Tennessee Commercial / Industrial Contractor Exam (BC-B,C) Exam Practice Questions and Correct Answers
1: Under Tennessee law, what is the minimum license classification required to construct a commercial building valued at $75,000 or
more?
A. Home Improvement License
B. BC-A (Residential) License
C. BC-B (Commercial/Industrial) License
D. No license required for projects under $100,000
CORRECT ANSWER: C. BC-B (Commercial/Industrial) License
Rationale: Tennessee Code Annotated §62-6-103 requires a BC-B (Building Construction - Commercial/Industrial) license for
commercial/industrial projects with a total value of $75,000 or more. Home Improvement licenses cover residential repairs under
$25,000; BC-A covers residential new construction.
2: Which Tennessee agency administers contractor licensing and enforcement for commercial construction?
A. Tennessee Department of Labor and Workforce Development
B. Tennessee Board for Licensing Contractors (TBLC)
C. Tennessee Department of Commerce and Insurance
D. Tennessee Occupational Safety and Health Administration (TOSHA)
CORRECT ANSWER: B. Tennessee Board for Licensing Contractors (TBLC)
Rationale: The Tennessee Board for Licensing Contractors (TBLC) administers licensing, examinations, complaints, and disciplinary
actions for all contractor classifications under Tenn. Code Ann. Title 62, Chapter 6.
,3: What is the minimum financial requirement for a BC-B license applicant in Tennessee?
A. $10,000 working capital
B. $20,000 working capital or $100,000 net worth
C. $50,000 working capital
D. No financial requirement
CORRECT ANSWER: B. $20,000 working capital or $100,000 net worth
Rationale: Tennessee Administrative Rule 0680-01-.07 requires BC-B applicants to demonstrate either $20,000 working capital OR
$100,000 net worth, verified by a CPA-prepared financial statement. This ensures contractors have adequate financial resources to
complete projects.
4: Which document must a Tennessee contractor provide to a client before starting work on a commercial project valued over
$25,000?
A. Verbal estimate only
B. Written contract with scope, price, and timeline
C. Business license copy only
D. Insurance certificate only
CORRECT ANSWER: B. Written contract with scope, price, and timeline
,Rationale: Tenn. Code Ann. §62-6-123 requires contractors to provide a written contract for projects over $25,000, including scope of
work, total price, payment schedule, start/completion dates, and contractor license number. This protects both parties and is
enforceable.
5: Under OSHA 29 CFR 1926, what is the minimum height at which fall protection is required for construction work?
A. 4 feet
B. 6 feet
C. 10 feet
D. 15 feet
CORRECT ANSWER: B. 6 feet
Rationale: OSHA 1926.501(b)(1) requires fall protection for employees working at heights of 6 feet or more above a lower level in
construction. This includes guardrails, safety nets, or personal fall arrest systems.
6: What is the maximum penalty for a first-time unlicensed contracting violation in Tennessee?
A. $500 fine
B. $1,000 fine and/or 6 months imprisonment
C. $5,000 fine per violation
D. License suspension only
CORRECT ANSWER: B. $1,000 fine and/or 6 months imprisonment
, Rationale: Tenn. Code Ann. §62-6-115 classifies unlicensed contracting as a Class B misdemeanor, punishable by up to $1,000 fine
and/or 6 months imprisonment for a first offense. Subsequent offenses carry higher penalties.
7: Which type of insurance is typically required for Tennessee commercial contractors to protect against third-party bodily injury or
property damage?
A. Workers' compensation only
B. General liability insurance
C. Builder's risk insurance
D. Professional liability insurance
CORRECT ANSWER: B. General liability insurance
Rationale: General liability insurance covers third-party claims for bodily injury, property damage, and personal/advertising injury.
Most commercial contracts and Tennessee licensing rules require minimum coverage (often $500,000-$1,000,000 per occurrence).
8: Under the International Building Code (IBC), what is the minimum fire-resistance rating for structural frames in a Type I-A
commercial building?
