensing Act. All contractors performing work valued at $25,000 or more must hold a valid Tennessee contractor’s license with the appropriate classification and monetary limit. Contracts must clearly outline the scope of work, materials to be used, project timeline, total cost, and payment schedule. State law prohibits requiring more than one-third of the contract price as a down payment before work begins, with subsequent payments tied to project milestones. Contractors are obligated to carry general liability insurance, and workers’ compensation coverage is mandatory if the contractor employs five or more workers. Tennessee law also mandates that contracts include a notice of the homeowner’s right to cancel within three business days for certain home solicitation sales. Risk factors to address in contracts include provisions for change orders, mechanisms for handling unforeseen conditions, and clear dispute resolution procedures—mediation and arbitration are preferred before litigation. Contracts should reference compliance with local building codes and permit requirements. Failure to comply with licensing or contractual statutes can result in civil penalties and unenforceable contracts. Parties are advised to verify contractor credentials through the Tennessee Board for Licensing Contractors and to document all communications and approvals in writing.