Licensing Guides
State Contractor License: How to Become a General Contractor in North Carolina
Contractor, NC
Table of Contents
Why Do You Need a Contractor License in North Carolina?
How Can You Get a Contractor License in North Carolina?
Types of Contractor Licenses in North Carolina
What Are the Requirements of a North Carolina Contractor License?
How Long Does It Take to Get a Contractor License in North Carolina?
How Much Does It Cost to Get a Contractor License in North Carolina?
North Carolina Contractor License Training Programs and Schools
Does North Carolina Reciprocate Contractor Licenses?
Do I Need to Renew my Contractor License in North Carolina?
Are There Any Penalties for Contracting Without a License in North Carolina?
We all need a place to live and work, and those buildings require upkeep and repair. They’re often the biggest investments we make in our lives, and keeping them in good condition is essential. We count on professionals to know how to fix damage to or wear and tear on our homes and businesses. General contractors are typically the experts we rely on to help us with these repairs, and we need these men and women to know what they’re doing.
Many states require contractors to be licensed. Others simply require solid insurance to back up the essential work they perform. There are 520,900 construction managers and 1,599,800 construction laborers and helpers nationwide, according to the Bureau of Labor Statistics (BLS). North Carolina employs 21,520 managers and 31,550 laborers and helpers. The national number for managers is projected to grow 9% from 2023 to 2033, and 8% for laborers and helpers. In North Carolina, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate for laborers and managers is higher than the national number at 12%. If you’re thinking about starting a contracting business or you want a job in the field, you need to know the requirements in your state or local jurisdiction. This guide will help you determine what you need to work as a licensed contractor.
Why Do You Need a Contractor License in North Carolina?
A General Contractor license is necessary for any contractor conducting construction activity of $40,000 or more in value. Licenses are issued through the North Carolina Licensing Board for General Contractors (NCLBGC) in Raleigh.
According to the NCLBGC, “Licenses are broken down into limitation and classification. Limitation determines the dollar size of the projects that can be undertaken with the license. Classification determines the type of work that can be performed using the license.”
North Carolina contractor license classifications include:
Building Contractor: Covers all building construction and demolition activity, including commercial, industrial, institutional, and all residential building construction.
Residential Contractor: Covers all construction and demolition activity pertaining to the construction of residential units that are required to conform to the Residential Building Code.
Specialty Contractor: Several specialty classifications apply, including roofing, masonry construction work, driveways, swimming pools, excavating, and asbestos.
North Carolina contractor license limitations include:
Limited License: Enables the contractor to work on projects valued up to $750,000.
Intermediate License: Enables the contractor to work on projects valued up to $1,500,000.
Unlimited License: Contractor faces no monetary restrictions.
The bottom line is any contractor performing $40,000 or more of work in North Carolina needs to be licensed. The Building Contractor classification allows the holder to legally perform commercial or residential contracting work whether that be initial construction, service, or replacement to properties, while the Residential Contractor applies only to residential projects.
How Can You Get a Contractor License in North Carolina?
There is a process for getting your license. It is all spelled out on the state website. The process for each classification is roughly the same.
You must be at least 18 years of age. You must have either a Social Security number or an individual taxpayer identification number. Applicants must possess good moral character as determined by the Board.
All applicants need to submit the Contractor license application at nclbgc.org and pay the application fee.
You must also meet specific financial requirements, including submitting an audited financial statement prepared by a CPA. A surety bond will suffice if you can’t demonstrate proof of financial responsibility.
North Carolina requires at least one responsible employee to pass a Business and Law and Trade exam administered by PSI Exams based on their classification. This person is referred to as the “qualifier.” In some instances, the Board will substitute passing the NASCLA exam in place of the Trade exam.
Types of Contractor Licenses in North Carolina
There are three classifications for General Contractors in North Carolina.
The Building Contractor license allows the holder to legally perform all building construction and demolition activity, including commercial, industrial, institutional, and all residential building construction.
