TDCI Highlights Consumer Awareness During Contractor Fraud Awareness Week (May 18-22)

NASHVILLE – As part of Contractor Fraud Awareness Week (May 18-22, 2026), the Tennessee Department of Commerce & Insurance’s (TDCI) Regulatory Boards Division and the Tennessee Board for Licensing Contractors are reminding Tennesseans to recognize the red flags of fraudulent, fly-by-night contractors.

“While most contractors are honest and hard-working, scammers and fraudsters can interject themselves into the lives of unsuspecting consumers, potentially causing financial hardships and headaches,” said TDCI Commissioner Carter Lawrence. “If you’re still in the midst of rebuilding after Winter Storm Fern or planning a spring renovation, make sure your contractor really is licensed and bonded and don't just trust anyone with your money. I encourage consumers to first learn Tennessee’s rules governing contractors and ask questions to their contractor about their background, training, and insurance coverage. If consumers ever feel that they have been treated unfairly, they should contact our team and file a complaint.”

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.  TDCI’s Division of Regulatory Boards licenses and regulates more than 357,000 Tennesseans across 26 regulatory programs, overseeing professionals and businesses statewide.

 In 2025, the Board received a total of 858 complaints and took disciplinary actions totaling $634,036 in civil penalties from 214 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.”

While social media platforms may be helpful avenues to gather options and recommendations, consumers should still conduct thorough research as scammers may also be lurking on these and similar sites.

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.

Before selecting a professional, consumers should remember the following tips:

• 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.
• For work of less than $25,000, consumers should check with their local government’s building codes office to confirm whether a contractor needs a state license or local license to perform home improvement, electrical, plumbing or HVAC work, as well as their permit requirements for inspections. TDCI’s website includes information on who needs a home improvement license, a limited licensed plumber license, and a limited licensed electrician’s license.
• Before hiring a contractor, visit Verify.tn.gov, a free online database where you can check the license status of thousands of professionals and businesses.
• Ask for several bids and check references before commencing work.
• Get it in writing. Contracts should include details such as the start and completion dates, payment terms, installation costs allowances, materials, labor, change orders, and warranty information. Consumers should retain a copy of the contract.
• Check the Tennessee Secretary of State’s business search website to see if they are organized in Tennessee, or if they have a Certificate of Authority to operate in Tennessee if they are organized in another state.
• Check with your county clerk’s office to confirm that the contractor has the appropriate local business license to operate. A business license is separate from a contractor’s license. Construction contractors generally need a county business license if their annual gross receipts exceed $3,000. 
• Make sure the contractor is insured to cover workers’ compensation, damage and general liability insurance by requesting copies of the contractor’s insurance certificates showing a current effective date.
• Never pay cash or pay the total amount before the work is complete or turn over your insurance check. (Consider paying with credit cards with special protection). State law prohibits requiring more than one-third down payment.
• Be wary of contractors selling repairs door-to-door, especially when they offer deep discounts that seem too good to be true.
• If the contractor asks you to pull your own permits, that’s a warning sign. The person performing the work should obtain the building permits, not the homeowner.

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