Every new Tennessee contractor applicant except BC-A/r takes the Business and Law exam: 50 questions, 150 minutes, 73 percent, open book, given by Prov.
Every new applicant for a Tennessee contractor license passes the Tennessee Business and Law exam, with one exception: the restricted residential BC-A/r license, which replaces the exams with an approved course. The exam is open book, has 50 questions, gives you 2.5 hours, and needs a score of 73 percent, and Prov has administered it for the Tennessee Board for Licensing Contractors since July 1, 2026.
At a glance
- Required for every new contractor applicant except BC-A/r, per the Board's trade exam waiver form (Rev. 06/2026) and its classification outline.
- 50 questions, 150 minutes, 73 percent to pass, open book; the exam is labeled "new licensees only" in Prov's bulletin. Each attempt costs $53, paid to Prov.
- The Board says exams are typically valid for two years. Reciprocity waives only the trade exam, never this one.
- Checked against the Tennessee Board for Licensing Contractors and Prov's candidate information bulletin on October 16, 2026.
Who has to take the Business and Law exam
Tennessee requires a contractor license before you bid or contract on a project of $25,000 or more as a prime contractor, and the Tennessee contractor license process starts with testing. The Board's contractor page says contractor applicants take the Tennessee Business and Law exam, and that a trade exam is required only for certain classifications. The Board's trade exam waiver form, revised 06/2026, puts it more plainly: every contractor license except the restricted residential (BC-A/r) classification requires the Tennessee Business and Law exam.
That includes licenses that need no trade exam at all. The classification outline says up to five building categories need no trade exam, but "the Business and Law exam and experience are still required." Prov's bulletin lists a separate registration choice for this case, labeled Business & Law Only (No Trade Exam Required), which is what a candidate for a no trade exam classification registers for.
The exam belongs to the person the license names as its qualifying agent. The Board's exam page says the qualifying agent is the person designated to take the exams for the entity getting the license, and that person may be an owner, a full-time employee or an officer. Someone without ownership completes the Power of Attorney form from the Board's Forms and Downloads page. The person who takes the Business and Law exam does not have to be the person who takes the trade exam, and up to two people may take each exam for a company.
Two limits from the Board's 8/2024 online application resource are worth knowing before you pick who sits. A qualifying agent can be listed on only one Tennessee contractor license unless that person has majority ownership of the entity, as the resource words it "majority ownership of 20%".
This page covers the contractor license. For the separate home improvement, limited licensed electrician and limited licensed plumber programs, confirm with the Board.
The one exception: BC-A/r
The restricted residential limited license, BC-A/r, is for residential contractors whose work costs less than $125,000, based on a financial statement. The Board's contractor page says that instead of taking the BC-A Residential trade exam and the Business and Law exam, these contractors complete a Limited License course through a Tennessee community college or vocational school. Only the examination requirement is waived; every other application requirement still applies.
A contractor who wants to go above $125,000 and remove the restriction must take the required exams and submit a reviewed financial statement, so a BC-A/r holder who grows will sit this exam later.
The testing vendor and what the exam looks like
Prov began administering the Board's exams on July 1, 2026. The Board's exam page says PSI ran exams already scheduled through September and that all new scheduling beginning July 1 goes through Prov. You register on Prov's site or by phone, using the Tennessee Board for Licensing Contractors as the certifying body and choosing the license you are seeking. Prov asks for your Social Security number at registration.
Here is what Prov's candidate information bulletin says about the Business and Law exam, read October 16, 2026.
| Item | What the bulletin says |
|---|---|
| Exam name | TN Contractor Business and Law (new licensees only) |
| Questions | 50 |
| Time allowed | 2.5 hours (150 minutes) |
| Passing standard | 73 percent |
| Format | Computerized, open book |
| Fee | $53 per attempt, paid to Prov at registration |
| Where | Prov centers (five in Tennessee) or Examroom at home |
The bulletin names Tennessee centers in Chattanooga, Greenville, Memphis, Murfreesboro and Tullahoma, and says Examroom, the at home service, runs Monday through Friday, 8 am until 10 pm.
