Save the Date for the 2025 Summer Convention!
The 2025 Summer Convention will be held June 11-15, 2025 at The Beach Club Resort in Gulf Shores, AL. Be on the lookout for more information coming soon!
Spring Golf Tournament Registration Is Now Open!
Register for the Spring Golf Tournament at The Bear Trace at Hamilton Bay in Harrison, TN on April 24, 2025. Click here for more information!
2025 TARC Mid-Winter was a Success!
Thank you to our 2025 Mid-Winter Meeting Sponsors and Attendees! View photos from the meeting here!
2025 Mid-Winter Meeting Registration is open!
Save the Date - January 9-10, 2025 at Drury Plaza Hotel Nashville Franklin -> View more information here!
2024 TARC Fall Skeet Shoot Wrap Up
Thank you to our 2024 Skeet Shoot Sponsors and Attendees! This was a successful event! View photos here
2024 TARC Annual Convention Recap
A great time was had by all. We are busy putting together the photos and other information to share with everyone. If you have any photos that you would like to share with us from the event, please send to Chelsea Langley at clangley@asginfo.net.
Registration is now open for the 2024 TARC Convention!
We hope to see you there. Click here for more information.
Deadline for 2024 TARC Scholarship is May 15th.
Click here to submit your application today.
Scholarship Recipient Graduates from WKU!
Thank you letter from past TARC Scholarship Recipient.
Dear TARC,
I was fortunate enough to receive the Contractor’s Dependent Scholarship that TARC offers for my freshman year in 2019, as well as my junior year in 2021. I am writing this letter to show my upmost gratitude to TARC ($2,000 at least deserves a letter, right?). I am a 3rd generation “roofer”, which I use that term lightly given that I only spent a few months in the field and my mother was never in the field, nonetheless, my family has been in the industry for quite a while now. I attended Volunteer State Community College and then transferred to Western Kentucky University where I majored in Construction Management. I knew that I would likely stay in the industry and come to work at Water Control Roofing Company (which my grandfather started and where my mother and I work).
Everyone knows that college isn’t cheap, so any and all financial help I got was more than appreciated. Receiving such financial help from an association that is continuously improving the industry, that I will likely spend the rest of my working life in, felt like a warm welcome into the world of roofing. I look forward to being a member of TARC for years to come.
Sincerely,
W. Cole Pond
Water Control Roofing
2023 Summer Convention SUCCESS
Thank you to all who attended the 2023 Summer Convention in sunny Gulf Shores, AL! It was so great to see all of the families attend this year! We can’t wait for next year’s convention!
2023-2024 President's Welcome
2023-2024 President, Ashley Horner
First and foremost, thank you to everyone for their ongoing support of TARC and I’d like to encourage our colleagues and peers in the industry to consider, is now not the time to become more involved in TARC if you aren’t already doing so…?
TARC represents the roofing industry statewide, but the largest hindrance to fulfilling that mission is by not fully representing all voices of this industry.
As I mentioned at the Summer Convention the past three years, have presented three generations worth of challenges: pandemics, material supply shortages, and recessions- and yet here we are moving forward! I’m incredibly excited at the opportunity to serve TARC’s mission for the upcoming year and looking forward to this organization, and we as members, to come out stronger. I want to thank Austin Thomas for leading our organization and for his dedication to TARC this past year. I look forward to continuing working with Austin as he serves the board as Past President.
SUCCESS! If you attended or have spoken to one of the 80+ individuals in attendance at this year’s annual convention, then you already are aware of the incredible speakers and events that took place at Gulf Shores in June. A thank you to all our sponsors who were a large part in this success.
We have a lot planned for the next year to capitalize on the positive momentum and benefit TARC members. Committees are busy working to make benefits of membership greater. A strategic planning committee will be reviewing goals, missions, and benefits of TARC and presenting to the board for review to ensure the organizations goals are current and aligned with the needs of the industry. Educational opportunities/topics for the Mid-Winter Meeting are currently being explored and we encourage your input. Ideas such as federal wage rate determination/information, technology/software related to roofing industry, and updates in safety equipment innovation are just a sampling of the input already given.
We also continue to explore opportunities to promote the roofing industry to those looking at entering the trades. All continue to have issues finding good employees and it seems there has been a disconnect in recruiting the next generation. As members know the roofing industry is an excellent opportunity to make a living – TARC must continue to work and effectively communicate the message that this industry is career oriented.
