Page 1 of 139
TN BC-B Commercial Contractor Exam QUESTIONS
AND VERIFIED ANSWERS LATEST UPDATE THIS
YEAR
TN BC-B Commercial Contractor Exam)
1. Licensing Law & Board Authority – Tennessee Code Annotated Title 62, Chapter 6 (Contractor
Licensing Act) and Tennessee Board for Licensing Contractors powers
2. License Classifications & Monetary Limits – BC-B (Commercial) full scope, BC-b(sm) Small
Commercial ($750,000 limit), monetary limit formula (10× net worth/working
capital/experience)
3. Qualifying Agent & Experience – Minimum 3 years verifiable construction experience,
designated qualifying agent for business entities
4. Application & Examination Process – PSI vendor, open-book format, 70% passing score,
Business and Law exam required for all new applicants
5. Financial & Insurance Requirements – General liability insurance ($250k to $1M minimums),
workers' compensation for employees, reviewed/audited financial statements
6. Contract Types & Delivery Methods – Lump sum, unit price, cost-plus, GMP, design-bid-build,
design-build, CMAR
7. Construction Contracts & Documents – Subcontract agreements, change orders, specifications
vs drawings, addenda, RFIs, submittals, shop drawings
8. Building Codes & Permits – IBC (commercial buildings), IRC (1-4 family dwellings ≤3 stories),
local building permits, certificate of occupancy
9. Safety Regulations (TOSHA/OSHA) – Fall protection (6 ft), excavation shoring/sloping (≥5 ft),
competent person requirements, PPE
10. Project Management & Scheduling – Critical Path Method (CPM), Gantt charts, work
breakdown structure, resource loading, float, earned value management
11. Financial Management & Surety Bonds – Performance bonds, payment bonds, bid bonds,
retainage (10%), lien waivers, mechanics liens
12. Tennessee Specific Requirements – Mandatory subcontracting for electrical, plumbing, HVAC,
masonry, geothermal over $25,000
13. Subcategories & Trade Exams – 34 building subcategories (BC-1 to BC-34); masonry LMC exam
for projects $100k+
14. Public & Municipal Construction – Public bidding requirements, Davis-Bacon prevailing wages,
MU (Municipal and Utility) classification covered by BC-B license
15. Ethics & Legal Liabilities – Licensing Board disciplinary authority, license number display on
ads/signs/vehicles, bid shopping/peddling prohibition
1. A general contractor in Tennessee is bidding a project that includes $50,000 worth of electrical work,
$40,000 of plumbing, and $30,000 of HVAC. The contractor holds a BC-B license but no trade licenses.
According to T.C.A. § 62-6-111(d), what must the contractor do regarding these portions of work?
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A) Perform all work since BC-B covers all trades
B) Subcontract all electrical, plumbing, and HVAC portions since each exceeds $25,000
C) Subcontract only the electrical portion because it exceeds $25,000
D) Obtain a special waiver from the Board to perform mechanical work
**Answer: B** – Tennessee law requires BC-B license holders to subcontract electrical, plumbing, HVAC,
masonry, and geothermal work exceeding $25,000 to properly licensed contractors .
2. What is the maximum total contract amount per project for a BC-b(sm) Small Commercial license
holder in Tennessee before they are required to upgrade to a full BC-B license?
A) $500,000
B) $750,000
C) $1,000,000
D) $1,500,000
Answer: D – The BC-b Small Commercial license permits work on commercial projects with a contract
amount under $1,500,000; the full BC-B license is required for larger contracts .
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3. A contractor applying for a Tennessee commercial license must provide verifiable construction
experience. What is the minimum number of years of experience required by the Board for a BC-B
license?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C – Tennessee requires a minimum of three years of verifiable construction experience for a
commercial contractor license .
4. Under Tennessee law, which entity has the statutory authority to issue, suspend, or revoke contractor
licenses for violations of licensing requirements?
A) Tennessee Department of Commerce and Insurance
B) Tennessee Board for Licensing Contractors
C) Tennessee Department of Labor and Workforce Development
D) Tennessee Secretary of State
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Answer: B – The Tennessee Board for Licensing Contractors is the statutory agency responsible for
licensing, disciplining, and regulating contractors in the state .
5. A residential building contractor plans to construct a 5-story apartment building with 12 units. Which
license classification is required for this project under Tennessee rules?
A) BC-A Residential
B) BC-B Commercial
C) BC-A/r Restricted Residential
D) BC-b(sm) Small Commercial
Answer: B – Commercial classification (BC-B) is required for residential construction with more than four
units OR greater than three stories in height .
6. The Tennessee Board for Licensing Contractors sets a contractor's monetary limit based on financial
statements. What is the formula used to calculate the maximum allowed contract amount?