The Residential Contractor license allows the holder to legally perform all construction and demolition activity pertaining to the construction of residential units that are required to conform to the Residential Building Code.
The Specialty Contractor license allows the holder to legally perform a specialty classification, including roofing, masonry work, driveways, swimming pools, excavating, and asbestos.
North Carolina also has three license limitations.
Limited License: Enables the contractor to work on projects valued up to $750,000.
Intermediate License: Enables the contractor to work on projects valued up to $1,500,000.
Unlimited License: Contractor faces no monetary restrictions.
Getting a general contractor license
There are three main classifications for a general contractor license in North Carolina. They are the Building Contractor, Residential Contractor, and Specialty Contractor licenses. Additionally, North Carolina offers a Highway Contractor and Public Utilities Contractor license.
The Building Contractor license covers all building construction and demolition activity, including commercial, industrial, institutional, and all residential building construction. The Residential Contractor license permits individuals to only work on residential structures. Specialty Contractors can work on both residential and commercial properties.
APPLY FOR LICENSE: All applicants must submit the Contractor license application at nclbgc.org. To begin the process, you need to set up an online account with the NCLBGC.
PAY APPLICATION FEE: The application fee depends on the type of license limitation you apply for. The application fee is $125 for an Unlimited license (no restriction on project value), $100 for an Intermediate license (project values up to $1,500,000), and $75 for a Limited license (project values up to $750,000).
PROVIDE EVIDENCE OF FINANCIAL RESPONSIBILITY OR A CONTRACTOR BOND: Limited license holders must have current assets that exceed the total current liabilities by at least $17,000 or have a total net worth of at least $80,000. If unable to meet the financial responsibility, you can provide a $175,000 surety bond.
Intermediate license holders must have current assets that exceed the total current liabilities by at least $75,000 as reflected in an audited financial statement prepared by a certified public accountant. If unable to meet the financial responsibility, you can provide a $500,000 surety bond.
Unlimited license holders must have current assets that exceed the total current liabilities by at least $150,000 as reflected in an audited financial statement prepared by a certified public accountant. If unable to meet the financial responsibility, you can provide a $1,000,000 surety bond.
TAKE LICENSING EXAM: The contracting business’s qualified individual must pass the Business and Law exam and relevant Trade exam. The Business and Law Exam is open book. The Trade exam for Building Contractors is the NC Building Contractor exam. The Trade exam for Residential Contractors is the NC Residential Contractor exam. Specialty Contractors take a trade-specific exam. North Carolina contractor license exams are administered by PSI Exams. After successfully completing the license application, the qualifier will receive an Eligibility Letter from the NC Licensing Board for General Contractors. The qualifier must then contact PSI to schedule the exam and pay the $79 fee for each exam. View the full details on licensing exams via the Candidate Information Bulletin.
Getting a specialty license
The State of North Carolina offers a Specialty Contractor license, which “shall include those whose operations as such are the performance of construction work requiring special skill and involving the use of specialized building trades or crafts,” according to the NCLBGC. Specialty licenses are required for specific trade work including electrical, roofing, wastewater and sewers, asbestos, and more. The license requirements follow the same process as the Residential and Building Contractor License, except the qualifier must pass an exam relevant to the specific specialization.
There is a complete guide online that answers all of the questions about this process.
You can also consult our guides to getting your HVAC license, plumbing license, or electrical license in North Carolina.
What Are the Requirements of a North Carolina Contractor License?
The requirements for licensure as a contractor in North Carolina are all intended to demonstrate that an individual who will be serving the public is properly prepared to do the job right. To that end, there are age, knowledge, and financial prerequisites.
You must be at least 18 years of age.
You must have either a Social Security number or an individual taxpayer identification number.
Complete the Contractor license application form.
Pay the application fee: $125 for an Unlimited license, $100 for an Intermediate license, and $75 for a Limited license.