Our Fall Sporting Clays scholarship event is fast approaching and set for Thursday, October, 12, 2023 at Iron Mountain in Kodak, TN. Early sign ups are encouraged as limited spots will be available and high participation is anticipated. All funds raised from this event will go towards the TARC Scholarship Fund. If you are on the fence about attending this event, a word of advice - GO! Numerous station/event sponsors, raffles, lunch, great networking, an incredible venue, and conveniently located- this event is an incredible opportunity for members and non-members of all skill sets to attend.
We’re looking forward to a strong year and excited to getting to work alongside our members for the benefit of this industry and organization.
PS if you aren’t already doing so, please follow TARC on Facebook, Instagram, and LinkedIn for updates and share posts with the organization using #tarcroof
Ashley Horner
TARC President
ashley@morristownroofing.net
2022 TARC Mid-Winter Conference
The Mid-Winter Meeting was held January 14-15 at the Cool Springs Marriott in Franklin. We had great education speakers from TOSHA, NRCA and our full-conference sponsor, Trent Cotney of Cotney Attorneys & Consultants. Please enjoy a few pictures from a great educational meeting.
TARC Skeet Shoot Was a Success!
Thank you to all of our participants and sponsors of the October 28th Skeet Shoot in East Tennessee! We had a little rainy weather, but that didn’t stop us from having some good ole competitive fun to raise money for the TARC Scholarship fund!
TARC's New President: Taylor Smoak
I just wanted to take a minute to introduce myself to everyone as your new president for 2020-2021. My name is Taylor Smoak, and I am currently employed with JDH Company, Inc. in Chattanooga, TN. I have been involved in TARC most of my life and can honestly say this organization is like a second family to me. My grandfather, Benny Helton, was a founding member of TARC. Both my grandfather and my father, Jay D. Helton have both been presidents in this organization.
The roofing industry, as I like to tell people, is in my blood and is all I have ever known. Working for my father and being in the family business has its challenges, but it has never stopped me from growing and learning more and more every day. It is my desire and goal to be a part of JDH which my father started from the ground up, alongside my brother Andrew. To follow in my grandfather’s and father’s legacy is a huge honor and I want to make them proud so I will give my best to this organization. Thank you for allowing me to serve as your president.
Construction Companies Report Experiencing Supply Chain Disruptions Due to Coronavirus
As of the time of this writing, the World Health Organization (WHO’s) has just declared the novel coronavirus (COVID-19) a global pandemic. “This is not just a public health crisis, it is a crisis that will touch every sector,” said WHO director-general Dr. Tedros Adhanom Ghebreyesus. The construction industry is one of those sectors.
China, a crucial component of the global supply chain, has been hit hardest by the spread of the virus, and attempts by the country to stem the spread of the virus have resulted in their manufacturing sector slowing to a crawl. Although it’s too early to tell what the full impact of the coronavirus will be on the global supply chain, construction companies are already experiencing disruptions.
Below, our construction lawyers will discuss the coronavirus and its impact on the global supply chain. The team at Cotney Construction Law continues to monitor the impact of the coronavirus on the construction industry, and as the situation changes, we’ll provide contractors with the knowledge they need to make informed decisions regarding their businesses.
A Break in the Chain
As revealed in a survey conducted by the Institute of Supply Management (ISM), “nearly 75 percent of companies report supply chain disruptions in some capacity due to coronavirus-related transportation restrictions.” Even more concerning, over 40 percent of respondents reported not having a plan to address supply chain disruptions from China. Although it’s good to hope for the best, construction companies must prepare for the worst.
Other Findings
Other findings include a doubling of average lead times, manufacturers in China operating at 50 percent capacity, and difficulties even getting supply chain information from China. Six in 10 respondents reported experiencing delays in receiving orders from China. Although respondents were a mix of manufacturing and non-manufacturing, the majority consisted of professionals in supply chain management roles.
Have a Team Behind You
This is only a first-round survey, and it remains to be seen how the supply chain is impacted once China’s manufacturing sector recovers and other countries become affected. As this situation develops, our law firm will be providing legal advice to help see your business through this difficult time.
