Page 1 of 101
TENNESSEE BC‑B COMMERCIAL CONTRACTOR LICENSE FINAL EXAM
QUESTIONS WITH DETAILED- VERIFIED ANSWERS- ALREADY
GRADED A+
Construction Management & Trades Licensing / Commercial General
Contractor (BC‑B) / Business & Law for Construction
This examination covers the full scope of the Tennessee BC‑B
(Commercial) contractor license: classification system (BC, BC‑B, BC‑b
small commercial, BC‑A, BC‑C); monetary limits and financial
requirements; business & law (contracts, change orders, liens,
prompt‑pay); bonds, insurance, and workers’ compensation; licensing
application, renewal, and continuing education; OSHA/TOSHA safety
(fall protection, scaffolding, excavation, LOTO, silica); environmental
regulations (lead RRP, energy codes); project management (scheduling,
quality control, submittals, punch lists); Tennessee Code Annotated
Titles 62 and 66; IBC, IECC, NEC code adoptions; and reciprocal
agreements.
Section 1: License Classifications & Scope of Work
Question 1
What is the minimum project cost threshold that requires a Tennessee
contractor to be licensed for commercial construction work?
A. $15,000
, Page 2 of 101
B. $20,000
C. $25,000 ✔
D. $50,000
RATIONALE: Tennessee law requires contractors to hold a license when
the total project cost (inclusive of materials, labor, and profit) is $25,000
or more. This applies to all classifications, including commercial (BC‑B)
and industrial (BC‑C). Projects below this threshold do not require a
state license, though local permits may still be necessary.
Question 2
A contractor holds a BC‑B (Commercial) license. Which of the following
best describes the scope of work permitted under this classification?
A. Construction limited to single‑family residences only
B. Construction of commercial structures without any height or cost
limitations
C. Construction, repair, and alteration of commercial buildings and
multi‑family structures exceeding four units or greater than three stories
in height ✔
D. Only electrical and mechanical installations in commercial
buildings
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RATIONALE: A BC‑B license authorizes the holder to contract for the
construction, erection, alteration, repair, or demolition of any building or
structure for use and occupancy by the general public, including
residential construction with more than four units or greater than three
stories in height.
Question 3
What is the maximum contract amount per project for a BC‑b (Small
Commercial) license in Tennessee?
A. $500,000
B. $750,000
C. $1,500,000 ✔
D. $3,000,000
RATIONALE: The Tennessee BC‑b Small Commercial license permits
work on commercial projects with a contract amount below $1,500,000.
For larger, unlimited commercial work, the full BC‑B license is required.
Question 4
Which of the following is a correct statement regarding the BC‑A
(Residential) license?
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A. It allows construction of any commercial building
B. It is limited to construction of one‑ to four‑family unit residences not
exceeding three stories in height ✔
C. It requires passing the same exam as BC‑B
D. It has no monetary limit
RATIONALE: Residential building contractors (BC‑A) are limited to the
construction, remodeling, repair, or improvement of one‑, two‑, three‑, or
four‑family unit residences not exceeding three stories in height and
accessory use structures.
Question 5
A contractor with a full BC (combined) license may bid on projects
outside the building classification, such as HC (Heavy Construction).
What is the primary restriction on this authority?
A. They must obtain a separate HC license
B. They cannot bid on projects over $1,000,000
C. They may bid any project within their assigned monetary limit,
except that they must subcontract portions of electrical, plumbing,
HVAC, and masonry work over $25,000 ✔
TENNESSEE BC‑B COMMERCIAL CONTRACTOR LICENSE FINAL EXAM
QUESTIONS WITH DETAILED- VERIFIED ANSWERS- ALREADY
GRADED A+
Construction Management & Trades Licensing / Commercial General
Contractor (BC‑B) / Business & Law for Construction
This examination covers the full scope of the Tennessee BC‑B
(Commercial) contractor license: classification system (BC, BC‑B, BC‑b
small commercial, BC‑A, BC‑C); monetary limits and financial
requirements; business & law (contracts, change orders, liens,
prompt‑pay); bonds, insurance, and workers’ compensation; licensing
application, renewal, and continuing education; OSHA/TOSHA safety
(fall protection, scaffolding, excavation, LOTO, silica); environmental
regulations (lead RRP, energy codes); project management (scheduling,
quality control, submittals, punch lists); Tennessee Code Annotated
Titles 62 and 66; IBC, IECC, NEC code adoptions; and reciprocal
agreements.
Section 1: License Classifications & Scope of Work
Question 1
What is the minimum project cost threshold that requires a Tennessee
contractor to be licensed for commercial construction work?
A. $15,000
, Page 2 of 101
B. $20,000
C. $25,000 ✔
D. $50,000
RATIONALE: Tennessee law requires contractors to hold a license when
the total project cost (inclusive of materials, labor, and profit) is $25,000
or more. This applies to all classifications, including commercial (BC‑B)
and industrial (BC‑C). Projects below this threshold do not require a
state license, though local permits may still be necessary.
Question 2
A contractor holds a BC‑B (Commercial) license. Which of the following
best describes the scope of work permitted under this classification?
A. Construction limited to single‑family residences only
B. Construction of commercial structures without any height or cost
limitations
C. Construction, repair, and alteration of commercial buildings and
multi‑family structures exceeding four units or greater than three stories
in height ✔
D. Only electrical and mechanical installations in commercial
buildings
, Page 3 of 101
RATIONALE: A BC‑B license authorizes the holder to contract for the
construction, erection, alteration, repair, or demolition of any building or
structure for use and occupancy by the general public, including
residential construction with more than four units or greater than three
stories in height.
Question 3
What is the maximum contract amount per project for a BC‑b (Small
Commercial) license in Tennessee?
A. $500,000
B. $750,000
C. $1,500,000 ✔
D. $3,000,000
RATIONALE: The Tennessee BC‑b Small Commercial license permits
work on commercial projects with a contract amount below $1,500,000.
For larger, unlimited commercial work, the full BC‑B license is required.
Question 4
Which of the following is a correct statement regarding the BC‑A
(Residential) license?
, Page 4 of 101
A. It allows construction of any commercial building
B. It is limited to construction of one‑ to four‑family unit residences not
exceeding three stories in height ✔
C. It requires passing the same exam as BC‑B
D. It has no monetary limit
RATIONALE: Residential building contractors (BC‑A) are limited to the
construction, remodeling, repair, or improvement of one‑, two‑, three‑, or
four‑family unit residences not exceeding three stories in height and
accessory use structures.
Question 5
A contractor with a full BC (combined) license may bid on projects
outside the building classification, such as HC (Heavy Construction).
What is the primary restriction on this authority?
A. They must obtain a separate HC license
B. They cannot bid on projects over $1,000,000
C. They may bid any project within their assigned monetary limit,
except that they must subcontract portions of electrical, plumbing,
HVAC, and masonry work over $25,000 ✔
