Need a Plumbing Contract in Tennessee? AroundWire Can Help

In Tennessee, plumbing service contracts typically require that all contractors hold a valid state-issued plumbing license, with additional local licensing often mandated by municipalities. Contracts must reference compliance with the Tennessee Department of Commerce & Insurance regulations and adhere to the Tennessee Plumbing Code, which largely follows the International Plumbing Code with state-specific amendments. Insurance obligations are standard: contractors must carry general liability and workers’ compensation insurance, with minimum coverage amounts often stipulated in contracts. Payment terms generally include progress payments tied to project milestones, with retainage of up to 5% permitted on private projects, in accordance with Tennessee’s Prompt Pay Act. Contracts should detail procedures for change orders and clearly define scope of work to reduce ambiguity. Risk allocation provisions, such as indemnification and limitation of liability, are common, but “pay-if-paid” clauses are subject to scrutiny and should be drafted carefully to comply with state law. Dispute resolution is frequently addressed via mediation or arbitration clauses before litigation, reflecting local preference for alternative dispute resolution. Contractors should be aware of lien rights and notice requirements under Tennessee law, which can affect payment enforcement. Overall, contracts in this category are shaped by a strong regulatory environment, with attention to licensing, insurance, and clear payment structures to mitigate risk for all parties.