Contractor Permits and Bonds

A county legislative body, by resolution adopted by a two-thirds majority vote, may require certain contractors to register with a department of codes administration or other appropriate agency and post a permit bond before engaging in activities subject to this law.  If adopted, the contractors affected include those who contract to perform the following services:

• Construction, erection, alteration, repair, removal, or demolition of any building or structure or part thereof;
• Repair or replacement of any damage to a building or structure caused by insects or natural disaster;
• Erection or construction of signs or billboards; or
• Construction of swimming pools.  

A bond of $10,000 is required for building permits under $25,000, and a bond of $50,000 is required for permits of $25,000 or more.  A bond of $40,000 is required for all gas/mechanical, plumbing and excavation permits.  Also, if adopted, this law requires the contractor to secure a contractor's business license.  Contractors of multiple trades or contractors involved with work on more than one structure may provide one $50,000 bond to meet the requirements of the law.  Nonprofit housing ministries are exempt from this law. T.C.A. § 62-6-137.