Hiring a Contractor in Middle Tennessee: A Checklist

Most remodeling problems start before the first nail: a bid that leaves things out, a contractor without the right license, or a homeowner talked into pulling the permit. Middle Tennessee building departments see the results all the time, and some say so plainly. Gallatin's codes department, for example, publishes a list of red flags for homeowners. This checklist pulls together that advice, state licensing rules and Metro Nashville's warnings.

We're a free matching service, not a contractor, and we don't vouch for anyone. Run every contractor through these steps, including the ones you find through us.

1. Define the job before you call anyone

Write down what you want done, what's staying and what's out of scope. Three bids for "redo the bathroom" will describe three different projects. Three bids for "replace the tub with a tiled shower, new vanity and toilet, keep the existing layout" can be compared.

Check whether you're in an HOA, a historic overlay or a floodplain. Each adds approvals, and a good contractor will ask.

2. Check the license and its limit

Tennessee requires a state contractor's license for jobs of $25,000 or more, and in nine counties, including Davidson, Rutherford and Robertson, a Home Improvement license for residential remodeling from $3,000 to $24,999. On Verify:

• confirm the license is active and the name matches the bid;
• check the classification fits the work;
• check the monetary limit covers your contract price.

Details are in our license guide. Electricians, plumbers and HVAC contractors also need local trade licenses or the state's limited licenses, depending on the town.

3. Insurance and bonds

Ask for certificates of general liability and workers' compensation insurance, sent directly from the insurer, naming you as certificate holder. The state requires both for a Home Improvement license, plus a $10,000 surety bond.

Many cities also require a permit bond. Gallatin lists general liability, workers' comp, a state contractor license and a city permit bond as required documentation for contractors. Metro Nashville's repair guide explains why the bond matters to you: when a licensed contractor pulls the permit, the contractor is responsible for code compliance, and its permit bond can be used to repair code violations.

4. Insist the contractor pulls the permit

This is the step most often skipped. Gallatin tells homeowners to avoid contractors who want you to pull the permit in your name, because the permit holder is legally responsible for finishing the job to code. Metro Codes says the same. An owner who pulls the permit is responsible for compliance, even for work the contractor does.

Many cities also limit owner permits to the home the owner lives in. Springfield, for one, allows homeowner permits only for the owner's current primary residence. A contractor who asks you to pull the permit may not be able to get one.

5. Compare bids line by line

Ask every bidder to price the same scope, broken out by task: demolition, framing, plumbing, electrical, finishes, cleanup and permit fees. Look for:

• allowances (for tile, fixtures or cabinets) that are realistic for what you actually want;
• what happens if they find rot, old wiring or structural damage, and how that extra work is priced;
• whether dumpster, haul-off and permit fees are included.

The lowest bid often leaves out what the others included.

6. Get a written contract

Gallatin's list of what a contract should include is a good template:

• the contractor's company name, address, phone numbers and license numbers;
• your name and the job address;
• the date signed;
• a detailed scope of work with costs by task, and a clear statement of what's included and excluded;
• estimated start and finish dates;
• a payment schedule;
• a termination clause;
• protection against liens from subcontractors (ask for lien waivers as subs and suppliers are paid);
• whether permits will be obtained and who pulls them.

Add how change orders are approved (in writing, with the price, before the work), and the warranty terms. Gallatin notes contractors typically provide a one-year warranty on materials and labor.

7. Pay as work is done, never in cash

Gallatin's advice: never pay cash, and avoid contractors who demand full payment before doing any work. Tie payments to milestones you can see, such as passed inspections, delivered cabinets or a finished rough-in. Hold a final payment until the final inspection passes and the punch list is done.

8. Storm and insurance jobs

After hail, wind or ice, door-knockers arrive. Tennessee Code § 62-6-602 lets you cancel a roofing contract that depends on an insurance claim, by written notice before midnight on the third business day after your insurer tells you in writing that the claim isn't fully covered. Don't sign on the doorstep. See roofing and our after-storm permit guide.

9. During the job

• Keep the permit card posted and track inspections.
• Don't let walls get closed before rough inspections pass.
• Keep a folder of the contract, change orders, invoices, lien waivers, warranties and photos.