Contractor Licensing Exam Practice

Tennessee BC-B (Small Commercial Contractor) Licensing Exam Practice Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A | Instant Download Pdf

• Which of the following best describes the primary role of a BC-B

contractor?

• Residential remodeling only
• Large-scale commercial construction
• Small commercial construction projects
• Electrical and plumbing subcontracting

Rationale: BC-B contractors are licensed to perform small commercial

construction projects, typically under $5 million in value.

2. Before starting a construction project, a contractor must obtain:

• A verbal agreement with the client 1 / 4

• All required permits from local authorities
• Only insurance certificates
• A subcontractor agreement

Rationale: Permits ensure that construction complies with building codes

and legal requirements.

• What is the maximum bonding requirement for a BC-B contractor in

Tennessee?

A. $50,000

B. $100,000

C. $500,000

D. $1,000,000

Rationale: Tennessee law requires BC-B contractors to maintain a surety

bond of at least $100,000 to protect clients against incomplete or defective work.

• Which document legally defines the scope of work for a construction

project?

• Invoice
• Contract
• Permit
• Proposal

Rationale: A contract clearly defines project scope, responsibilities,

payment terms, and legal obligations. 2 / 4

5. The term “change order” refers to:

• Terminating a contract
• Modifying the original scope, cost, or schedule of work
• A request for payment
• Issuing a permit

Rationale: Change orders formalize any changes to the initial project

agreement to avoid disputes.

• In Tennessee, how long must contractor records be retained?
• 1 year
• 2 years
• 5 years
• 10 years

Rationale: Contractors must keep project records, contracts, and financial

documents for five years for compliance and auditing purposes.

• Which of the following is required for all BC-B contractors in

Tennessee?

• OSHA 500 certification
• Workers’ compensation insurance
• LEED accreditation
• EPA licensing

Rationale: Workers’ compensation coverage protects employees in case of

workplace injuries and is legally required. 3 / 4

• What is the primary purpose of a construction lien?
• To report accidents
• To secure payment for labor or materials supplied
• To obtain building permits
• To hire subcontractors

Rationale: A lien ensures that contractors, subcontractors, and suppliers

can legally claim payment if unpaid.

• Which of the following materials requires special handling due to

health risks?

• Concrete
• Wood
• Asbestos
• Glass

Rationale: Asbestos is a hazardous material and must be handled

according to safety regulations to prevent health risks.

• What is the primary purpose of OSHA regulations on

construction sites?

• Reduce project costs
• Ensure worker safety and prevent accidents
• Improve design quality
• Expedite permit approval
• / 4