When North Carolina requires a general contractor license
Under G.S. 87-1, you are a general contractor if you bid on, build, or superintend or manage the construction of any building, highway, public utility, grading or other improvement where the cost of the undertaking is $40,000 or more. Erecting a North Carolina labeled modular building also counts, whatever the cost.
The $40,000 figure is the total project cost, not your profit or your labor share.
There are exceptions. The main one for homeowners: a person who builds on their own land for their own family's occupancy does not need a license, as long as they follow G.S. 87-14. If the owner does not live in the building for at least 12 months after completion, the law presumes it was not built for their own occupancy. Furnishing or erecting industrial equipment, power plant equipment, radial brick chimneys and monuments is also exempt.
Building permits back this up. For work costing $40,000 or more, the local inspections department will not issue a permit unless the applicant shows a valid NC general contractor license or qualifies for an exemption.
License limitations: limited, intermediate and unlimited
Every license carries a limitation that caps the value of any single project you can take. The value excludes the cost of land and any ancillary costs to improve the land. Each tier also has a financial requirement under 21 NCAC 12A .0204. Working capital means current assets minus current liabilities.
Instead of showing working capital or net worth, you may post a continuous surety bond with the State of North Carolina as obligee. The surety must be authorized in NC and rated A- or better by A.M. Best. You must keep the bond in force for as long as you rely on it, and send proof with every annual renewal.
Intermediate and unlimited applicants must back up working capital with an agreed-upon procedures (AUP) report on the board's form or an audited financial statement, prepared by a CPA or an independent accountant in public practice. Limited applicants may report their finances in the online application, unless the applicant, an owner, principal or qualifier has been in bankruptcy within the past five years. In that case an AUP report or audited statement is required. You can move up a tier later by applying for an increase in limitation.
| Limitation | Single project limit | Financial requirement | Bond in lieu | Application fee |
|---|---|---|---|---|
| Limited | Up to $750,000 | $17,000 working capital or $80,000 net worth | $175,000 | $75 |
| Intermediate | Up to $1,500,000 | $75,000 working capital (AUP report or audit) | $500,000 | $100 |
| Unlimited | No limit | $150,000 working capital (AUP report or audit) | $1,000,000 | $125 |
License classifications
Your license also lists one or more classifications, which control the type of work you can do. They are defined in G.S. 87-10(b) and 21 NCAC 12A .0202. Under 21 NCAC 12A .0403, you take a separate exam for each classification you want.
- Building: all building construction and demolition, including commercial, industrial, institutional and all residential buildings. It also covers parking decks, site work, paving of parking lots and driveways, storm drainage, retaining walls, athletic fields and solar panel installation, plus work under several specialty classifications.
- Residential: construction and demolition of homes that must conform to the NC Residential Code, with related site work, driveways, sidewalks and water and wastewater systems. It also covers solar panels on those homes.
- Highway: grading, paving, bridges, culverts, curbs, gutters, storm drainage, guardrails and airport runways, plus related specialty work.
- Public utilities: water and sewer lines, water and wastewater treatment, electrical lines ahead of the point of delivery, communications distribution, and fuel distribution. The board can license you for only the subclassifications you qualify for.
- Specialty: work needing a specialized trade, such as roofing, masonry, concrete, insulation, interior construction, metal erection, swimming pools, asbestos, marine construction, boring and tunneling, and railroad construction. It does not include work licensed by another state board, such as electrical or plumbing.
- Unclassified: includes all of the above classifications.
See where you stand in 10 minutes
Take the free NC Building practice test. 15 questions, every answer explained.
The qualifier rule
In North Carolina the license belongs to the business (or the individual), but it is earned through a qualifier. The qualifier is the person who passes the exam. For a company, that must be a responsible managing officer, member or employee.
Under 21 NCAC 12A .0205, "responsible managing" means working for the applicant at least 20 hours a week or a majority of the hours the business operates, whichever is less. A qualifier who is not an owner, officer or partner must be a W-2 employee, not an independent contractor. One person can qualify no more than two licenses.
If your qualifier leaves, notify the board in writing within 10 days. The license stays in effect for 90 days, but you cannot bid on or take new contracts during that time. After 90 days without a new qualifier, the license becomes invalid. A qualifier's exam credentials archive if they do not qualify an active license for four consecutive years, and they would have to pass the exam again.
