Construction / Business and Law Exam / Tennessee
- Tennessee
- Business & Law Exam
- All Contractor Classes
- Updated Oct 2026
How to Pass the Business & Law Exam in Tennessee
Who needs Tennessee’s contractor Business & Law exam, what it covers, how to book it with Prov, and what else you need for your license.
Last updated October 27, 2026 from Tennessee Board for Licensing Contractors requirements
Application fee
$250
Initial contractor application; plus $53 per Prov exam
Exam time
2 hrs
50 questions, open book
Time to get license
Varies
Depends on your classification
Continuing ed
Residential
Required for residential contractors; hours not stated
Overview
Who needs to take the Tennessee business and law exam?
Almost certainly. Tennessee requires the Business & Law exam for nearly every contractor license, and you take it in addition to your trade exam. Some work under $25,000 can be done without a contractor license in certain areas.
License required when
- You’re applying for any Tennessee contractor license from the Board for Licensing Contractors
- You’re adding specialty categories: up to 5 of the 34 building categories can be earned by passing Business & Law alone
- You’re applying for a BC, BC-A, BC-B, electrical, mechanical, plumbing, HVAC/R or masonry license (Business & Law plus a trade exam)
Common exceptions
- Alarm Systems Contractors, licensed by the Tennessee Alarm Systems Contractors Board, take only the trade exam
- Some contracting under $25,000 can be done without a contractor license in certain areas
Penalties for unlicensed work
Contracting without the license your project requires can lead to disciplinary action and penalties from the state. Pass your exams and get licensed before you bid.
Your Tennessee business and law exam checklist
The Tennessee application, one page
- Passing scores on Business & Law and your trade exam
- General liability insurance for your monetary limit
- Workers’ comp coverage
- CPA or PA prepared financial statements
- Letter of reference showing your experience
- Signed, notarized application package
Types
Which Tennessee licenses require the business and law exam?
Business & Law is required for nearly all Tennessee contractor classifications. The full list is in the Board’s classification outline.
BC
Broadest
Residential / Commercial / Industrial
Any building or structure for public use, homes and industrial plants. Electrical, HVAC and plumbing over $25,000 are excluded.
Exam
B&L + trade
Limit
Not stated
BC-A
Most common
Residential
Homes up to 4 units and 3 stories, plus accessory structures.
Exam
B&L + trade
Limit
Not stated
BC-A,b
Homes + small commercial
Residential / Small Commercial
Residential work plus commercial projects with a total cost of up to $1,500,000.
Exam
B&L + trade
Limit
$1.5M commercial
BC-B
Larger projects
Commercial
Buildings for public use, plus residential over 4 units or over 3 stories.
Exam
B&L + trade
Limit
Not stated
CE
Trade
Electrical Contractor
Residential, commercial and industrial wiring, low voltage, alarms, controls and lighting.
Exam
B&L + trade
Limit
Not stated
CMC
Trade
Mechanical Contractor
Plumbing, HVAC, refrigeration, sprinklers, boilers, gas piping and related work. CMC-A (plumbing) and CMC-C (HVAC/R) are narrower classes.
Exam
B&L + trade
Limit
Not stated
Specialty
B&L only
Specialty categories
Any combination of up to 5 of the 34 building categories. Some carry financial limits.
Exam
B&L alone
Limit
Varies
Alarm
Not required
Alarm Systems Contractor
Fire alarms, burglar alarms and CCTV. Licensed by the Alarm Systems Contractors Board.
Exam
Trade exam only
Limit
Not stated
Requirements
What you need before you sit for the Tennessee business and law exam
You take Business & Law and your trade exam with the same vendor. Both are open book.
| Requirement | Business & Law | Trade exam |
|---|---|---|
| Questions | 50 | Varies by classification |
| Passing score | 73% | Not stated |
| Time limit | 2 hours | Not stated |
| Format | Open book | Open book |
| Exam vendor | Prov | Prov |
| How to schedule | provexam.com or 866-720-7768 | provexam.com or 866-720-7768 |
Steps
How to register for and pass the Tennessee business and law exam, step by step
- Pick your classificationBefore you start
Check the Board’s classification outline to see which trade exam you need alongside Business & Law. - Schedule with ProvBefore exam day
Book at provexam.com or call 866-720-7768. Test centers are in larger cities around the state. - Pass Business & Law and your trade examExam day
Business & Law is 50 questions in 2 hours, open book, and you need 73% to pass. - Get insurance and financialsBefore you apply
General liability scaled to your monetary limit, workers’ comp, and financial statements prepared by a CPA or PA. - Gather your documentsBefore you apply
A letter of reference showing your work and trade experience, plus a completed, signed and notarized application package. - Apply in COREOnline
Apply through the Board’s online system. Corporations and LLCs should check business filings with the Tennessee Secretary of State.
