Home improvement contractors are generally companies that manage and construct improvements to existing residences—whether kitchens, bathrooms, bedrooms, or complete remodels.

A contract for home improvement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In Tennessee, home improvement contractors are regulated to ensure consumer protection and fair business practices. Contractors must be licensed by the Tennessee Board for Licensing Contractors if the total cost of the project is $25,000 or more, which includes materials and labor. The contract for home improvement should clearly outline the scope of work, materials to be used, contractor's responsibilities, payment terms, completion time, insurance requirements, and provisions regarding mechanic's and materialmen's liens. Tennessee law requires that a written contract be provided for home improvement projects over $3,000. The contract must be detailed and include the contractor's license number. It is important for homeowners to verify that the contractor is properly licensed and to understand the lien laws, as these liens can be placed on the homeowner's property if the contractor fails to pay subcontractors or material suppliers. To release a lien, the contractor must provide a sworn statement that all bills have been paid or a bond must be posted.