Avoid Contractor Scams: Statewide Awareness Week Promotes Consumer Protection

Tennessee Governor Bill Lee has declared May 19-23, 2025 as Contractor Fraud Awareness Week in Tennessee. During this week, the Tennessee Department of Commerce & Insurance (TDCI) and the Tennessee Board for Licensing Contractors are reminding consumers to educate themselves when it comes to the state’s contracting regulations and what consumers can do if they discover a contractor has not lived up to his or her end of a deal.  

“Tennesseans have shown incredible resilience in the face of numerous weather-related catastrophes in recent years, including the devastation experienced last fall in Northeast Tennessee brought by flooding from Hurricane Helene and the generational flooding that occurred in West Tennessee in April,” said TDCI Commissioner Carter Lawrence. “Unfortunately, disasters typically draw scammers, bad actors, and fly-by-night storm-chasing contractors who create headaches and frustrations for their unsuspecting victims. I urge Tennessee residents to learn more about contracting regulations before hiring anyone. If you discover that are dealing with a fraudulent contractor, you should contact our team and your local law enforcement agency today and file a report.”  

The Board for Licensing Contractors’ mission is to protect the public’s health, safety, and welfare through the regulation of contractors, home improvement contractors, limited licensed electricians, and limited licensed plumbers. In 2024, the Board received a total of 884 complaints and took disciplinary actions totaling $990,896.25 in civil penalties from 299 of those complaints. 

“Educating yourself about how to spot the red flags that you’re dealing with a scammer is critical in helping you avoid dealing with a dishonest individual in the first place,” said Board Executive Director Chris Burkhart. “Take your time, do your research, and always get it in writing when dealing with a contractor. Honest contractors won’t push you into making a deal or avoid answering your questions.”  

Consumers can check the complaint and disciplinary history of a contractor by contacting the Board for Licensing Contractors by phone at (800) 544-7693 or (615) 741-8307 or emailing our team at contractors.home-improvement@tn.gov. To file a complaint, consumers should visit our website at tn.gov/commerce. 

Consumers should remember that Tennessee's felony theft law covers consumers whenever a contractor takes money and fails to perform work within 90 days. Pursuant to T.C.A. § 39-14-105, consumers may contact local law enforcement and file charges to prosecute the contractor for theft. More information about the law can be found here. 

Before starting a home improvement project, consumers should familiarize themselves with the following tips to help ensure the project goes smoothly. 

• Before hiring a professional, consumers should first visit TDCI’s Verify licensing database in order to verify that the individual is properly licensed to work in Tennessee. The status of a professional’s license, how long the individual or company has been licensed, when their license expires, and additional helpful information can all be found at Verify. 
• Consumers are encouraged to file complaints with TDCI when they feel they have been the victim of an unfair or deceptive business practice, witness unlicensed activity, or seen suspected misconduct or other violations of respective laws or rules. 
• In Tennessee, a contractor’s license is required before bidding or price negotiations when the total cost of the project is $25,000 or more. 
• A Home Improvement license is required for home improvement projects from $3,000 to less than $25,000 (total cost or contract, including materials and labor), for the following counties: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford and Shelby. 
• A Limited License Electrical (LLE) and Limited License Plumbing (LLP) is required for electrical and plumbing work less than $25,000 unless the local jurisdiction issues its own limited license. Please check with your local building authority to confirm what licensure is required. 
• Get several bids and check references before committing to a contractor. 
• Be wary of contractors selling repairs door-to-door, especially when they ask to receive payment upfront or offer deep discounts. 
• Generally, do not pay more than 1/3 of the cost of a project upfront. Make sure you have the terms of payment in writing.