Seventy three percent of 50 questions means at least 37 correct answers, because 36 correct is 72 percent.
The bulletin's question count by subject adds up to the 50 on the exam:
| Subject area | Questions |
|---|---|
| Estimating and Bidding | 7 |
| Contracts | 6 |
| Licensing | 5 |
| OSHA Safety | 5 |
| Labor Law | 5 |
| Tax Law | 5 |
| Business Organization | 4 |
| Project Management | 4 |
| Risk Management | 4 |
| Financial Management | 3 |
| Lien Law | 2 |
The bulletin describes the exam as covering basic business management skills for running a construction business, plus the legal requirements of establishing a business, including taxes, laws and regulations governing construction in Tennessee. If you are unsure which exam your classification needs, the bulletin says Prov cannot decide that for you. Ask the Board before you register, because the exam fee is not refunded if you take the wrong exam.
Open book, and what that means in the room
Tennessee contractor exams are open book, and the bulletin lists the reference for each exam under its description. For the Business and Law exam the bulletin lists one reference, and the Board's exam page links to the Business and Law reference manual for Tennessee. Through January 1, 2027, the bulletin allows alternate references, where any are listed for your exam, for candidates who already own materials from the prior testing vendor. After January 1, 2027, only the references Prov recommends are permitted. Check the current bulletin before you buy anything.
The bulletin sets firm rules for reference books:
- You may prepare a book only by highlighting text or attaching permanent tabs.
- Handwritten notes must be erased, and moveable tabs, Post-it notes and photocopied pages are never allowed.
- Test preparation study guides and practice examinations are not approved references and are not allowed in the testing center.
- Only a simple four function calculator is allowed, and a basic one is built into the test.
- Bring a current, government issued photo ID that matches your registration.
Two details from the bulletin catch people. If you take a break, the timer keeps running and every question you saw before the break is frozen. And if you arrive after the session has started, you are turned away and forfeit the fee; cancel or reschedule at least three business days ahead.
Pre-approval, results and retakes
Pre-approval is not part of the Business and Law exam. The Board requires pre-approval only for the plumbing CMC-A and full mechanical CMC trade exams, requested by emailing the Pre-Approval Request Form from the Forms and Downloads page, and the contractor page lists a $50 fee for that request. The bulletin adds that the CMC-A approval requires at least three years of plumbing experience or a degree in plumbing or mechanical engineering. Everyone else registers with Prov directly.
Results come by email as soon as you finish, and a candidate who does not pass receives a diagnostic report of weak subject areas. Official scores go directly to the Board, but the bulletin still tells candidates to include their score report with the application, and it states that passing does not grant a license.
There is no waiting period between attempts and no limit on retakes, and each retake costs $53. A candidate who has passed may not retake the exam unless the Board directs it. For next steps after a miss, see what to do after failing a contractor exam.
How long a passing score stays valid
The Board's exam page and contractor page both say exams are typically valid for two years. The Board's 8/2024 application resource adds that exam scores from an inactive applicant are typically accepted up to two years, and longer if you show evidence that the qualifying agent stayed active in the construction industry, such as working as a subcontractor, working in another state, or doing jobs under $25,000. If your score is near the two year mark, ask the Board before you rely on it.
When you do not retake it
The Board's 8/2024 application resource states that the Business and Law exam is not required to be retaken when applying for reinstatement, an additional license, replacing a qualifying agent or revising a current license.
| Situation | Retake Business and Law? |
|---|---|
| Reinstatement of a license | Not required, per the 8/2024 resource |
| Additional license | Not required, per the 8/2024 resource |
| Replacing a qualifying agent | Not required, per the 8/2024 resource |
| Revision of a current license | Not required, per the 8/2024 resource |
| New license, any classification except BC-A/r | Required |
| License from another state (reciprocity) | Required |
Three cautions apply. That resource is dated 8/2024, before the vendor change, and the current exam page does not repeat the list. It also asks applicants in those situations for a copy of the trade exam score if available, or a written waiver request. And when a qualifying agent leaves, the Power of Attorney form says the Board must be notified within 10 days and a new qualifying agent must pass the trade exams within a set window, so ask the Board for the current deadline. In any of these cases, confirm with the Board before you assume the exam is waived.