A) 5 times the net worth
B) 8 times the working capital
C) 10 times the lesser of net worth, working capital, or qualifying experience
TN BC-B Commercial Contractor Exam QUESTIONS
AND VERIFIED ANSWERS LATEST UPDATE THIS
YEAR
TN BC-B Commercial Contractor Exam)
1. Licensing Law & Board Authority – Tennessee Code Annotated Title 62, Chapter 6 (Contractor
Licensing Act) and Tennessee Board for Licensing Contractors powers
2. License Classifications & Monetary Limits – BC-B (Commercial) full scope, BC-b(sm) Small
Commercial ($750,000 limit), monetary limit formula (10× net worth/working
capital/experience)
3. Qualifying Agent & Experience – Minimum 3 years verifiable construction experience,
designated qualifying agent for business entities
4. Application & Examination Process – PSI vendor, open-book format, 70% passing score,
Business and Law exam required for all new applicants
5. Financial & Insurance Requirements – General liability insurance ($250k to $1M minimums),
workers' compensation for employees, reviewed/audited financial statements
6. Contract Types & Delivery Methods – Lump sum, unit price, cost-plus, GMP, design-bid-build,
design-build, CMAR
7. Construction Contracts & Documents – Subcontract agreements, change orders, specifications
vs drawings, addenda, RFIs, submittals, shop drawings
8. Building Codes & Permits – IBC (commercial buildings), IRC (1-4 family dwellings ≤3 stories),
local building permits, certificate of occupancy
9. Safety Regulations (TOSHA/OSHA) – Fall protection (6 ft), excavation shoring/sloping (≥5 ft),
competent person requirements, PPE
10. Project Management & Scheduling – Critical Path Method (CPM), Gantt charts, work
breakdown structure, resource loading, float, earned value management
11. Financial Management & Surety Bonds – Performance bonds, payment bonds, bid bonds,
retainage (10%), lien waivers, mechanics liens
12. Tennessee Specific Requirements – Mandatory subcontracting for electrical, plumbing, HVAC,
masonry, geothermal over $25,000
13. Subcategories & Trade Exams – 34 building subcategories (BC-1 to BC-34); masonry LMC exam
for projects $100k+
14. Public & Municipal Construction – Public bidding requirements, Davis-Bacon prevailing wages,
MU (Municipal and Utility) classification covered by BC-B license
15. Ethics & Legal Liabilities – Licensing Board disciplinary authority, license number display on
ads/signs/vehicles, bid shopping/peddling prohibition
1. A general contractor in Tennessee is bidding a project that includes $50,000 worth of electrical work,
$40,000 of plumbing, and $30,000 of HVAC. The contractor holds a BC-B license but no trade licenses.
According to T.C.A. § 62-6-111(d), what must the contractor do regarding these portions of work?
, Page 2 of 139
A) Perform all work since BC-B covers all trades
B) Subcontract all electrical, plumbing, and HVAC portions since each exceeds $25,000
C) Subcontract only the electrical portion because it exceeds $25,000
D) Obtain a special waiver from the Board to perform mechanical work
**Answer: B** – Tennessee law requires BC-B license holders to subcontract electrical, plumbing, HVAC,
masonry, and geothermal work exceeding $25,000 to properly licensed contractors .
2. What is the maximum total contract amount per project for a BC-b(sm) Small Commercial license
holder in Tennessee before they are required to upgrade to a full BC-B license?
A) $500,000
B) $750,000
C) $1,000,000
D) $1,500,000
Answer: D – The BC-b Small Commercial license permits work on commercial projects with a contract
amount under $1,500,000; the full BC-B license is required for larger contracts .
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3. A contractor applying for a Tennessee commercial license must provide verifiable construction
experience. What is the minimum number of years of experience required by the Board for a BC-B
license?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C – Tennessee requires a minimum of three years of verifiable construction experience for a
commercial contractor license .
4. Under Tennessee law, which entity has the statutory authority to issue, suspend, or revoke contractor
licenses for violations of licensing requirements?
A) Tennessee Department of Commerce and Insurance
B) Tennessee Board for Licensing Contractors
C) Tennessee Department of Labor and Workforce Development
D) Tennessee Secretary of State
, Page 4 of 139
Answer: B – The Tennessee Board for Licensing Contractors is the statutory agency responsible for
licensing, disciplining, and regulating contractors in the state .
5. A residential building contractor plans to construct a 5-story apartment building with 12 units. Which
license classification is required for this project under Tennessee rules?
A) BC-A Residential
B) BC-B Commercial
C) BC-A/r Restricted Residential
D) BC-b(sm) Small Commercial
Answer: B – Commercial classification (BC-B) is required for residential construction with more than four
units OR greater than three stories in height .
6. The Tennessee Board for Licensing Contractors sets a contractor's monetary limit based on financial
statements. What is the formula used to calculate the maximum allowed contract amount?
A) 5 times the net worth
B) 8 times the working capital
C) 10 times the lesser of net worth, working capital, or qualifying experience
