As used in this part, unless the context otherwise requires:

(1) “Actual loss” means amounts paid or payable for the cost of restoration, repair, replacement or completion of work performed in a poor or unworkmanlike manner or that is otherwise inadequate or incomplete;
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Terms Used In Tennessee Code 62-6-501

  • Board: means the state board for licensing contractors. See Tennessee Code 62-6-501
  • Contract: A legal written agreement that becomes binding when signed.
  • Contractor: includes , but is not limited to, a prime contractor, electrical contractor, electrical subcontractor, mechanical contractor, mechanical subcontractor, plumbing contractor and plumbing subcontractor, masonry contractor, and roofing subcontractor where the total cost of the roofing portion of the construction project is twenty-five thousand dollars ($25,000) or more. See Tennessee Code 62-6-102
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • home improvement: includes the installation of central heating or air conditioning systems, storm windows or awnings. See Tennessee Code 62-6-501
  • Home improvement contract: means an agreement between a contractor and an owner for the performance of home improvement, and includes all labor, services and materials to be furnished and performed under the agreement. See Tennessee Code 62-6-501
  • Owner: means any homeowner, tenant or any other person who orders, contracts for or purchases the home improvement services of a contractor or the person entitled to the performance of the work of a contractor pursuant to a home improvement contract. See Tennessee Code 62-6-501
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: includes an individual, partnership, corporation, trust, association, owner, contractor, salesperson or any other legal entity. See Tennessee Code 62-6-501
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Subcontractor: means any person other than a materialman or laborer who enters into a contract with a contractor for the performance of any part of the contractor's contract or who enters into a contract with any subcontractor for the performance of any part of the subcontractor's contract and who does not perform work other than as a subcontractor. See Tennessee Code 62-6-501
(2) “Board” means the state board for licensing contractors;
(3) “Claimant” means an owner who:

(A)

(i) Resides in a residence or dwelling unit with respect to which a claim is made; or
(ii) Owns not more than four (4) residences or dwelling units; and
(B) Makes a claim against the bond;
(4)

(A) “Home improvement” means the repair, replacement, remodeling, alteration, conversion, modernization, improvement or addition to any land or building, or that portion of the land or building, that is used or designed to be used as a residence or dwelling unit for one (1), two (2), three (3) or four (4) dwelling units, and includes the construction, replacement or improvement of driveways, swimming pools, porches, garages, landscaping, fences, fall-out shelters, roofing, painting and other improvements to structures or upon land that is adjacent to a dwelling house for one (1), two (2), three (3) or four (4) dwelling units. Without regard to the extent of affixation, “home improvement” includes the installation of central heating or air conditioning systems, storm windows or awnings;
(B) “Home improvement” does not include:

(i) The construction of a new home building or work done by a contractor in compliance with a guarantee of completion of a new building project;
(ii) Any home improvement for which the contract price is three thousand dollars ($3,000) or less;
(iii) The sale of goods or materials by a seller who neither arranges to perform nor performs directly or indirectly any work or labor in connection with the installation of or application of the goods or materials, including the incidental installation of the goods or materials; provided, that the installation does not involve alterations to the structure of the building or its plumbing or wiring;
(iv) Any replacement, installation or connection of appliances to existing exposed plumbing lines that requires alteration of the existing lines;
(v) The replacement, installation and connection of dishwashers, disposals and refrigerators with icemakers to existing exposed household plumbing lines; or
(vi) The replacement, installation and connection of dryers; or
(vii) Interior design services that are services in connection with the design, utilization, furnishing or fabrication of elements in interior spaces of buildings and related structures and includes, without being limited to, any or all of the following:

(a) Identifying, researching or creatively solving problems pertaining to the function and quality of interior space;
(b) Performing services to include consultations, programming, design analysis, drawings, specifications and installations in connection with space utilization, the specification of fixtures and their location, furnishings, reflected ceiling plans and the fabrication of nonstructural elements of interior spaces of buildings, excluding those services specified by law to require other licensed professionals, such as the design of mechanical, plumbing, electrical and load-bearing structural systems; and
(c) Preparing drawings and documents relative to the design of interior spaces;
(5) “Home improvement contract” means an agreement between a contractor and an owner for the performance of home improvement, and includes all labor, services and materials to be furnished and performed under the agreement;
(6) “Home improvement contractor” means any person, other than a bona fide employee of the owner, who undertakes or offers to undertake or agrees to perform any home improvement for the owner, whether or not the person is licensed or subject to the licensing requirements of this chapter;
(7) “Licensee” means a person licensed to engage in the home improvement business under this part;
(8) “Owner” means any homeowner, tenant or any other person who orders, contracts for or purchases the home improvement services of a contractor or the person entitled to the performance of the work of a contractor pursuant to a home improvement contract;
(9) “Person” includes an individual, partnership, corporation, trust, association, owner, contractor, salesperson or any other legal entity; and
(10) “Subcontractor” means any person other than a materialman or laborer who enters into a contract with a contractor for the performance of any part of the contractor’s contract or who enters into a contract with any subcontractor for the performance of any part of the subcontractor’s contract and who does not perform work other than as a subcontractor.
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