In addition to diversifying your supplier base, we recommend working with a construction lawyer who can review your contracts to ensure that you are protected from rising material costs, project delays, and unforeseen circumstances like the spread of the coronavirus. Consult the experienced attorneys from Cotney Construction Law with any legal questions you may have concerning the coronavirus and its impact on your job site.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.
Cotney Construction Law is an advocate for the roofing industry, General Counsel of National Roofing Contractors Association (NRCA) and several other industry associations throughout the U.S. For more information, contact the author at 866.303.5868 or go to www.cotneycl.com.
COVID-19 and Roofing Pt 1: How to Identify and Appeal to Your Customers’ Situations
Building relationships is tough when you’re trying to keep up with production.
But when a worldwide epidemic like COVID-19 hits, it’s wise to take advantage of the opportunity to strengthen your connections and strengthen the bridge between you and your prospects.
Here are a few simple ways to develop stronger relationships with your roofing customers and prospects when the economy’s down.
Get organized.
Now is the time to get busy building stronger internal processes and organizational systems. First and foremost, make sure your roofing database is up to date.
Group your contacts by lead status.
If you have one giant database that encompasses all of your contacts, it’s time to break that database into more targeted lists:
Prospects
Former customers
Current customers
Clearly labeling and organizing your roofing prospects and customers helps better refine your company’s communications with them.
Identify age groups.
COVID-19 has a different level of impact on each generation. The New York Times reports that while nearly 40% of people hospitalized as a result of the coronavirus are aged 20-54, older adults are more at risk of more serious complications. Children 5 years old and younger can also be more greatly affected.
Knowing your prospects’ and customers’ age groups can help you determine whether to proceed with their roof repairs or replacements during this time. Be sure to make note of each resident’s age in your prospects’ and customers’ profiles–millennials may have young children while members of Gen X may be caring for their elderly parents. If you’re not sure, do some research and estimate ages when necessary.
Stay up to date with your state government’s mandates.
If you’ve developed professional relationships and friendships with your customers and prospects, you likely know their occupations. Not only do you need to keep an eye on your government’s mandates for your own business and family operations, but staying informed lets you know which of your prospects and customers are still in the workforce and who may be temporarily unemployed.
Being aware of your contacts’ situations allows you to predict how their situations may affect your business.
Know how to communicate with your roofing customers and prospects.
Everyone’s situation is different. Some people are able to work from home. Some adults are out of work with no income due to temporary business shutdowns. Many people are trying to balance everyday life while their kids are stuck at home with no school or childcare. Here’s a breakdown of just a few of people’s current scenarios:
The elderly
One of the generations must susceptible to the current epidemic, the elderly are forced to stay indoors unless absolutely necessary. Many grocery stores across America have reserved the first one or two early morning hours strictly to provide a safer environment in which the elderly may complete their shopping.
These people are the least likely to pursue or accept any services that require interaction with others at this time. The best way to respect elderly contacts’ situations is by giving them a call to explain that your company has their best interests at heart.
Let them know if nearby grocery stores offer online ordering and pickup, you’re willing to deliver their orders. You can also assure them they can leave payment outside and since you don’t want to put them at greater risk, you’ll ring the doorbell and leave their groceries on the porch.
Parents with young children
As state governments roll out new mandates on a daily basis, childcare is becoming more difficult to find. If you know your customers have young children, touch base with a phone call. They’ll likely welcome the adult interaction, even if it is just over the phone.
The temporarily unemployed
Once you’ve identified your contacts’ occupations, note who is likely unemployed during the COVID-19 pandemic.
One way to ease their anxiety during this tough time is by sending them an email of available resources to keep themselves and their families occupied while building relationships with one another. From a list of card games to limited-time offers, any little thing that can provide a positive distraction is helpful. It’s important that they know they’re not alone and that they will get through this.
Avoid sales pitches.
Communication is key to building any lasting relationship. But in the midst of a pandemic, people are not looking to be sold. They want to know that others care about their well-being, not their financial status.
When communicating in any way with prospects during this time, keep the conversation casual. Focus on the person’s family. Share a bit about your personal situation and how you’re remaining optimistic. Bridging that gap, building that connection speaks volumes to the person on the other end of the line.
By connecting with contacts on a more personal level, you’re instantly placing your company above the rest. They’ll remember the good you’re doing, not the business you’re trying to generate. Be a light of hope, their silver lining in these cloudy times.
