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Tennessee Commercial - Industrial Contractor Exam (BC-
B,C)EXAM QUESTIONS AND CORRECT VERIFIED SOLUTIONS
LATEST UPDATE THIS YEAR – JUST RELEASED
Tennessee Commercial / Industrial Contractor Exam (BC-B,C): 250 High-Yield Questions with
Rationales
10-Line Exam Coverage in Points Form
1. Licensing Threshold & Requirements – License required for projects over $25,000 ;
monetary limit based on financial statements; BC-B (Commercial) and BC-C (Industrial)
classifications; qualifying agent (QA) must pass exams and be designated on application
2. Financial Qualifications & Monetary Limits – Reviewed financial statement required for
limits ≤$3,000,000; audited financial statement required for limits >$3,000,000 ;
unlimited license requires $300,000 in net worth and working capital; 10% bid tolerance
allowed (except BC-A/r)
3. Financial Responsibility & Insurance – General liability insurance minimums: $100,000
(up to $500,000 limit), $500,000 ($501,000–$1,500,000 limit), $1,000,000 ($1,500,001+
limit) ; workers' compensation required with ≥1 employee ; surety bond option
beginning July 1, 2026
4. Exam Format & Requirements – 100 questions, 5-hour time limit, 73% passing score,
open-book ; fee: $57; Business and Law exam + Trade exam required ; exams
administered by PSI (transitioning to Prov July 1, 2026)
5. Code Adoption – March 12, 2026 – June 14, 2026: either 2012 or 2021 International
Codes may be used; June 15, 2026 onward: only 2021 International Codes apply ; open-
book exam permits tabbed and highlighted books
6. Subcontractor Licensing – Electrical, mechanical, plumbing, HVAC, roofing
subcontractors must be licensed when their portion is ≥$25,000 ; masonry
subcontractors must be licensed when portion is ≥$100,000 ; prime contractor
responsible for subcontractor compliance
7. Civil Penalties & Enforcement – Up to $5,000 civil penalty per violation for unlicensed
contracting (T.C.A. § 62-6-119) ; injunctive relief and restitution may be ordered; license
suspension for false statements on application
8. Legal Contract Requirements – Written contract required for projects over $25,000
signed by both parties ; must include contractor name/license number, work description,
total price, signatures of both parties ; oral contracts are enforceable if not subject to
Statute of Frauds
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9. Mechanic's Liens – Must be filed within 60 days after last furnishing labor or materials ;
Notice of Nonpayment must be served within 30 days ; 90-day deadline for residential
property liens
10. Public Works Bonding – Performance bond required = 100% of contract price for public
works projects over $100,000 ; payment bonds protect subcontractors and suppliers ;
bid bonds guarantee contractor will sign contract if awarded
COMPREHENSIVE PRACTICE QUESTIONS
Section 1: Licensing Laws & Thresholds (TCA Title 62, Chapter 6)
1. A commercial contractor in Tennessee is preparing a bid for a $30,000 tenant build-out.
Under Tennessee law, which of the following is MANDATORY for the contract to be
enforceable against the owner?
A) A notarized signature of the owner
B) A detailed payment schedule based on percentage of completion
C) A written contract signed by both parties
D) A performance bond
Answer: C
Rationale: Tennessee law requires a written contract signed by both parties for any commercial
or industrial project exceeding $25,000 . A notarized signature is not required for enforceability,
and while a payment schedule is advisable, it is not mandatory for all contracts .
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2. Under the Tennessee Contractors Licensing Act of 1994, what is the maximum civil penalty
per violation for contracting without a license when a license is required?
A) $500
B) $1,000
C) $5,000
D) $10,000
Answer: C
Rationale: T.C.A. § 62-6-119 permits the board to impose a civil penalty of up to $5,000 per
violation for unlicensed contracting. In addition, violators may be subject to injunctive relief and
restitution .
3. A contractor holds a BC-B classification (Commercial Building Contractor). Which project is
this contractor PERMITTED to perform without an additional classification?
A) Installation of a commercial fire sprinkler system
B) Construction of a two-story retail strip mall with load-bearing masonry
C) Replacement of a rooftop HVAC unit on a 50,000 sq. ft. warehouse
D) Installation of a new sanitary sewer line serving three commercial buildings
Answer: B
Rationale: The BC-B classification allows general commercial building construction including
structural framing, masonry, and finishes. Fire sprinklers (A) require a C-14 license. HVAC
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replacement (C) typically requires a C-21 (HVAC). Sewer lines (D) require a C-17 (Utility
Contractor) unless incidental to the primary building contract .
4. What is the monetary threshold in Tennessee above which a contractor must be licensed to
perform commercial construction work?
A) $10,000
B) $15,000
C) $25,000
D) $50,000
Answer: C
Rationale: Tennessee law requires contractors to be licensed when the total project cost is
$25,000 or more, including materials and labor . Projects under $25,000 are exempt from
licensure .
5. Which Tennessee Board classification is required for a contractor who installs fire sprinkler
systems?