Submit an audited financial statement prepared by a CPA showing financial responsibility for your license classification, or submit proof of a surety bond.
Pass the Business and Law exam and Trade exam and pay all exam fees.
How Long Does It Take to Get a Contractor License in North Carolina
Since North Carolina doesn’t have any experience requirements for licensure, it doesn’t take long to acquire a license. Initial processing of a license application takes about two weeks. Once exams are passed, the application goes on a list for Board approval. The Board meets twice a month for license approvals. This can take about two to three weeks.
What Business Owners Need to Know
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How Much Does It Cost to Get a Contractor License in North Carolina?
Fees are based on the license limitation. The application fee for the Limited license is $75, $100 for the Intermediate license, and $125 for an Unlimited license. You’ll also have to pay a $79 exam fee for each required exam.
Total cost for a Limited license: $75 + $79 +79 = $233
Total cost for an Intermediate license: $100 + $79 +79 = $258
Total cost for an Unlimited license: $125 + $79 +79 = $283
North Carolina Contractor License Training Programs and Schools
There are no specific educational or course requirements to get a North Carolina contractor license. However, North Carolina offers training programs throughout the state that can help you prepare for a career in construction. For example, ApprenticeshipNC maintains a database of apprenticeships you can search for by trade or county. The good news with an internship is you’ll earn income while learning new skills, rather than accumulating debt. You can also gain experience by attending a community college or trade school.
If you choose to start your career path at a college or university, you can pursue a degree in construction management, construction engineering, or similar field. There are many higher education options throughout the Tarheel State that offer these types of programs. Each of the following schools offers a Construction Management Bachelor of Science or Associate of Applied Science degree.
Does North Carolina Reciprocate Contractor Licenses?
While the State Board doesn’t offer full reciprocity with any other state, they do have exam-waiver agreements with:
South Carolina
Tennessee
Louisiana
Georgia
Mississippi
Alabama
Florida
Applicants will need to complete a new license application, and the board they are licensed with in the other state must complete an examination waiver form included in the application. This only waives the Trade exam. All new applicants will still need to pass the North Carolina Business and Law exam.
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Do I Need to Renew my Contractor License in North Carolina?
To keep your state-issued active license current, licenses must be renewed annually by Dec. 31. The fee structure is the same as the original application:
$125 for an Unlimited license (no restriction on project value)
$100 for an Intermediate license (project values up to $1,500,000)
$75 for a Limited license (project values up to $750,000)
The North Carolina Licensing Board for General Contractor issues and renews all licenses in the state. Note, you must complete all required continuing education before applying for renewal.
Are There Any Penalties for Contracting Without a License in North Carolina?
Yes. There are fines, criminal charges, and even possible jail time for contracting on a construction project without a license. In North Carolina, contracting without a license is considered a Class 2 misdemeanor, resulting in fines, potential jail time, and the possibility of an injunction barring the unlicensed contractor from further work.
National Certifications
Other certifications can help you demonstrate your proficiency to potential employers and clients. There are many professional organizations that offer certification. These certifications are not required but can add to your marketability and therefore increase your opportunity to make more money.
Some of the top construction certifications are:
Occupational Safety and Health Administration (OSHA) Safety Certificate
Construction Management Association of America Certified Construction Manager (CCM)
National Association of Safety Professionals (NASP) Certified Safety Manager (CSM) certification
National Center for Construction Education & Research (NCCER)
Continuing Education
License renewal requires 8 hours of continuing education (CE) each year. The continuing education must include a mandatory 2-hour course produced by the Board with information about changes in the laws and rules and other content applicable to general contracting.
Note: The CE term begins Jan. 1 and ends on Nov. 30 annually. Classes will not be offered during the month of December.
Resources
You can stay up to date on contracting industry news several ways:
Check top blogs, including ServiceTitan’s blog.
Read about the latest industry trends, and discover ideas on how to grow your business.
Listen to top podcasts like ServiceTitan’s “Toolbox for the Trades” podcast.
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