NRCA Toolbox for Managing COVID-19
We hope you, your company’s employees and your loved ones are safe during this unprecedented time. As the COVID-19 pandemic continues to spread, NRCA is implementing a series of measures to ensure the health of our members, customers, associates, staff and communities.
These measures include limiting the number NRCA staff coming into the office and allowing them to work remotely, evaluating which upcoming meetings and conferences to hold or cancel, and restricting travel to only that which is absolutely necessary. At the same time, we will make every effort to keep you informed of important information in as timely a manner as possible. Please refer to the NRCA website frequently as we have added a new section addressing COVID-19 and will be adding important updates as we receive them. I also am providing links to a recently developed NRCA toolbox talk and NRCA recommendations for managing COVID-19.
NRCA, its websites and customer service department will remain operational; we will continue to evaluate our operations as the situation develops. We will do our best to continue to provide timely customer service, but there could be delays in responding to members’ and customers’ requests for assistance and shipping NRCA Bookstore products and membership materials. We ask for your patience while we work hard to ensure you receive your products, assistance and information as soon as possible.
We also will be sending a survey next week to contractor members to gather specific feedback about how this crisis is affecting them. Contractors—please complete and return the survey. We will post the survey results on our website, too.
Thank you for being part of the NRCA community. We will do everything in our power to resume normal operations as soon as it’s prudent to do so.
NRCA Letter to White House says Roofing is Essential
NRCA led an industry wide effort to send a letter to President Trump today to express strong concerns regarding state and local regulations governing “essential businesses” and “essential workers” during the COVID-19 public health crisis.
The letter asks the administration to provide clear guidance to the states regarding what an essential industry and essential worker is and makes it clear the roofing industry should specifically be cited in any guidance as essential. The letter also has been provided to each regional, state and local NRCA affiliate with permission to use as a template to communicate this message to their state governments.
Tips for Hiring a Contractor
Board for Licensing Contractors
WARNING! Beware of contractors making door-to-door or telephone solicitations offering to make repairs to roofs and other storm damage to your home. Often these contractors are high pressure salesmen, without experienced employees, who get you to contract and then they hire inexperienced, unlicensed individuals as “subcontractors”. Never sign over the insurance check; do not pay with cash, or pay the total charges before the work is complete. The Home Improvement law prohibits contractors from asking for a down-payment of more than 1/3 of the total contract. See also the new guidelines section required by roofing contractors performing work to be paid from insurance claims listed below in the “General Information”.
To verify a license of a Contractor; Home Improvement Contractor; Limited Licensed Electrician or Limited Licensed Plumber, you may do so from our website at “Verify a License” and you may use the following “Search Tips” or contact our office at 1-800-544-7693 should you need assistance.
To check the complaint history of a contractor, contact the Board’s “Complaint Section” by telephone at 1-800-544-7693 or by email at Contractors.Home-Improvement@TN.Gov Closed complaints with disciplinary action may be reviewed at: Disciplinary Actions
Check Out Before Hiring!
Before you hire anyone to perform any kind of construction or remodeling work to your home, be sure to check them out first before hiring. This includes making sure they are properly licensed with our Board (see section below to know “When is a License Required”). Many contractors will say and advertise that they are licensed, bonded and insured, however, this may be their county “Business License” which is easily obtainable by simply paying the $15.00 tax and nothing else; insurance does not cover poor workmanship; and a bond is rarely obtained unless the local permit office requires it. Some contractors may be licensed by our Board, but not financially covered to perform the entire project. If they give you more than one contract or several “invoices”, this is often a red flag that they are trying to skirt the law to perform work over their monetary limit. In some cases, contractors may obtain a license to perform the work themselves, without having any employees, but may end up subcontracting the work to individuals (to avoid paying workers’ compensation insurance and/or taxes). Always ask the contractor who will be performing the actual work and for their subcontractors references. Whenever subcontractors are hired by the contractor, they may also be required to be licensed, such as electricians or plumbers, with local government in order to obtain separate permits for inspections. Review the License Search Tips to confirm license status, limit and classification. There are more tips below to help with hiring a contractor, as well as with the Division of Consumer Affairs brochure.
