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

In Tennessee, home services and remodeling contracts are governed by both state statutes and local ordinances aimed at protecting homeowners and ensuring contractor accountability. Contractors undertaking projects valued at $25,000 or more must hold a Tennessee contractor’s license, and subcontractors in certain trades (e.g., electrical, plumbing, HVAC) also require specific state licensing. Written contracts are strongly advised and often required for residential jobs, typically including detailed scopes of work, timelines, itemized pricing, and clear payment schedules. State law prohibits demanding more than one-third of the contract price as a down payment, with subsequent payments tied to project milestones or completion phases. Contracts must also include a provision for the right to cancel within three business days for projects solicited at the homeowner’s residence. Liability insurance is standard, and proof of workers’ compensation is mandatory for contractors with employees. Mechanic’s lien rights apply, so contracts should disclose the possibility of liens if payments are not made. Dispute resolution commonly begins with direct negotiation, but contracts may specify mediation or arbitration before litigation. Failure to comply with licensing or contract requirements can result in fines, contract unenforceability, or loss of lien rights. Local codes and permitting requirements may also affect contract terms, especially in urban areas. Overall, clear documentation, compliance with licensing, and risk mitigation through insurance are critical features of remodeling contracts in Tennessee.