Exam
What’s on the Tennessee business and law exam?
Tennessee contractors pass two exams: Business & Law and a trade exam. Exams are now given by Prov instead of PSI.
Format
Open book
Questions
50
Passing score
73%
Exam vendor
Prov
Scoring & content
- 50 questions, 2 hours, 73% to pass
- Topics: business organization, licensing, estimating and bidding, contracts, project management
- Also: risk management, OSHA safety, financial management, labor law, tax law and lien law
- Approved references can be tabbed and highlighted
Retake policy
- Each exam costs $53, whether it’s your first try or a retake
- Check Prov’s test information before you book
- Old PSI-era references can still be used through January 1, 2027
Exam references · Open book
The Tennessee contractor Business and Law exam is open book, and the approved reference can be tabbed, highlighted and used during the test.
| Book | Edition | Use |
|---|---|---|
| NASCLA Contractor’s Guide to Business, Law and Project Management (Tennessee edition) | Not stated | Allowed in exam |
Tennessee exams moved from PSI to Prov; candidates who already own the previous PSI reference books may keep using them during the exam through January 1, 2027.
Prep
Best Tennessee business and law exam prep, compared
We haven’t compared prep courses for this exam yet.
Costs
How much does the Tennessee business and law exam cost?
| Item | Type | Estimate |
|---|---|---|
| Business & Law exam | Fixed | $53 |
| Trade exam | Fixed | $53 |
| License application | Fixed | $250 |
| CPA or PA financial statements | Variable | Varies |
| General liability and workers’ comp | Variable | Varies |
| State fees and exams | Excludes financial statements and insurance; $303 if no trade exam is needed | $356 |
Fees from the Tennessee Board for Licensing Contractors fee page and the Prov candidate bulletin, checked October 2026. Each Prov exam costs $53, retakes included.
Reciprocity
Does Tennessee accept a business and law exam passed in another state?
Tennessee has reciprocity agreements for a variety of license classifications and states.
Several states — varies by classification
Agreements depend on your license class and home state. Contact the Board to see what applies to you.
Local
Local Tennessee licensing rules that sit alongside the business and law exam
Your exams and license come from the state. Cities and counties handle permits, and some work under $25,000 is regulated locally.
State handles
- Contractor licenses and classifications
- Business & Law and trade exams, through Prov
- Insurance and financial requirements
City & county handle
- Building permits and inspections
- Some contracting under $25,000
- Limited licensed electrician and plumber work in certain municipalities
Governance
Who regulates contractors in Tennessee
Licensing authority
Tennessee Board for Licensing Contractors
615-741-2241 (Department of Commerce and Insurance)
Oversight responsibilities
- Issues and renews contractor licenses
- Sets license classifications
- Sets insurance and financial statement requirements
- Requires CE for residential contractors
Maintenance
Keeping your Tennessee license active after you pass the business and law exam
Residential contractors must complete continuing education. Renewal costs $200, and late renewals within 12 months of expiration add $20 per month; after that you must reapply.
Renewal cycle
Not stated
CE hours
Residential only
Renewal fee
$200
Late penalty
$20/month, up to 12 months
FAQ
Tennessee business and law exam FAQs
Is the Tennessee Business and Law exam open book?
Yes. Approved references can be tabbed, highlighted and used during the exam.
How many questions are on the Tennessee Business and Law exam?
50 questions with 2 hours to finish. You need 73% to pass.
Who gives the Tennessee contractor exams now?
Prov, which replaced PSI. Schedule at provexam.com or call 866-720-7768.
Can I still use my old PSI reference books?
Yes, through January 1, 2027.
Can I get a license with only the Business and Law exam?
Yes, for specialty work. Any combination of up to 5 of the 34 building categories can be earned by passing Business & Law alone.
Do alarm contractors take Business and Law?
No. Alarm Systems Contractors are licensed by a separate board and take only the trade exam.
Is continuing education required?
Only for residential contractors.
Sources
Official sources for the Tennessee business and law exam
- Tennessee Board for Licensing Contractors
- Board for Licensing Contractors, Classification Outline (PDF)
- Prov, Test information
- Tennessee Board for Licensing Contractors, Fees
- Tennessee Board for Licensing Contractors, How to get a contractor license
- Tennessee Board for Licensing Contractors, Renewal and reinstatement
- Prov, Tennessee Contractor Candidate Information Bulletin (PDF)
Last updated October 27, 2026. Spot something out of date? Tell us.
Exam Insiders is an independent guide and is not affiliated with the Tennessee Board for Licensing Contractors.