TN Dept of Commerce & Insurance encourages caution in hiring contractors for home repair

STATE OF TENNESSEE
DEPARTMENT OF COMMERCE AND INSURANCE
BOARD FOR LICENSING CONTRACTORS
Mailing Address: 500 JAMES ROBERTSON PARKWAY
NASHVILLE, TENNESSEE 37243-1150
TELEPHONE: 800-544-7693 OR (615) 741-8307
Website: http://tn.gov/commerce/boards/contractors/
E-mail: Contractors.Home-Improvement@TN.Gov

Check out the contractor – Don’t hire the first contractor who comes along. It’s best to get at least three (3) bids, and check references (don’t rush into repairs, no matter how badly they’re needed). Be skeptical of solicitations from those with out-of-state license plates or if you are rushed by the contractor to agree to let them perform the work.
Get a written contract – Make sure the contractor’s name, address and telephone number on the contract is legitimate (not a P.O. Box address or phone answering services). Contract should include an anticipated start and completion date.
Proof of insurance – Workers’ Compensation is required by those with one (1) employee or more; also check for general liability insurance coverage.
Payment – never pay cash – Don’t pay more than 1/3 down and don’t let the payments get ahead of the work.
Permit and Inspections – Make sure the contractor obtains the local permits for inspections. The homeowner should never obtain the permit in place of the contractor! This is one of the best steps, as these code officials diligently make sure the contractors are properly licensed before releasing the permit, and in some municipalities, require bonding or code inspections. (Some local codes offices are waiving permit fees during this crisis!)
LICENSE REQUIRED BY LAW
It is good to know, a license is required by law before a contractor may even make an offer or contract. Those contracting directly with the homeowner are typically called the general (prime) contractor; a subcontractor is one who contracts directly with the licensed contractor, and not the owner. The following describes the type of license required by law:

A “Contractor’s” license is required for projects where the total cost or contract price is $25,000 or more;
A “Home Improvement” license is required for projects $3,000 to $24,999, in the following eight (8) counties: Bradley, Davidson, Hamilton, Haywood, Knox, Robertson, Rutherford and Shelby.
Electrical, Plumbing and HVAC Trades – Check with local government requirements, as these trades typically require a minimum of a local license and permit for inspections, regardless of the cost. (A Limited License for Electricians (LLE) and Plumbers (LLP) are issued by the State in most areas without a code office). A license is required by these trades for both a prime and subcontractor.