Even after checking out a contractor, you may experience problems after you have hired a contractor or if they took payment without completing or even starting work. When this happens, don’t be embarrassed to report them to us. Many are con-artists who know how to manipulate and take advantage of people. These are the ones who give good contractors a bad name! You can take control by filing a complaint and getting them reported before others are harmed. As far as workmanship, absent a written warranty, there is a one (1) year implied warranty pursuant T.C.A. 47-2-314 (see link below to the LexisNexis Law website). Many problems caused by contractors may require obtaining an attorney to take civil action. Contractors accepting payment without performing the work may be prosecuted by local authorities for felony theft.
When Is A License Required?
Contracting license requirements depend on the total dollar amount of the project (materials, labor and profit). Licenses regulated by our Board are: Contractor; Home Improvement; Limited Licensed Electrician; and Limited Licensed Plumber. Their requirement to be state licensed also depends on the total cost, as well as, the county where the project is located. The following is a summary of when a state license from our Board is required:
Contractor – A “Contractor’s” license is required if the total project is $25,000 or more
A contractor’s license differs from other licenses; it has a classification and monetary limit assigned. This law covers both “prime” (general) contractors and their “subcontractors”. A contractor who contracts directly with the homeowner is always considered the prime.
Construction Manager’s are required to be licensed as a contractor to oversee a project.
Subcontractors are those who contract directly with another contractor and not with the owner. The only subcontractors required to be licensed as a contractor are those portions $25,000 or more to perform the following:
Electrical, Mechanical, Plumbing, HVAC, and Roofing projects
Masonry subcontractors are required to be licensed for projects $100,000 or more.
Geothermal HVAC Well Drillers must have a license from Tennessee Department of Environment and Conservation.
Home Improvement – A “Home Improvement Contractor’s” license is required for projects $3,000 to $24,999 in nine (9) counties(Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby).
A license is needed in order to perform residential remodeling or to make repairs. This includes replacement, alter, conversion, modernization, improvement, or addition to any land or building, such as, driveways, swimming pools, porches, garages, landscaping, fences, fall-out shelters, roofing, painting and other improvements adjacent to the dwelling.
Electrical – Check with your local government for projects less than $25,000 for their license, permit and inspection requirements. A state “Limited Licensed Electrician” may be required in some municipalities without a local codes inspector. The Division of Fire Prevention perform inspections in these areas.
Plumbing – Check with your local government for projects less than $25,000 for their license, permit and inspection requirements. A state “Limited Licensed Plumber” may be required in some municipalities without a local codes inspector. The Division of Fire Prevention perform inspections in these areas.
Note: The state does not have a HVAC license for projects less than $25,000. Typically, an electrical license (LLE) is required to make connections. Check with your local government for their licensing and permits for inspections requirements.
Tips To Hiring A Contractor (Summary)
Hire only licensed contractors – check at: https://verify.tn.gov/ and ask if the licensed contractor will be performing the work with their employees or if the work is subcontracted out.
See “Search Tips” on looking up licensees to ensure they have not forged the license certificate. Checking online ensures it is active, not revoked, and the type of license.
Check with local government for codes, permits, inspections and business licenses
Check references and their complaint/discipline history (Reg Boards, BBB, search their name on the internet, etc.). Always obtain more than one estimate.
Get a written contract (Contract Information)
Ask who will be performing the work (often the contractor is a “salesman” and may subcontract the work to inexperienced individuals misclassified as a subcontractor paid in cash, for the contractor to avoid taxes).
Roofing Services and Insurance Payment Requirements (Eff. July 1, 2012)
Make sure the contractor obtains a permit for code inspections (Code Information)
Ask for proof of insurance; workers’ comp is required if they have one (1) employee (WC Verification)
Never pay cash; and do not pay the total amount before the work is complete or turn over your insurance check! (consider paying with credit cards with special protection). Law prohibits requiring more than 1/3 down payment
If a contractor takes your money without performing the work, this may be considered a felony (theft) violation, and see the steps in the law to prosecute through local district attorney’s office.
It is unlawful for an “unlicensed” contractor to file a lien
Note – If your home was built before 1978, please check on important Lead Based Paint procedures.
