It follows a motion at the council's monthly meeting this week which asked that where possible, first preference for work on local authority houses would be given to local businesses.
However, CEO of Tipperary County Council, Joe McGrath told the elected representatives that they were prohibited from showing preference for rate payers but he suggested that the wording of the terms and conditions of local government contracts could be changed with approval from the Department.
Councilors agreed to write to the Department to seek the changes.
Sinn Fein representative Martin Brown, who raised the issue, says where possible, supporting local businesses should be a priority for the council.