A. 1 hour
B. 2 hours
C. 3 hours
D. 4 hours
CORRECT ANSWER: C. 3 hours
1: Under Tennessee law, what is the minimum license classification required to construct a commercial building valued at $75,000 or
more?
A. Home Improvement License
B. BC-A (Residential) License
C. BC-B (Commercial/Industrial) License
D. No license required for projects under $100,000
CORRECT ANSWER: C. BC-B (Commercial/Industrial) License
Rationale: Tennessee Code Annotated §62-6-103 requires a BC-B (Building Construction - Commercial/Industrial) license for
commercial/industrial projects with a total value of $75,000 or more. Home Improvement licenses cover residential repairs under
$25,000; BC-A covers residential new construction.
2: Which Tennessee agency administers contractor licensing and enforcement for commercial construction?
A. Tennessee Department of Labor and Workforce Development
B. Tennessee Board for Licensing Contractors (TBLC)
C. Tennessee Department of Commerce and Insurance
D. Tennessee Occupational Safety and Health Administration (TOSHA)
CORRECT ANSWER: B. Tennessee Board for Licensing Contractors (TBLC)
Rationale: The Tennessee Board for Licensing Contractors (TBLC) administers licensing, examinations, complaints, and disciplinary
actions for all contractor classifications under Tenn. Code Ann. Title 62, Chapter 6.
,3: What is the minimum financial requirement for a BC-B license applicant in Tennessee?
A. $10,000 working capital
B. $20,000 working capital or $100,000 net worth
C. $50,000 working capital
D. No financial requirement
CORRECT ANSWER: B. $20,000 working capital or $100,000 net worth
Rationale: Tennessee Administrative Rule 0680-01-.07 requires BC-B applicants to demonstrate either $20,000 working capital OR
$100,000 net worth, verified by a CPA-prepared financial statement. This ensures contractors have adequate financial resources to
complete projects.
4: Which document must a Tennessee contractor provide to a client before starting work on a commercial project valued over
$25,000?
A. Verbal estimate only
B. Written contract with scope, price, and timeline
C. Business license copy only
D. Insurance certificate only
CORRECT ANSWER: B. Written contract with scope, price, and timeline
,Rationale: Tenn. Code Ann. §62-6-123 requires contractors to provide a written contract for projects over $25,000, including scope of
work, total price, payment schedule, start/completion dates, and contractor license number. This protects both parties and is
enforceable.
5: Under OSHA 29 CFR 1926, what is the minimum height at which fall protection is required for construction work?
A. 4 feet
B. 6 feet
C. 10 feet
D. 15 feet
CORRECT ANSWER: B. 6 feet
Rationale: OSHA 1926.501(b)(1) requires fall protection for employees working at heights of 6 feet or more above a lower level in
construction. This includes guardrails, safety nets, or personal fall arrest systems.
6: What is the maximum penalty for a first-time unlicensed contracting violation in Tennessee?
A. $500 fine
B. $1,000 fine and/or 6 months imprisonment
C. $5,000 fine per violation
D. License suspension only
CORRECT ANSWER: B. $1,000 fine and/or 6 months imprisonment
, Rationale: Tenn. Code Ann. §62-6-115 classifies unlicensed contracting as a Class B misdemeanor, punishable by up to $1,000 fine
and/or 6 months imprisonment for a first offense. Subsequent offenses carry higher penalties.
7: Which type of insurance is typically required for Tennessee commercial contractors to protect against third-party bodily injury or
property damage?
A. Workers' compensation only
B. General liability insurance
C. Builder's risk insurance
D. Professional liability insurance
CORRECT ANSWER: B. General liability insurance
Rationale: General liability insurance covers third-party claims for bodily injury, property damage, and personal/advertising injury.
Most commercial contracts and Tennessee licensing rules require minimum coverage (often $500,000-$1,000,000 per occurrence).
8: Under the International Building Code (IBC), what is the minimum fire-resistance rating for structural frames in a Type I-A
commercial building?
A. 1 hour
B. 2 hours
C. 3 hours
D. 4 hours
CORRECT ANSWER: C. 3 hours
