Need a Home Services Contract in Tennessee? AroundWire Can Help

In Tennessee, home services contracts—covering work such as repairs, remodeling, HVAC, plumbing, and electrical—are subject to several key state regulations and industry standards. Contractors must hold appropriate state or local licenses: the Tennessee Department of Commerce & Insurance requires a contractor’s license for projects valued at $25,000 or more, while specialty trades (e.g., electrical, plumbing, HVAC) require additional certifications. Contracts should clearly specify scope of work, materials, timelines, and total cost. Tennessee law mandates that residential contracts over $3,000 include a written agreement; “right to cancel” clauses (generally three days) are encouraged, especially for door-to-door sales. Risk mitigation typically involves requiring general liability and workers’ compensation insurance, and clients may request proof of coverage. Payment terms often include an initial deposit (usually capped at a reasonable percentage by local practice), with subsequent payments tied to project milestones. State law prohibits contractors from requesting full payment up front. Dispute resolution often favors mediation or arbitration before litigation, and jurisdiction is typically set within the county where the property is located. Failure to comply with licensing or contract requirements can result in voided contracts and civil penalties under the Tennessee Home Improvement Contractor Act. Local building codes and permitting must also be observed, and lien rights should be addressed in the contract to protect both parties.