How to Become a General Contractor in North Carolina
A contractor’s license is required in North Carolina for anyone who works on projects valued over $40,000. The state issues building and residential licenses depending on whether you’re working in commercial or residential construction. The requirements to obtain your license are based on licensing limitations related to construction costs and the contractor’s financial ability.
In this article, we’ll explore how to become a general contractor in North Carolina, including the license classifications, limitations, examinations, and renewals.
Requirements to Becoming a Licensed Contractor
For contractor license classifications, you will need to meet some basic requirements and pass an exam. You must:
- Be at least 18 years old
- Have good moral character
- Provide evidence of financial responsibility
- Submit the appropriate application fee
- Consent to a criminal background check
North Carolina Contractor License Classifications
The North Carolina Licensing Board has multiple contractor classifications. Here’s a closer look at each.
Residential Contractors
These contractors are licensed to work on residential dwellings, including construction and demolition, site work, driveways, sidewalks, and water and wastewater systems necessary for residential construction.
Residential contractors are also licensed to perform specialty work such as:
- Insulation
- Interior construction
- Masonry
- Roofing
- Swimming pools
- Asbestos removal
Building Contractors
Building Contractors work in commercial, industrial, institutional, and all types of construction. Under this license, contractors perform site work, parking structures, driveways, and sidewalks, storm drainage, retaining walls, indoor and outdoor recreational facilities, and hardware and accessory structures.
Building contractors also complete specialty work such as concrete, insulation, interior construction, marine, asbestos removal, and wind turbine farms.
Under each license type, a contractor can hold a Limited, Intermediate, or Unlimited License. License limitations are based on the total project costs and required assets of the contractor.
Public Utilities
Contractors working in public utilities in North Carolina often operate in wastewater facilities or other facilities included in the state code. They are designated by letter:
- S—Boring and Tunneling
- PU—Communications
- PU—Fuel Distribution
- PU—Electrical-Ahead of Point Delivery
- PU—Water Lines and Sewer Lines
- PU—Water Purification
- S—Swimming Pools
Highway Contractors
This classification allows contractors to work in highway construction activity, which can include fixing bridges, laying down pavement, installing guard rails, fencing, and lights, and moving utility lines. (Interested in this classification? Prepare for the certification with our North Carolina Highway Contractor Exam Prep Course!)
License Limitations in North Carolina
Limited License
- Single project cost limited to $750,000, excluding lands costs and ancillary costs to improve the land.
- A net worth of $80,000, or assets must exceed liabilities by $17,000.
- Surety bond of $175,000 in lieu of demonstrating sufficient working capital.
Intermediate License
- Single project cost limited to $1.5M, excluding lands costs and ancillary costs to improve the land.
- Assets that exceed liabilities by $75,000.
- Surety bond of $500,000 in lieu of demonstrating sufficient working capital.
Unlimited License
- No project costs restrictions.
- Assets that exceed liabilities by $150,000.
- Surety bond of $1M in lieu of demonstrating sufficient working capital.
Getting your Contractor's License in North Carolina
North Carolina also recognizes the National Association of State Contractors Licensing Agencies (NASCLA) exam. Before you can register to take your exam, you must apply for your license with the Board. Once approved, you can register to take the exam.
PSI Services proctors the exam, which must be taken within 120 days of receiving your eligibility letter. The exam fee is currently $79. A passing score of 70% is needed.
You are required to pass the Business and Law Exam and either the North Carolina Building Contractor or the NASCLA Accredited Commercial Building Contractor Exam. All exams are open book. Books may be highlighted, underlined, and indexed. All indexing (tabbing) must use permanent plastic tabs or Redi-Tag self-stick permanent adhesive index tabs. No handwriting in any reference materials is allowed.
