Tennessee Construction Bidding Guide: State & Local Government Contracts 2025
Complete guide to bidding on Tennessee construction projects. Learn about TDOT, state procurement, Nashville and Memphis contracts, licensing requirements, and how to find opportunities in the Volunteer State.
Tennessee Construction Market Overview
Tennessee Construction Statistics
Market Size:
$22B+
Annual construction value
Public Sector:
$6B+
Government construction
Growth:
6-8%
Annual growth rate
Tennessee is one of the fastest-growing states in the Southeast, with significant construction activity driven by corporate relocations, population growth, and infrastructure investment. Nashville leads as a major growth market, while Memphis, Knoxville, and Chattanooga offer substantial opportunities.
Infrastructure
- • Highway expansion and maintenance
- • Bridge replacement program
- • Water/wastewater systems
- • Airport improvements
Buildings
- • K-12 school construction
- • University of Tennessee system
- • Healthcare facilities
- • State office buildings
Key Contracting Agencies
Tennessee Department of Transportation (TDOT)
Highways, bridges, and transportation infrastructure. Largest state construction agency with billions in annual lettings.
State Building Commission
State building construction and major renovations. Manages capital projects for state agencies.
Department of General Services - Central Procurement
Centralized procurement for state agencies. Maintains vendor registration system.
Tennessee Board of Regents / University of Tennessee
Higher education construction across state colleges and UT system campuses.
- Nashville (fastest growing)
- Memphis
- Knoxville
- Chattanooga
- Murfreesboro
- Davidson County (Nashville)
- Shelby County (Memphis)
- Knox County (Knoxville)
- Metropolitan Nashville Airport Authority
- Tennessee Valley Authority (TVA)
Licensing Requirements
Tennessee requires contractor licensing through the Board for Licensing Contractors for projects over $25,000. This threshold applies to both residential and commercial work.
License Classifications
- • BC - Building Contractor (General)
- • BC-A - Building Contractor Limited
- • BC-B - Residential Contractor
- • CMC - Masonry Contractor
- • CE - Electrical Contractor
- • CME - Mechanical Contractor
Requirements
- • Business and trade exams
- • Minimum experience (varies by class)
- • Financial statement
- • Workers compensation
- • Surety bond (varies by limit)
Limit Categories
Tennessee licenses are issued with specific dollar limits per project. Limits range from $25,000 to unlimited based on qualifications and financial capacity.
$500K
Entry Level
$1.5M - $9M
Mid-Range
Unlimited
Highest Tier
Finding Bid Opportunities
Edison Supplier Portal
State procurement system. Register at tn.gov/generalservices.
TDOT SmartWay
Transportation project lettings at tdot.tn.gov/contracts.
State Building Commission
Capital construction projects at tn.gov/finance/sbc.
BidFinds
Aggregates Tennessee opportunities from state and local sources.
Major Cities
- • Nashville - nashville.gov/Purchasing
- • Memphis - memphistn.gov/purchasing
- • Knoxville - knoxvilletn.gov/purchasing
- • Chattanooga - chattanooga.gov/purchasing
Industry Resources
- • AGC of Tennessee
- • Associated Builders and Contractors TN
- • Tennessee Road Builders Association
- • Home Builders Association of Tennessee
Tennessee Certifications
Small Business Enterprise (SBE)
Tennessee program for certified small businesses. Preferences on state contracts.
Minority-Owned Business Enterprise (MBE)
Certification through Governor's Office of Diversity Business Enterprise.
Woman-Owned Business Enterprise (WBE)
State certification for women-owned businesses.
DBE (Disadvantaged Business Enterprise)
For federally-funded transportation projects. TDOT certifies DBE firms.
Tennessee provides preferences for service-disabled veteran-owned businesses on state contracts.
- 3% price preference on eligible contracts
- Must be certified by state or VA
- 51% owned by service-disabled veteran
Success Tips for Tennessee
Get Licensed Appropriately
Ensure your license limit covers the project sizes you're pursuing. Upgrade as needed.
Register in Edison
State supplier registration is required for most state agency work.
Build TDOT Relationships
Transportation is huge in Tennessee. Attend pre-bid meetings and industry days.
Consider Regional Focus
Tennessee has three distinct regions (West, Middle, East). Consider focusing geographically.
- No state income tax affects labor cost calculations
- Nashville market is highly competitive with many out-of-state contractors
- TVA projects follow federal procurement rules
- Seismic requirements in western Tennessee (New Madrid fault zone)
- Strong growth means labor market is tight in major metros
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