North Carolina General Contractor Exam — All Questions

North Carolina ties a contractor's license limitation level to financial strength. Which pairing of level and minimum working capital (or net worth) is correct?

• a.Limited requires $17,000; Intermediate requires $75,000; Unlimited requires $150,000✓
• b.Limited requires $150,000; Intermediate requires $75,000; and Unlimited requires $17,000
• c.Limited requires $1,000,000; Intermediate requires $1,500,000; Unlimited requires $2,000,000
• d.There is no financial requirement for any license level in North Carolina

Board rule 21 NCAC 12A .0204 sets the financial test by license level: a limited license requires working capital (current assets over current liabilities) of at least $17,000 or a total net worth of at least $80,000; an intermediate license requires working capital of at least $75,000; an unlimited license requires at least $150,000. A contractor that cannot document the higher figures is issued the lower limitation level, capping the value of projects it may take.

When a company (rather than an individual) holds a North Carolina general contractor license, what is the role of the 'qualifier'?

• a.The qualifier is an outside auditor who reviews the company's tax returns and certifies its financial statements to the Board each year
• b.North Carolina has no qualifier concept, so a company is licensed solely on its articles of incorporation and proof of working capital
• c.The qualifier is the individual who passed the examination and is responsible for the company's contracting work✓
• d.The qualifier is the customer who signs the construction contract and thereby accepts legal responsibility for the contractor's work

Under G.S. 87-10(b), an applicant identifies an individual who has passed a Board-approved examination, known as the qualifier or qualifying party. Under G.S. 87-10(c1), if the qualifier ceases to be connected with the licensee, the license remains in force for 90 days and is then invalidated until the licensee returns to active status; during those 90 days the licensee may not bid on or undertake additional contracts.