For those who have experienced problems or want to report unlicensed activity, you may skip this section and go directly to the”Complaint Filing Process” for resources to report a complaint and review the steps to the complaint process. Unfortunately, the complaint process does not take the place of civil action and you may need to hire an attorney on cases where monetary judgments or consumer protection law damages are an issue. The Board’s jurisdiction is limited to licensing law violations, however, we encourage consumers who have been wronged or received a judgment, to report this to us, as well as the Better Business Bureau (BBB). This offers protection to the public from unscrupulous activity. You are welcome to contact our Complaint Section Coordinator at 1-800-544-7693 or send an email (see “Staff Contacts“). You may want to consider consulting with an attorney since our Board may only take disciplinary action and cannot award judgments.
Beware of Unscrupulous Contractors!
Beware of unscrupulous contractors making door-to-door solicitations offering to make repairs to roofs and other storm damage to your home, especially after a disaster. If you receive telephone offers while on the “Do Not Call” registry, you should report them to the “Tennessee Regulatory Authority“. Never sign over the insurance check; do not pay with cash; and do not pay the total charges before the work is complete.
Contact the Board’s Complaint Section to check on or to report a contractor at 1-800-544-7693 or by email at Contractors.Home-Improvement@TN.Gov
Roofing Services Requirements Consumers have the right to cancel a roofing contract within three (3) days after a claim is denied by the insurance company. Roofing contractors whose work is covered by insurance will need to include specific language in their contracts to this effect.
FYI – Just because a contractor list a local business address does not mean they will remain until the work is completed. Many contractors may set up a short term business location at an office building with a month-to-month lease, as well as, use their building management’s telephone services; or their street address provided to you may be for a rented mail box; check the license plate on vehicle; and research the contact information on the internet.
Permits – These are required to be obtained by the contractor and not the homeowner. If they insist on you obtaining the permit, or advise that one is not needed or too expensive, this is usually a sign that they are not legal to perform work. Permits have been issued in the past during a storm disaster at no cost to encourage the importance of making sure the work is performed right and according to codes.
Prime and Subcontractors – The one making the offer to the homeowner is considered the prime or general contractor and they are required to be licensed even if they hire a subcontractor to perform the work. Subcontractors work under the prime’s license, unless, it is electrical, mechanical, plumbing or HVAC work; then both the prime and sub would need to be licensed as required by local and state law. Many prime contractors will categorize their employees or day laborers as “subs” to get out of providing workers’ compensation insurance or paying taxes. This type of violation may be reported to the Department of Labor and Workforce Development.
Check Disciplinary Action / History of Complaints
You may check the complaint history of a contractor by contacting our office. The Board may take disciplinary action for law violations and these cases are posted online. Complaint cases with an “OPEN” status (those still under investigation) are not listed on the website, as well as dismissed complaints.
The Department compiles a list of complaints with disciplinary action for all the the Regulatory Boards in their monthly and archived activity reports. In addition, the Board provides a list showing actions from formal hearings (cases overseen by an Administrative Law Judge) with revoked and license suspensions. Various lists have been compiled below for your convenience, as follows:
Revoked/Suspended Licenses (pdf)
This is a list of “formal” action taken by the Board after the case has been closed. Decisions by the Board on open complaint cases cannot be listed until after the Board conducts a formal hearing pursuant the Uniform Administrative Procedures. This information is also included on the “Disciplinary Actions” on the website.
Disciplinary Actions
Disciplinary action taken at the regularly scheduled board meetings is listed within 30 days after the case is closed. Note: Disciplinary action is not published until the case has been closed. Refer to “Disciplinary Reports” for all actions of closed cases. Note: Consumers may also check with our office to check a contractor for complaints with the “Complaint Section”; we will not have specific details of “open” cases while the investigation is in process, however, you may check their complaint history on open and dismissed cases with no disciple or letters of warnings.
Open Complaints or No Discipline
Not all cases result in disciplinary action. Depending on the complaint, many may receive a letter of warning or dismissed due to lack of jurisdiction. Cases that are still open have limited public information available. You may contact our Complaint Section Coordinator at 1-800-544-7693; or the direct line is (615) 532-3996; or by email to check the complaint history.
Better Business Bureau (BBB)
The Better Business Bureau (BBB) serves as a resource to check and also report a complaint. We encourage consumers to report to them, as well as to our Board. The BBB issues many public notifications to warn others of scams. (See alerts below.)
