If you are a contractor performing a project in North Carolina for a value of $40,000 or more, you are required to hold a North Carolina contractor’s license. Becoming a licensed general contractor in North Carolina can be achieved through the testing and completing the application process. Obtaining a contractor license in North Carolina allows you to perform work above the $40,000 threshold, demonstrates to clients that you are a professional, and opens new opportunities. Follow along as we discuss some of the steps to take when testing and applying for a North Carolina contractor’s license.
The below list can be helpful to determine what to complete on the testing and application process to obtain a North Carolina contractor’s license. Be sure to also visit the North Carolina Licensing Board for General Contractors site to review all requirements. The NCLBGC is helpful and provides instructions to assist you in your application process. This is not only where you will be submitting your application, but also a resource to answer any questions you may have during the process. With the help of our guide and the NCLBGC, you will have a good understanding of what the requirements are to getting your North Carolina contractor’s license.
- Be at least 18 years old
- Submit your application
- Provide three (3) reference letters
- Submit proof of net worth or assets to liabilities report
- Provide proof of bond if you do not meet the net worth/assets to liabilities limit
- Pay the application fee
- Pass the trades exam
- Pass the North Carolina Business and Law Exam
What is the NASCLA Exam
It is important to understand how the difference between the state contractor’s exam and the NASCLA exam. Both exams are acceptable to obtain your North Carolina contractor’s license. We recommend taking the NASCLA exam for your North Carolina contractor’s license due to the versatility. It will also give you the ability to get your Building Contractor’s license. The NASCLA exam is a widely recognized trades exam that 16 states administer and accept. This means that if you move or expand your business to one of the states that accepts or administers the NASCLA, you will not need to retake a trades exam.
What is the Building Contractor’s License in NC?
The Building Contractor’s license in North Carolina covers all building construction such as commercial, residential, industrial, and institutional. It includes parking decks; all site work, grading and paving of parking lots, driveways, sidewalks, and gutters, storm drainage, retaining or screen walls, and hardware and accessory structures, indoor and outdoor recreational facilities including natural or artificial surface athletic fields, running tracks, bleachers, and seating. It also covers work done under the specialty classifications of S(Concrete Construction), S(Insulation), S(Interior Construction), S(Marine Construction), S(Masonry Construction), S(Roofing), S(Metal Erection), S(Swimming Pools), S(Asbestos), S(Wind Turbine). The Building Contractor’s License is a great choice for a North Carolina contractor’s license. The NASCLA exam is your first step in getting there.
Know Your Desired North Carolina Contractor’s License Limitation
The license limitation is the project size that you are capable of performing after getting your North Carolina contractor’s license. In North Carolina there are three (3) different limitations. The license limitations are Limited License, Intermediate License, and Unlimited License. A Limited License allows you to undertake individual projects up to $750,000. An Intermediate License allows you to undertake projects up to $1,500,000. The Unlimited License has no dollar limit on the size of the projects that can be undertaken.
What is a Limited Contractor’s License in NC?
For a Limited North Carolina Contractor’s License you must have current assets that exceed current liabilities by at least seventeen-thousand dollars ($17,000), or have a total net worth of at least eighty thousand dollars ($80,000). You may also choose to provide a one-hundred-and-seventy-five-thousand-dollar ($175,000) surety bond in lieu of the working capital.
What is an Intermediate Contractor’s License in NC?
For an Intermediate North Carolina Contractor’s License, you must have current assets that exceed current liabilities by at least seventy-five thousand dollars ($75,000). This will be reflected in an agreed-upon procedures report on a form provided by the Board, or an audited financial statement prepared by a certified public accountant. You may also use an independent accountant who engages in the public practice of accountancy. You may also choose to provide a five-hundred-thousand-dollar ($500,000) surety bond in lieu of demonstrating the working capital.
What is an Unlimited Contractor’s License in NC?
To obtain an Unlimited North Carolina Contractor’s License you must have current assets that exceed current liabilities by one-hundred and fifty-thousand dollars ($150,000), as reflected in an agreed-upon procedures report on a form provided by the Board, or an audited financial statement prepared by a certified public accountant, or an independent accountant who is engaged in the public practice of accountancy.
Take a NASCLA Exam Prep Course
As mentioned at the beginning of the article, the NASCLA exam is the way to go in North Carolina. Getting your Builder’s North Carolina Contractor’s License creates numerous possibilities. We host passthenasclaexam.com, and highly recommend it for studying for the NASCLA exam. The NASCLA exam is an open book exam with 23 books. It is 5 ½ hours long and has 125 questions. Only 115 of the questions count as 10 of the questions are potential test questions for future exams. Studying 23 books and documents on your own can be exhausting and difficult to understand information in a time efficient manner. Having a course that provides tutorial videos, study guides, quizzes, tips, and practice exams will give you the tools you need to pass on the first attempt.
Apply for The Business and Law Exam
The approval process for the NASCLA exam is 7 business days. You can complete the application for this exam on the NASCLA website. As mentioned, there is a second exam to take after passing the NASCLA exam. This is the Business and Law Exam. This exam will test your knowledge on the Contractor’s Guide to Business, Law, and Project Management, North Carolina 811 Excavation Guide, and two (2) sedimentation control documents.
The examination fee is $79. The North Carolina Business and Law Exam is 40 questions, 90 minutes, and requires a 70% to pass. According to the candidate information bulletin, there are 3 questions on erosion and sedimentation control, 21 questions on licensing, 3 questions on subcontractor’s pay requirements, 8 questions on liens and bonds, and 5 questions on the 811 guide. PSI Exams also has a helpful candidate information bulletin to help you better understand the background information to the exam.
You will need to fill out your application with the NCLBGC before being accepted to take the Business and Law Exam. We recommend completing this application during your timeframe of studying for the NASCLA exam. It can take some time for your approval to get back to you. Be sure to allow a month or two to get your approved application back. Be sure to complete the application on behalf of the entity that you want to do business in. This means that if you are planning to operate under an LLC or corporation, you will need to create it ahead of time of filling out your application.
North Carolina Contractor’s License Conclusion
We hope this guide helped you on your journey of how to get your North Carolina contractor’s license. A North Carolina contractor’s license can open new opportunities. It demonstrates professionalism to clients and ensures that you are following state rules and regulations. The testing and application procedure can seem like a daunting task at first. However, taking the necessary steps one at a time, and having a course to assist you in your test taking can get you there. The PSI bulletins are a fantastic resource when taking the NASCLA exam and the Business and Law Exam. Good luck on achieving your North Carolina contractor’s license!