A) BC – Building Contractor
B) CE – Commercial Electrical Contractor
C) CMC – Commercial Mechanical Contractor
D) H – Home Improvement Contractor
Answer: C
Tennessee Commercial - Industrial Contractor Exam (BC-
B,C)EXAM QUESTIONS AND CORRECT VERIFIED SOLUTIONS
LATEST UPDATE THIS YEAR – JUST RELEASED
Tennessee Commercial / Industrial Contractor Exam (BC-B,C): 250 High-Yield Questions with
Rationales
10-Line Exam Coverage in Points Form
1. Licensing Threshold & Requirements – License required for projects over $25,000 ;
monetary limit based on financial statements; BC-B (Commercial) and BC-C (Industrial)
classifications; qualifying agent (QA) must pass exams and be designated on application
2. Financial Qualifications & Monetary Limits – Reviewed financial statement required for
limits ≤$3,000,000; audited financial statement required for limits >$3,000,000 ;
unlimited license requires $300,000 in net worth and working capital; 10% bid tolerance
allowed (except BC-A/r)
3. Financial Responsibility & Insurance – General liability insurance minimums: $100,000
(up to $500,000 limit), $500,000 ($501,000–$1,500,000 limit), $1,000,000 ($1,500,001+
limit) ; workers' compensation required with ≥1 employee ; surety bond option
beginning July 1, 2026
4. Exam Format & Requirements – 100 questions, 5-hour time limit, 73% passing score,
open-book ; fee: $57; Business and Law exam + Trade exam required ; exams
administered by PSI (transitioning to Prov July 1, 2026)
5. Code Adoption – March 12, 2026 – June 14, 2026: either 2012 or 2021 International
Codes may be used; June 15, 2026 onward: only 2021 International Codes apply ; open-
book exam permits tabbed and highlighted books
6. Subcontractor Licensing – Electrical, mechanical, plumbing, HVAC, roofing
subcontractors must be licensed when their portion is ≥$25,000 ; masonry
subcontractors must be licensed when portion is ≥$100,000 ; prime contractor
responsible for subcontractor compliance
7. Civil Penalties & Enforcement – Up to $5,000 civil penalty per violation for unlicensed
contracting (T.C.A. § 62-6-119) ; injunctive relief and restitution may be ordered; license
suspension for false statements on application
8. Legal Contract Requirements – Written contract required for projects over $25,000
signed by both parties ; must include contractor name/license number, work description,
total price, signatures of both parties ; oral contracts are enforceable if not subject to
Statute of Frauds
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9. Mechanic's Liens – Must be filed within 60 days after last furnishing labor or materials ;
Notice of Nonpayment must be served within 30 days ; 90-day deadline for residential
property liens
10. Public Works Bonding – Performance bond required = 100% of contract price for public
works projects over $100,000 ; payment bonds protect subcontractors and suppliers ;
bid bonds guarantee contractor will sign contract if awarded
COMPREHENSIVE PRACTICE QUESTIONS
Section 1: Licensing Laws & Thresholds (TCA Title 62, Chapter 6)
1. A commercial contractor in Tennessee is preparing a bid for a $30,000 tenant build-out.
Under Tennessee law, which of the following is MANDATORY for the contract to be
enforceable against the owner?
A) A notarized signature of the owner
B) A detailed payment schedule based on percentage of completion
C) A written contract signed by both parties
D) A performance bond
Answer: C
Rationale: Tennessee law requires a written contract signed by both parties for any commercial
or industrial project exceeding $25,000 . A notarized signature is not required for enforceability,
and while a payment schedule is advisable, it is not mandatory for all contracts .
, Page 3 of 111
2. Under the Tennessee Contractors Licensing Act of 1994, what is the maximum civil penalty
per violation for contracting without a license when a license is required?
A) $500
B) $1,000
C) $5,000
D) $10,000
Answer: C
Rationale: T.C.A. § 62-6-119 permits the board to impose a civil penalty of up to $5,000 per
violation for unlicensed contracting. In addition, violators may be subject to injunctive relief and
restitution .
3. A contractor holds a BC-B classification (Commercial Building Contractor). Which project is
this contractor PERMITTED to perform without an additional classification?
A) Installation of a commercial fire sprinkler system
B) Construction of a two-story retail strip mall with load-bearing masonry
C) Replacement of a rooftop HVAC unit on a 50,000 sq. ft. warehouse
D) Installation of a new sanitary sewer line serving three commercial buildings
Answer: B
Rationale: The BC-B classification allows general commercial building construction including
structural framing, masonry, and finishes. Fire sprinklers (A) require a C-14 license. HVAC
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replacement (C) typically requires a C-21 (HVAC). Sewer lines (D) require a C-17 (Utility
Contractor) unless incidental to the primary building contract .
4. What is the monetary threshold in Tennessee above which a contractor must be licensed to
perform commercial construction work?
A) $10,000
B) $15,000
C) $25,000
D) $50,000
Answer: C
Rationale: Tennessee law requires contractors to be licensed when the total project cost is
$25,000 or more, including materials and labor . Projects under $25,000 are exempt from
licensure .
5. Which Tennessee Board classification is required for a contractor who installs fire sprinkler
systems?
A) BC – Building Contractor
B) CE – Commercial Electrical Contractor
C) CMC – Commercial Mechanical Contractor
D) H – Home Improvement Contractor
Answer: C