The exams: trade, business and law, and the NASCLA option
PSI Services runs the NCLBGC exams on computer at PSI test centers. The passing score is 70 on every exam (21 NCAC 12A .0404). The exams are open book: you bring the approved references listed in the PSI candidate information bulletin and may highlight, underline and tab them. A silent, non-programmable calculator is allowed.
Each classification exam tests construction knowledge for that trade plus North Carolina licensing, lien and business law topics. The board's laws and rules are tested for every applicant under 21 NCAC 12A .0402. Some candidates also take the separate Business and Law exam. Your eligibility letter will list the exams you are approved to take.
NASCLA path: if you passed the NASCLA Accredited Examination for Commercial General Building Contractors, NASCLA lists North Carolina as accepting it for the building and residential classifications, if you passed it within the past 2 years. Under 21 NCAC 12A .0303, applicants using a NASCLA exam or another state's exam must still pass North Carolina's law, rule and building code exam before licensure. North Carolina also has exam waiver agreements with several states, including Virginia and Arkansas (announced in 2025). These waive the trade exam only, not the application, financial or Business and Law requirements.
Code editions matter. The bulletin updated November 19, 2025 still lists the 2018 NC State Building Code volumes, because the 2024 NC codes were delayed by 2025 legislation. Check the board's current candidate information and the bulletin before you buy books.
| Exam (PSI) | Questions | Time | Passing score |
|---|---|---|---|
| Building contractor | 90 | 200 minutes | 70% |
| Residential contractor | 90 | 210 minutes | 70% |
| Highway contractor | 90 | 265 minutes | 70% |
| Public utilities contractor | 100 | 240 minutes | 70% |
| Business and Law | 40 | 90 minutes | 70% |
How to study for the NC exams
The Business and Law exam leans hard on licensing: 21 of its 40 questions cover licensing, 8 cover liens and bonds, 5 cover NC 811 one-call rules, 3 cover subcontractor pay requirements and 3 cover erosion and sedimentation control. A business and law practice test is a good way to check your speed with these topics. The main references are the NASCLA Contractor's Guide to Business, Law and Project Management, North Carolina General Contractors Edition (10th Edition), and the board's Laws and Regulations book.
On the residential exam, the biggest areas are estimating, plan reading and residential code (16 questions), site work, footings and foundations (12), carpentry (11) and concrete (10). On the building exam, estimating, plan reading and building code (14), concrete (13) and metals (12) lead the outline.
Because the exams are open book, speed in finding answers matters as much as knowing them. Mark key sections in your books and practice under time limits. Timed North Carolina residential contractor practice tests and North Carolina building contractor practice tests help you learn where answers live in the references before test day.
Step by step: applying for your NC license
The board takes new applications online through NCCLiC. Have your financial documents ready before you start.
- Choose your limitation based on the largest single project you expect to take and the working capital, net worth or bond you can show.
- Choose your classification or classifications, and name the qualifier who will take each exam.
- Prepare financial proof: the online financial information for a limited license, or an AUP report or audited statement for intermediate and unlimited. Or get a surety bond for your tier.
- If you are a corporation or LLC, make sure it is in good standing with the NC Secretary of State. Out-of-state entities need a certificate of authority before the board can issue a license.
- Submit the application on NCCLiC with the nonrefundable fee: $75 limited, $100 intermediate or $125 unlimited. Disclose any criminal convictions and discipline by other licensing agencies, with supporting court records.
- Complete the criminal background check through the board's vendor. The qualifier and, depending on the business type, the sole proprietor, the president, LLC managers and members, or all partners must submit to it. You pay the vendor directly.
- Watch for your exam eligibility letter by email. It is valid for 120 days and allows one exam attempt in that window.
- Schedule with PSI online or at (855) 746-8173 and pay $79 per exam. Cancel at least 2 days ahead or you lose the fee.
- Pass each required exam with a 70 or better. If you fail, the board emails a revised authorization with your scores. You may retake as many times as you need within 12 months while your application information stays valid.
- After you pass and the board completes its review, it issues your license. Put your license number on bids and contracts as the board's rules require.
Costs at a glance (2026)
The board's fee rule, 21 NCAC 12A .0304, sets these amounts. All board fees are nonrefundable.
- Application: $75 limited, $100 intermediate, $125 unlimited.
- Increase in limitation: $100 to move up to intermediate, $125 to move up to unlimited.
