North Carolina General Contractor Exam — All Questions

Which body licenses general contractors in North Carolina?

• a.The U.S. Department of Housing and Urban Development, acting through its state field office
• b.The North Carolina Licensing Board for General Contractors (NCLBGC)✓
• c.The North Carolina Real Estate Commission, under its authority over property transactions
• d.The register of deeds in the county where the contractor's principal office is located

General contractors in North Carolina are licensed by the North Carolina Licensing Board for General Contractors (NCLBGC). Its authority comes from Chapter 87, Article 1 of the North Carolina General Statutes.

In North Carolina, a general contractor license is required when the cost of the undertaking reaches what threshold?

• a.$40,000 or more✓
• b.$100,000 or more
• c.Any amount, no matter how small
• d.$1,000 or more

A North Carolina general contractor license is required for any construction project where the total cost is $40,000 or more. Below that threshold a license is not required by the NCLBGC (though local permits and other rules may still apply). Bidding on or performing $40,000+ work without a license is unlawful.

North Carolina general contractor licenses come in tiers that limit project value. Which set correctly describes the three limitation levels?

• a.Apprentice, Journeyman, and Master, each tied to the qualifier's years of field experience
• b.Limited (single project up to $40,000), Intermediate (up to $500,000), and Unlimited (up to $5,000,000 per project)
• c.Limited (single project up to $750,000), Intermediate (up to $1,500,000), and Unlimited (no dollar limit)✓
• d.Residential, Commercial, and Industrial, each with the same $1,000,000 cap

Under G.S. 87-10(a), North Carolina issues licenses at three limitation levels based on the value of a single project: a limited license allows a single project up to $750,000, an intermediate license allows a single project up to $1,500,000, and an unlimited license has no restriction on project value. Each cap excludes the cost of land and ancillary costs to improve the land. The level a contractor qualifies for depends on demonstrated financial strength.

The powers and duties of the North Carolina Licensing Board for General Contractors are established by which law?

• a.Chapter 87, Article 1 of the North Carolina General Statutes✓
• b.The federal Miller Act, which governs payment bonds on federal projects
• c.The North Carolina State Building Code alone, as adopted by the Building Code Council
• d.Chapter 44A of the General Statutes

Chapter 87, Article 1 of the North Carolina General Statutes creates the Licensing Board for General Contractors and defines who must be licensed, the license classifications, and the Board's disciplinary powers. (Chapter 44A is North Carolina's lien law, a separate subject.)