North Carolina contractor license requirements

Licenses and registrations

General contractor license - Residential classification

Contractors who build, remodel or manage construction of residences that must conform to the North Carolina Residential Code.

• When it applies: Project cost of forty thousand dollars ($40,000) or more (G.S. 87-1). Project cost excludes the cost of land and ancillary improvements to the land.
• Good to know: Issued with a limited, intermediate or unlimited limitation.

General contractor license - Building classification

Contractors who build private, public, commercial, industrial and residential buildings of all types.

• When it applies: Project cost of $40,000 or more.
• Good to know: Board accepts the NASCLA exam for the Building classification.

General contractor license - Specialty classifications

Contractors in specialized trades or crafts (excluding work licensed by other boards, such as electrical, plumbing and heating).

• When it applies: Project cost of $40,000 or more.
• Good to know: Other classifications are Highway and Public Utilities.

License limitations

Every licensee holds one limitation.

• When it applies: Limited: any single project up to $750,000. Intermediate: any single project up to $1,500,000. Unlimited: no limit on the value of any single project. Values exclude the cost of land and ancillary land improvements (G.S. 87-10(a1)).
• Good to know: Each limitation has its own minimum financial requirement.

What you need to qualify

• Exams: The applicant must name a qualifier who has passed a Board-approved exam for the classification. The exam covers plan and specification reading, the State Building Code, estimating, construction, ethics, contractor duties, North Carolina contractor and lien law, and the Sedimentation Pollution Control Act. Exams are scheduled with PSI.
• Insurance: Permit applicants for work costing $40,000 or more must show proof of workers' compensation insurance under Chapter 97 (G.S. 87-14).
• Bond: A surety bond can be used in place of the working capital or net worth showing (Board rule 21 NCAC 12 .0204). Current bond amounts were not confirmed.
• Financial: Applicants must give evidence of financial responsibility as determined by the Board, based on the license limitation. Proof can be an Agreed-Upon Procedures Report, an audited financial statement, or a surety bond. Working capital = total current assets minus total current liabilities.
• Also required: A criminal background check is required for applicants (G.S. 87-10). Building permit applicants for $40,000+ work must also give the owner's designated lien agent information in most cases.

Fees, renewal and continuing education

• Fees: Examination fee not to exceed $100.00. Application fee not to exceed $125.00 (unlimited), $100.00 (intermediate) or $75.00 (limited), plus background check costs. Fees are nonrefundable. Renewal fees are capped at the same amounts, with a $10.00 late payment for each month or part after January (G.S. 87-10).
• Renewal: Annual. A license expires on January 1 following its issuance or renewal and becomes invalid 60 days later unless renewed.
• Continuing education: For building, residential and unclassified licenses, at least one qualifier must complete 8 hours each year (January 1 to November 30), including a 2-hour Board-approved mandatory course. Up to four elective hours can carry forward. There is a 90-day grace period after November 30 (G.S. 87-10.2).

Contracts and homeowner protections

Homeowners Recovery Fund: when a general contractor gets a permit to build or alter a single-family dwelling, the local inspector collects a $10.00 fee per dwelling unit for the Fund (G.S. 87-15.6). The Fund is a last resort for homeowners who have lost money to a licensed general contractor and have exhausted other legal remedies.

Electrical, plumbing and HVAC work

Electrical contractors are licensed by the State Board of Examiners of Electrical Contractors (G.S. 87-43). Plumbing, heating (HVAC) and fire sprinkler contractors are licensed by the State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors.

City and county rules

Local governments do not issue general contractor licenses, but city and county inspection departments must get proof of a state license (or an owner-builder affidavit) before issuing a permit for work costing $40,000 or more (G.S. 87-14).

Working without a license

Contracting or bidding without a required license is a Class 2 misdemeanor (G.S. 87-13). The Board may seek an injunction in Superior Court; its FAQ says it has no specific authority to impose civil fines.

What to confirm with the state

We couldn't confirm these on an official page when we checked. Ask the licensing office before you rely on them:

• Current working capital, net worth and surety bond amounts for each limitation. The 2018 version of 21 NCAC 12 .0204 listed $17,000 working capital or $80,000 net worth (limited), $75,000 working capital (intermediate), $150,000 working capital (unlimited), or bonds of $350,000 / $1,000,000 / $2,000,000, but these may have changed after the 2023 limit increases.
• The Board's FAQ pages still state a $30,000 threshold and $500,000 / $1,000,000 limits; the current statute text (G.S. 87-1, 87-10) says $40,000 and $750,000 / $1,500,000. The statute was used.
• Maximum payout per claim from the Homeowners Recovery Fund.
• Any experience requirement for qualifiers.
• Any North Carolina rule requiring written residential contracts or limiting deposits.

Sources

1. N.C. Gen. Stat. 87-1 - General contractor defined
2. N.C. Gen. Stat. 87-10 - Application, classifications, limitations, fees
3. N.C. Gen. Stat. 87-10.2 - Continuing education
4. N.C. Gen. Stat. 87-13 - Penalty
5. N.C. Gen. Stat. 87-14 - Permit applicants must show license
6. N.C. Gen. Stat. 87-15.6 - Homeowners Recovery Fund
7. N.C. Gen. Stat. 87-43 - Electrical contractors license required
8. FAQ for Contractors - NCLBGC
9. FAQ for Consumers - NCLBGC
10. Trade licensing requirements (2019, PDF) - NC Department of Administration