The Business and Law Exam has 40 questions. You must complete the exam in 90 minutes. The Business and Law Exam covers:
- Erosion and Sediment Control (3 items)
- Licensing (21 items)
- Subcontractor’s Pay Requirements (3 items)
- Liens and Bonds (8 items)
- One Call (5 items)
The North Carolina Building Contractor Exam has 90 questions. The time limit is 200 minutes. The topics covered include:
- Site Work (6 items)
- Concrete (13 items)
- Masonry (6 items)
- Metals (12 items)
- Carpentry (7 items)
- Roofing (6 items)
- Associated Trades (3 items)
- Business and Law (7 items)
- Safety (4 items)
- Estimating, Plan Reading and General Building Code Requirements (14 items)
- One Call (2 items)
- Erosion and Sediment Control (2 items)
- Licensing (2 items)
- Liens (1 items)
- Sports Fields (5 items)
The Residential Contractor Exam also has 90 questions. The time limit is 210 minutes. The topics covered include:
- Site Work, Footings, and Foundations (12 items)
- Concrete and Concrete Reinforcement (10 items)
- Masonry (7 items)
- Carpentry (11 items)
- Associated Construction Trades, including Energy Conservation and Drywall (8 items)
- Roofing (6 items)
- Estimating, Plan Reading and General Residential Code Requirements (16 items)
- OSHA Safety (4 items)
- Licensing and Business Law (10 items)
- Special Construction Zones (wind and coastal)
- Erosion and Sediment Control (6 items)
Exam preparation courses prepare you to take and pass the NASCLA or North Carolina Building or Residential Contractor exams. Our North Carolina NASCLA exam prep courses and North Carolina Contractor exam prep courses offer exam simulators and exam-ready tabbed and highlighted approved books, as well as tips and tricks for taking and passing whichever exam you decide to take.
Subcontractors Licenses and Exams
North Carolina offers several subcontractors licenses for those that do not wish to get a full Building or Residential Contractors License. You are required to take and pass an exam related to the specialty.
Subcontractor exams have a 120-minute time limit; however, the number of questions varies. All exams require a passing score of 70%.
Subcontractor exams include:
- Asbestos (60 items)
- Boring and Tunneling (60 items)
- Concrete (50 items)
- Grading and Excavating (45 items)
- Insulation (40 items)
- Interior Construction (50 items)
- Marine Construction (50 items)
- Masonry Construction (50 items)
- Metal Erection (65 questions with a 150-minute time limit)
- Railroad Construction (50 items)
- Roofing (60 items)
- Swimming Pools (60 items)
- Wind Turbine (40 items)
For more information on these exams, including what each exam covers, check out the PSI Services test booklet.
Applying for Your General Contractor License in North Carolina
Your first step is to submit your license application on the NCLBGC application page. After this, gather the required documents to meet the license requirements so you can submit your application.
These documents are:
- Contact information
- Business name (if applicable)
- Licensing fee
- Financial statements
- Social Security number
- Disclosure of any criminal convictions along with copies of court records (if applicable)
- Type of license and classifications
You also need to submit three character references. These need to include the name, address, phone number, and email address of the individual submitting the reference, along with the date and details regarding the reference’s experience with the applicant. The references cannot be dated more than 12 months prior to submission.
Get help navigating the complexities of applying for your license with our Contractor Licensing Start-Up Consultation! In just 30 minutes, we’ll guide you through all the steps of applying for a license and eliminate any confusion you may have.
License Renewal and Continuing Education
Licenses are renewed annually by December 31. A minimum of eight (8) hours of continuing education (CE) are required to renew your license. Two hours must be Board-approved mandatory courses. The remaining six hours can be electives.
The Contractor Training Center offers an 8-hour North Carolina contractor CE package that includes mandatory and elective courses.
Elective CE courses can be livestreamed or online courses. Mandatory courses must be either taken live or livestreamed. North Carolina allows you to carry over four (4) hours of CE into the following year.
Ready? Reach Out to the Contractor Training Center
Becoming a general contractor in North Carolina paves the way to a highly rewarding career. It allows you to differentiate your services, build credibility, and earn the trust of your customers while legally bidding on lucrative construction projects.
At Contractor Training Center, we specialize in helping North Carolina contractors ace their exams and secure state licensing on the first try. We offer both NASCLA and North Carolina exam prep courses and license application assistance to help you breeze through the application process.
Give us a call today at (888) 585-7350 to start your contracting career!