10 Red Flags When Hiring a Contractor in Tennessee

Quick answer: Warning signs include refusal to show required credentials, missing proof of insurance, an unclear quote, pressure to sign immediately, unexplained advance payments, and attempts to avoid permits. Ask for written answers and verify them before committing.

Many difficult projects begin with warning signs that are easy to miss when you are eager to get work started. After severe weather, urgency can make it especially hard to slow down and check a contractor’s credentials.

I’m Cory Falkner, owner of Brown Dog Builders. With 30+ years of building and remodeling experience, including work in California, and a new Tennessee chapter, these are ten warning signs I’d encourage homeowners to investigate.

1. No license, or they won't show it

Tennessee requires a prime-contractor license before bidding or price negotiations for a project of $25,000 or more. Other credentials may be needed below that amount. Use the state’s Verify a License database to check the name, status, classification, and monetary limit.

What a good contractor does: gives you the number without being asked twice, and it matches the name on the contract.

2. No certificate of insurance

Ask for evidence of applicable general liability and workers’ compensation coverage or a valid exemption. Coverage depends on the policy, the work, and the facts of a claim; a certificate alone does not guarantee payment.

What a good contractor does: arranges for their insurance agent to provide current documentation and explain the coverage or applicable exemption.

3. A vague, one-line quote

"Kitchen remodel: $45,000" tells you nothing about what you're actually buying. Vague quotes are how small jobs turn into big bills.

What a good contractor does: gives you a written, itemized estimate with scope, allowances, exclusions, and a timeline. Our post What Makes a Contractor Estimate Reliable? Read the guide ↗ walks through what to look for.

4. "This price is only good today"

Material quotes and scheduling can have legitimate expiration dates. The concern is pressure that prevents you from reviewing the scope, asking questions, and understanding why an offer expires.

What a good contractor does: gives you time to compare, ask questions, and call references.

5. Cash only, or a big deposit up front

Be very cautious of anyone who wants most of the money before work starts, or who only takes cash.

What a good contractor does: asks for a reasonable deposit to schedule the work and order materials, then ties the rest of the payments to completed milestones.

6. "You pull the permit, it's easier"

Be cautious if a contractor asks you to use an owner permit to avoid licensing or inspection requirements. Verify who may apply and who will be responsible with the building department for the property. Lawful owner-builder arrangements have their own rules.

What a good contractor does: explains the required permits and responsibilities, and follows the local authority’s requirements.

7. No track record you can check

Trucks that appear after a storm and disappear once they're paid, a phone number that goes to voicemail, no business address, and no references are all warning signs.

What a good contractor does: shows you photos of their own work, gives you references you can call, and has a real business address and a license you can verify. A contractor who is new to the area should be able to show you all of this from their previous work.

8. A bid far below everyone else's

A much lower bid may reflect a different scope, lower allowances, or omitted costs. It can also reflect a different approach or overhead. Ask for an explanation before drawing conclusions.

What a good contractor does: explains what's included line by line, so you can compare bids fairly.

9. Poor communication before you've signed

Missed appointments, unanswered questions, and unclear explanations deserve attention. Discuss expectations early and look for a consistent pattern rather than judging a single delay.

What a good contractor does: shows up when they say, answers questions in plain English, and tells you how they'll keep you updated during the job.

10. No written contract or change-order process

Handshake deals feel friendly until there's a disagreement. Then it's your memory against theirs.

What a good contractor does: puts the scope, price, schedule, payment terms, and change-order process in a signed contract before work begins.

Red flags at a glance

What to do if you already hired the wrong contractor

• Review the contract and get appropriate legal or consumer-protection advice before withholding disputed payments or ending the agreement.
• Write everything down: dates, payments, texts, and photos of the work.
• Send your concerns in writing and keep a copy.
• Contact the Tennessee Board for Licensing Contractors about complaints or suspected unlicensed activity. Use the Board’s current complaint guidance for the appropriate process.
• Consider an independent, appropriately qualified assessment of the work before repairs obscure the condition.

Frequently asked questions

How do I know if a contractor is legitimate in Tennessee?

Check their license with the state's Verify a License tool, ask for a certificate of insurance, call two recent references, and get a written, itemized estimate.

How much deposit should a contractor ask for?

It varies with the project and the materials that need to be ordered. Be cautious of anyone asking for most of the price before work starts. Payments should follow completed milestones.

What should I watch for after a storm?

Be careful with pressure to sign immediately, requests to sign over insurance payments without understanding them, and refusal to provide required credentials. Address immediate safety needs while taking time to verify the contractor.

Where can I report a bad contractor in Tennessee?The Tennessee Department of Commerce & Insurance and its Board for Licensing Contractors provide complaint guidance, including for suspected unlicensed activity.