Reciprocity does not waive this exam
Tennessee will not accept a license from another state. The Board's contractor page says you cannot operate in Tennessee with a license from another state, but it has trade exam waiver agreements with several states. The waiver form states the waiver "is limited to the trade exam," so the Business and Law exam is required whether or not you are waiving a trade exam. The form lists Alabama, Arkansas, Louisiana, Mississippi, North Carolina, Ohio, South Carolina and West Virginia, and the Board also accepts NASCLA National trade exam scores. Applicants with disciplinary action, open complaints or felony convictions are not eligible for the waiver. Our Tennessee contractor license reciprocity guide shows the states and classifications side by side, and the Business and Law exam by state page compares Tennessee with other states.
Steps to take the exam and use the score
- Confirm your classification and the exams it needs in the Board's classification outline, and ask the Board if anything is unclear.
- Decide who will be the qualifying agent, and complete the Power of Attorney form if that person is not an owner.
- Read the Business and Law section and the reference rules in Prov's current candidate information bulletin.
- Register with Prov, choose the Tennessee Board for Licensing Contractors and the license you are seeking, and pay the $53 fee. Our guide to scheduling contractor exams covers the vendors in general.
- Prepare your reference with highlighting and permanent tabs only, and bring valid photo ID.
- Take the exam, then save your score report for the application.
- Submit the application and attach the score, a trade exam score or waiver form if one applies, and the other items on the Board's checklist. The Board lists the initial application fee at $250.
Frequently asked questions
Do I have to take the Tennessee Business and Law exam? If you are applying for a new contractor license, yes, unless it is the restricted residential BC-A/r license, which uses an approved course instead. The Board's waiver form states that every contractor license except BC-A/r requires it.
Is the Tennessee Business and Law exam open book? Yes. The Board and Prov both say so, and the bulletin limits how you may mark up your reference.
What score do I need? Prov's bulletin sets the passing standard at 73 percent for all of its Tennessee contractor exams. On the 50 question Business and Law exam, that means at least 37 correct answers.
Can an out of state license excuse the exam? No. Reciprocity waives only the trade exam. Business and Law is required for new applicants whatever state they are licensed in.
Does my score expire? The Board says exams are typically valid for two years, and its application resource says inactive scores are typically accepted up to two years, longer with evidence of continued industry activity. Confirm your date with the Board.
Who should sit for the exam, the owner or an employee? The qualifying agent, who may be an owner, a full-time employee or an officer. See whether the owner has to take the contractor exam and our Tennessee qualifying agent guide.
When you cannot sit or pass in time
Sometimes a person cannot sit or pass the exam in time, or a license cannot move by reciprocity. A company can still be licensed through a qualifying agent who already holds the license and qualifies the company as an owner or full time W-2 employee who supervises the work. Our contractor qualifier services explain the model, what a qualifying agent is covers the role, and you can start a conversation at Hire a Qualifying Agent. In Tennessee, the qualifying agent takes the exams for the entity, and a qualifying agent is limited to one license unless that person has majority ownership.
Talk to people who hold the licenses
Marshall Schofield and Jeremiah Jaskulski, our founders, are licensed general contractors, master electricians, master plumbers and master mechanical contractors. If you would like help deciding who should sit, which classification fits, or how to line up the application, call 615-219-2110. Our live exam classes are coming soon.
Sources
All pages read October 16, 2026.
- Tennessee Board for Licensing Contractors, Exam Information
- Tennessee Board for Licensing Contractors, Contractor license page
- Tennessee Board, Trade Exam Waiver (Reciprocity) with Tennessee, Rev. 06/2026
- Tennessee Board, Classification Outline
- Tennessee Board, Online Application Forms Resource, Rev. 8/2024
- Tennessee Board, Forms and Downloads
- Prov, Tennessee Contractor Candidate Information Bulletin
Disclaimer: This article is provided for educational and informational purposes only. It does not constitute legal advice, licensing guidance, or an offer of services. Licensing requirements vary by jurisdiction. For specific compliance questions, contact The Licensing Company for a confidential consultation.