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- A Guide to North Carolina General Contractor Licensing
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A Guide to North Carolina General Contractor Licensing
RocketCert Staff
01.23.2023
Sections:
- Who Needs a License?
- Types of General Contractor Licenses
- Background Checks
- Exam Requirements
- License Reciprocity
- How to Study
Introduction
There are three levels of general contractor licenses in North Carolina under two main types. You may choose to earn either a building contractor license or a residential contractor license. Under each of those types of general contractor licenses are three sub-types of licenses. Each sub-type corresponds to a specific project size level:
- Limited: $750,000 limit per each project
- Intermediate: $1,500,000 limit per each project
- Unlimited: Any project of any size
Before applying or preparing to apply for a general contractor license in North Carolina, you’ll need to decide which license is right for you. After that, you will need to gather all of the required supplemental materials and take the appropriate state exams for licensure.
The North Carolina Licensing Board for General Contractors allows candidates to choose between the state exam and the exam issued by the National Association of State Contractors Licensing Agencies. Once the test is successfully taken, candidates can then apply for licensure.
Who Should Obtain a General Contractor License?
The license should be obtained by the person or company that will be bidding, contracting, and doing the work. The license can be given to individuals or businesses, but it is only valid for the specific legal entity that it is granted to and can only be used for the work that the entity does.
Applicants must be at least 18 years old, possess good moral character, meet the minimum financial requirements, and pass an exam.
What is a Qualifier?
A qualifier is a managing employee, officer, member of LLC or partnership who has passed the licensing exam for the company. An individual may be the qualifier for two licenses.
Residential General Contractor
If you hold this type of license, you can bid on or contract any building construction that pertains to the construction of people’s homes. This includes driveways, water systems, and sidewalks. The subtypes for the residential license are:
- Limited: $750,000 limit per each project
- Intermediate: $1,500,000 limit per each project
- Unlimited: Any project of any size
The above limitations describe the size of the projects that holders of each license subtype can legally work on.
Building General Contractor
Holders of this license can bid on or contract construction work on any highway, grading, public utility, structure, or building where the cost of the project is $30,000 or higher. The project size limits for each sub-type of license are the same as those for the residential license.
Financial Requirements for Licensure
All contractors with licenses of any type must have the following amounts of surety bonds, capital, or net worth:
- Limited: $17,000 capital, $80,000 net worth, or $350,000 surety bond
- Intermediate: $75,000 capital (demonstrated by an audited statement) or a $1 million bond
- Unlimited: $150,000 working capital (demonstrated by an audited statement) or a $2 million surety bond.
Once the required documentation is available for submission, you must contact the North Carolina Licensing Board for General Contractors to apply for your license.
Insurance Requirements*
There are no insurance requirements you need to meet to obtain a license, and bonds are only necessary if you are using a surety bond instead of meeting the minimum financial requirments. While you are not required to have workers compensation insurance to apply for your license, you are still required by NC state laws to have workers compensation insurance.
Background Checks Are Now Required for Contractor License Applicants in North Carolina
While criminal background checks are not required for license renewal, beginning January 1, 2023, they are now required for all new license applicants.
All persons named on the application, including the qualifier, must submit an online background check application and payment to the board’s third-party vendor. If this is not completed, the applicant will be ineligible for licensure. Fees paid are non-refundable.
How to Get an NC Contractor License: Testing Requirements
Before sitting for your exam, you must first be pre-qualified by submitting a new license application. These applications take around two weeks to process. The state will then send you an eligibility letter with the necessary info to schedule your exam. If you choose to take the North Carolina state contractor exam, that is the only exam you must pass. However, you also have the choice to take the NASCLA Commercial General Building Contractor Exam. If you choose to take the NASCLA Exam, you must also pass the NC Business & Law Exam.
The North Carolina Building Contractor Exam
This exam has 90 questions, and you must get 63 of them correct to pass. You will have 200 minutes to complete the exam, which is a partially open-book test. Topics covered include carpentry, business and law, masonry, metals, erosion control, licensing, and more.
NASCLA Commercial General Building Contractor Exam
The NASCLA exam is currently accepted by 17 state licensing boards with more on the way. In most of these states you will also need to complete their Business & Law exam and submit your application. There are 115 questions on this exam, and you need to get 81 correct to pass. You will have 330 minutes for this exam, which is open-book. Topics include concrete, wood, metal, doors, glazing, and mechanical systems.
North Carolina Business and Law Exam
The Business and Law Exam is required for those who choose to take the NASCLA exam or those who are applying for a license via reciprocity. This exam is 40 questions long and you will have 90 minutes to complete the exam. Like the NASCLA and NC Contractor exam, this exam is also open book. In order to pass you must get at least 70% of the questions correct. This exam will cover topics such as Erosion and Sedimentation Control, Licensing, Subcontractor's Pay Requirements, Liens and Bonds, and One Call. The main purpose of this exam is to ensure contractors are knowledgeable of the NC specific laws and rules.
License Reciprocity
If you have already passed a similar exam in another state, you may be able to apply for a license via reciprocity. North Carolina has reciprocity agreements with the following states: South Carolina, Tennessee, Louisiana, Georgia, Mississippi, Alabama, and Florida. You must still submit a new license application, and the licensing board from the other state must complete the "Exam Waiver Form" (this can be found within your application). When applying via reciprocity you must still pass the business and law exam.
Study for Your NC Contractor License with RocketCert
For the best exam prep materials, customer service, and satisfaction guarantees in the industry, sign up with RocketCert. Our study materials will ensure you’re ready for your North Carolina contractor license exams. You can find some of our available exam prep courses below. Our exam prep covers all of the topics on the exam, and will teach you how to pass on your first attempt. The exam prep also includes a test simulation that you can take an unlimited number of times. Each time you take it you'll get a new set of questions from our extensive question bank to help you practice locating crucial information in your books. Our bundles are the best way to prepare for the exam. Each bundle includes all the books you can use on the exam, the exam prep course, and custom book tabs. You also get unlimited access to expert instructor support with any exam prep purchase.
North Carolina Residential Contractor Bundle
Includes the following courses:
- NC Residential Contractor Online Exam Prep
Plus the following:
- All the books to use during the exam
- Permanent/Pre-Printed Tabs
- Free Shipping!
- Instructor Support
- No Pass No Pay Policy
- Lifetime Access from nearly any device
North Carolina Building Contractor Bundle
This exam does NOT require applicants to pass the separate Business and Law
Includes the following:
- NC Building Contractors Online Exam Prep
- All the books to use during the exam
Plus the following:
- Permanent/Pre-Printed Tabs
- Free Shipping!
- Instructor Support
- No Pass No Pay Policy
- Lifetime Access from nearly any device
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