- PSI exam: $79 per exam, per attempt.
- Criminal background check: paid directly to the board's vendor; the cost varies.
- Annual renewal: G.S. 87-10(e) caps it at $75 limited, $100 intermediate and $125 unlimited.
- Late renewal: $10 for each month or part of a month after January 1.
- Other costs to plan for: reference books, an AUP report or audit for intermediate and unlimited, and a surety bond if you choose that route.
Renewal and continuing education
A North Carolina license expires on January 1 each year, so renew by December 31. If you have not renewed within 60 days after expiration, the license becomes invalid and you cannot contract on $40,000 or more projects. After four years invalid, the license is archived and you must apply as a new applicant, exams included.
Each renewal includes an attestation that you still meet your tier's financial requirement, proof of any surety bond, and proof of continuing education where required.
Under G.S. 87-10.2, at least one qualifier for each building, residential or unclassified license must complete 8 hours of board-approved CE every calendar year. Two hours are the board's mandatory course and six are electives. You may carry forward up to four elective hours to the next year. Highway, public utilities and specialty licenses are not covered by this CE requirement.
CE runs January 1 to November 30. There is a 90-day grace period after November 30. If your qualifier still has not finished by the end of the grace period, the license becomes invalid until CE and all other requirements are met. Approved online courses count. If you do not plan to work, you can ask the board to place the license on inactive status each year, but you still pay the renewal fee. Returning to active status takes 8 hours of CE within two years of going inactive, or 16 hours after that, including the mandatory course.
Frequently asked questions
What is the dollar limit for work without a license in North Carolina?
You need a general contractor license when the total cost of the project is $40,000 or more. Below that amount, an NCLBGC license is not required, though other trade licenses such as electrical or plumbing may still apply.
Does North Carolina require construction experience to get a general contractor license?
The statute and board rules do not set a minimum years-of-experience requirement. You must be 18 or older, show good moral character and financial responsibility, pass a background check, and have a qualifier pass the exam.
Can I take the NASCLA exam instead of the NC building exam?
NASCLA lists North Carolina as accepting its commercial exam for the building and residential classifications if you passed it within the past 2 years. You must still pass North Carolina's law, rule and building code exam before you are licensed.
Are the North Carolina contractor exams open book?
Yes. The PSI bulletin lists the references you may bring into the test center. You need a 70 to pass every exam, so knowing where to find answers quickly is key.
How long do I have to pass the exam after I apply?
Each eligibility letter is valid for 120 days and covers one attempt. You may retake as often as you need within 12 months as long as the information in your application stays valid.
Can my business use someone else's license?
No. Lending or borrowing a license is a violation, and the board can suspend or revoke the license of a contractor who lets an unlicensed person or company use it. Your qualifier must actually work in your business at least 20 hours a week or a majority of its hours.
How many CE hours do NC general contractors need?
Qualifiers for building, residential and unclassified licenses need 8 hours each year: the 2-hour mandatory course and 6 elective hours, finished by November 30. Highway, public utilities and specialty licenses are not covered by this requirement.
Official sources
- NC Licensing Board for General Contractors
- NCLBGC: Classifications and limitations
- NCLBGC: License applicants
- NCLBGC: 2026 Laws and Regulations Applicable to General Contracting
- N.C. General Statute 87-1
- N.C. General Statute 87-10
- N.C. General Statute 87-10.2 (Continuing Education)
- PSI: NC General Contractors Candidate Information Bulletin
- NASCLA: North Carolina participating agency
- NCLBGC Board Buzz, Spring 2025 (exam waivers, code delay)
- NCCLiC online application portal
Practice tests for this license
North Carolina Building Contractor Exam
North Carolina's commercial Building classification exam.
North Carolina Residential Contractor Exam
For builders of homes and residential units under the North Carolina Residential Code.
NASCLA Commercial General Building Exam
One commercial trade exam accepted by licensing boards in 17 states and the U.S. Virgin Islands, including Alabama, Arizona, Arkansas, Georgia, Louisiana, Mississippi, Nevada, North Carolina, Oregon, South Carolina, Tennessee, Utah, Virginia and West Virginia.
Contractor Business & Law Exam
The business, tax, labor and lien-law exam almost every state requires alongside the trade exam.
This guide is general information, checked October 2026, not legal advice. Licensing rules change; confirm with the licensing board before you apply.