Licensed, Insured and Bonded – Information
While many contractors may be licensed, typically more than one license is required to perform work. Due to printing technology, always check to ensure the license certificate has not been forged with a different expiration date or name. Look for licenses by both the state and local governments (state contractor’s license; county and city business license for taxes; county and city codes license for permit, etc.) As part of the licensing process, insurance obtained by the contractor may not be helpful to the consumer unless their work caused damage. For example, depending on the type of coverage, general liability may only cover third party injuries. You may want to contact your insurance agent for supplemental coverage unless the contractor has provided proof of their coverage. In addition, the contractor working on your project may not have covered themselves with workers’ compensation insurance, since they may obtain an exemption. Lastly, unless a bond is issued for your project at the local level (as part of the permit), a bond may not have been obtained or even required. The Home Improvement licensees are required to provide $10,000 proof of financial responsibility and this may be in the form of a surety bond or they may obtain an Irrevocable Letter of Credit; property bond; or even a cash bond. Verify state licenses online at: https://verify.tn.gov/
Note: No one may use the license of another contractor (including relatives) and all contracts must be in the exact name as licensed.
Checklist – Before Hiring A Contractor
Contractor has a current unexpired “Contractor’s” license (may check at “License Search“).
Note: Always check the license pocket card to see what “type” of license and the “name” listed, to ensure a contractor does not attempt to use someone else’s license. Most licenses look the same for a security guard, auctioneer, barber, fire sprinkler, etc., however, it will identify whether it is from the “Board for Licensing Contractors”. Local government licenses, such as a business tax license and a building permit for inspections may also be required.
Contractor has the acceptable license limit and classification:
Classification: BC-A or BC or BC-B allows “Residential” building;
Monetary Limit: The amount approved for their license is based upon their financial statement, insurance, exam and experience. The monetary limit must cover the total contract or bid price (including profit, materials and labor). Contracts cannot be split into phases to circumvent the law of the total project cost.For example, if your contractor has a classification such as BC-A/r and the limit on their license states $70,000, they would NOT be legal to build a house when the total cost or amount of the contract is $150,000. This would be considered unlicensed contracting. In addition, you may not be required to pay the full amount of the contract, as the law in TCA 62-6-103 only allows documented expenses to be recovered by an unlicensed contractor by the court. A contractor exceeding their limit does not have the right to file a lien.
If the work requires plumbing or electrical work, your contractor is required to have employees or hire subcontractors licensed locally, and/or have a state Limited Licensed Electrician (LLE) or state Limited Licensed Plumber (LLP), in order to obtain permits for inspections. HVAC requirements less than $25,000 depend on the local government’s requirement or may be required to have a state LLE.. Note: Ask your contractor for each of the subcontractors license information! The contractor would not be licensed to perform unless they have an additional license or classification.
Proof of Valid Insurance – A licensed contractor must provide proof of General Liability insurance at the time of renewal as a condition of license; Workers’ Compensation (WC) insurance is only required if they disclose having an employee (the owner of the license may register for an exemption). Therefore, you must ensure their insurance coverage is active and not canceled. For workers’ comp, check with the Department of Labor’s website at: WC Insurance Verification Search
Permits for Inspections – Always require the contractor to obtain permits for inspections and make sure it is posted at the job site. Some counties/municipalities require a performance bond as part of the permit, which offers further protection to the consumer. You may check at the Local Government Contacts for this information. Effective October 1, 2011, the Residential Building Code Program may be in place for your area!
Bond – A “contractor” is not required to obtain a bond at the state level in order to obtain a license (one is required for “Home Improvement” licensees). Bond requirements are typically required at the local level, in each municipality, to cover each individual project. The Board requires the contractor to supply a financial statement to ensure they have enough working capital and net worth to perform a project based on the size of their monetary limit assigned to the license. (Note: Financial statements are confidential by law and not considered a matter of public record. A subpoena with a protective order would be required.)
Written Contract – Require the contractor to provide a written contract to avoid any miscommunications with the start to completion date, payment terms, change orders, right to cancel without penalty and warranty information, to provide documentation should problems arise. Another concern, ensure the contract covers installation costs allowances, materials and labor. See also the law relative to recent contract requirements for Roofing Services Contracts and Insurance Payment Requirements (Eff. July 1, 2012)
COMPLAINT REPORTING
See the “Complaint Resources” for information on filing a complaint with the Board and an explanation of the process. This includes reporting the contractor to our Board for license violations, or to report the complaint to the Division of Consumer Affairs to have their office attempt mediation.