Tennessee officials are urging residents to stay vigilant against contractor fraud during Contractor Fraud Awareness Week (May 18-22, 2026). The Tennessee Department of Commerce & Insurance’s Regulatory Boards Division and the Tennessee Board for Licensing Contractors are highlighting red flags associated with unlicensed or dishonest contractors, particularly for those rebuilding after Winter Storm Fern or planning spring renovations.

TDCI Commissioner Carter Lawrence emphasized that while most contractors are reputable, scammers can cause significant financial harm. Consumers are advised to verify that contractors are properly licensed and bonded, research their background, training, and insurance coverage, and report any unfair treatment by filing a complaint with the department. The Board for Licensing Contractors regulates contractors, home improvement contractors, limited licensed electricians, and plumbers to protect public health, safety, and welfare. In 2025, the Board received 858 complaints and imposed $634,036 in civil penalties through disciplinary actions on 214 of those cases.

Key recommendations include:

• taking time to research thoroughly
• obtaining multiple bids
• checking references
• always getting a detailed written contract that outlines timelines, payment terms, materials, change orders, and warranties

Consumers should verify licenses through the free Verify.tn.gov database, confirm local business licenses, and ensure the contractor carries proper insurance. Other important tips: avoid large upfront payments (state law limits down payments to one-third), never pay in full before completion or with cash only, be cautious of door-to-door solicitations offering unusually deep discounts, and watch for contractors who ask homeowners to pull permits themselves. License requirements generally apply for projects $25,000 or more, though local rules may govern smaller jobs.

For more information or to check a contractor’s complaint and disciplinary history, contact the Board at (800) 544-7693 or (615) 741-8307, email [email protected], or visit tn.gov/commerce.