Who must pass the Georgia Business and Law exam, what PSI's bulletin says about questions, time, score and open book rules, how approval letters work, and what reciprocity applicants must do.
Yes. Every candidate for a Georgia contractor license in the residential or general contractor classes has to pass the Georgia Business and Law exam, which PSI gives as a 50 question, 120 minute, open book test with a 70 percent passing score. One pass counts for every residential and general contractor license, and Georgia Rule 553-2-.13 requires it of general contractor applicants who come in by reciprocity; residential reciprocity applicants should confirm with the board.
This guide covers who sits the test, what PSI's candidate bulletin says about format, scoring and reference rules, how the board's exam approval letter works, and where reciprocity applicants fit. For the national picture, start with our contractor license overview, and for a side by side look at other states use the business and law exam by state hub.
At a glance
- Residential Basic, Residential Light Commercial, General Contractor and General Contractor Limited Tier candidates all pass Business and Law, as individuals or qualifying agents (PSI candidate bulletin, updated April 28, 2025).
- The exam is 50 questions, 120 minutes, 70 percent to pass (35 correct), open book, with a $60 PSI fee (same bulletin).
- The board's FAQ says exam approval letters are valid for one year, and Georgia Rule 553-2-.13, paragraph (f), lists passing the exam as a condition of general contractor reciprocity.
- Checked against the Georgia Secretary of State licensing pages, the Georgia Rules and Regulations site and PSI's candidate bulletin on October 16, 2026.
Who has to take the Georgia Business and Law exam
Georgia splits contractor licensing between the State Licensing Board for Residential and General Contractors and the divisions of the State Construction Industry Licensing Board. The first handles Residential Basic, Residential Light Commercial, General Contractor and General Contractor Limited Tier licenses. The PSI bulletin written for that board says every candidate for licensure as a Residential or General Contractor must pass the Business and Law exam, whether the candidate is an individual or a qualifying agent.
The table shows the exams the bulletin pairs with each license. Business and Law is the same test in every row.
| Georgia license | Business and Law exam | Trade exam | Trade exam size |
|---|---|---|---|
| Residential Basic | Required | Residential Basic | 80 questions, 200 minutes |
| Residential Light Commercial | Required | Residential Light Commercial | 90 questions, 230 minutes |
| General Contractor | Required | NASCLA Accredited Examination | 115 questions, 330 minutes |
| General Contractor Limited Tier | Required | NASCLA Accredited Examination | 115 questions, 330 minutes |
The bulletin sets a 70 percent passing score on each of these exams. It lists PSI fees of $60 for Business and Law, $72 for the residential trade exams and $106 for the general contractor exam. Those are the fees as of the bulletin's April 28, 2025 update, so confirm them when you register.
The general contractor trade exam is a NASCLA accredited exam, and passing it does not replace the Georgia test. The bulletin tells those candidates to follow the state application and to take a business and law examination in addition. See our guide to NASCLA exam accredited states.
The State Construction Industry Licensing Board divisions license electrical, plumbing, conditioned air, low voltage and utility contractors. The November 2024 candidate handbooks we read, for conditioned air, low voltage and master and journeyman plumbers, do not list a separate Business and Law exam. The material sits inside the trade exam instead.
The conditioned air and low voltage outlines carry a Regulations, Laws and Administrative Functions section covering items such as workers' compensation, unemployment insurance, state sales and use tax and the business license, and the master plumber outline has a Comply with Business Laws part. For electrical and utility exams, ask the division which sections apply. Our Georgia guides for electricians, plumbers and HVAC contractors cover those licenses.
What the PSI bulletin says about the exam
The Georgia board has contracted with PSI to run its exam program. The bulletin for the residential and general contractor board is dated April 28, 2025, and it tells readers to check PSI's Georgia contractor page for the most current information. Here is what it states for Business and Law.
| Item | What the bulletin states |
|---|---|
| Testing vendor | PSI |
| Questions | 50 |
| Time allowed | 120 minutes |
| Passing score | 70 percent (35 correct) |
| Book rules | Open book, one listed reference |
| Fee | $60 |
| Format | Computer exam, score shown on screen |
The 50 questions are spread across nine subject areas.
| Subject area | Questions |
|---|---|
| Licensing Requirements | 5 |
| Estimating and Bidding | 7 |
| Business Organization and Financial Management | 7 |
| Tax Laws | 5 |
| Labor Laws | 5 |
| Project Management and Lien Law | 6 |
| Contracts | 6 |
| Risk Management | 4 |
| Environmental and Safety | 5 |
Estimating and bidding and business organization and financial management carry the most questions, at 7 each. The bulletin adds that PSI may mix in unscored experimental questions, generally about 10 percent of the question count, and that they count against exam time. Your score appears on screen as soon as you finish, and PSI sends the result to the board.
The open book rules as the bulletin states them
Business and Law is an open book exam in Georgia, and the rules for the book are strict. We do not name the reference here. The bulletin lists it by title and edition, so read the PSI candidate bulletin and use the edition it names.
- The bulletin allows the one reference it lists into the exam center. It also says the reference will not be available at the center, so you bring your own.
- You may highlight, underline and index the reference. It must otherwise be unmarked, with nothing written in it and no papers, loose or attached.
- You may tab it with permanent tabs only. Temporary tabs such as sticky notes are not allowed and must be removed before the exam begins.
- A silent, nonprinting, non-programmable calculator is allowed.
- Phones, other electronics, notebooks, bags and writing tools go in secure storage before you enter the exam room.
How exam approval works
The board decides who may sit for the exam. The bulletin says eligibility is determined by the board, and that after the board approves your application you are told how to contact PSI to register.
The window is one year. You are eligible to take the exams for one year from the date of your exam approval letter, and the board's FAQ states that exam approval letters are valid for one year. You must pass both Business and Law and the trade exam in that year. If you fail one and pass the other, you retake only the one you failed, and if you do not pass within the year, you reapply with the board.
The two documents count sittings a little differently, so know both. The board's FAQ says you get 3 exam sittings within one year.
The PSI bulletin counts attempts by approval: 2 attempts to pass both exams on a first approval, then 1 attempt on your next approval after a failure. It also requires at least a one year wait after your last exam before a third or later attempt when you fail either exam twice, and it cites O.C.G.A. 43-41-6(g) for that wait. Ask the board how it will count your approval before you book a third sitting.
A pass does not need repeating for each license. The bulletin says that once you pass the Georgia Business and Law exam, you have met that requirement for all other residential and general contractor licenses. It does not say how long a pass stays valid, so confirm that with the board if you plan to add a license later.
Reciprocity and the Business and Law exam
Reciprocity in Georgia shortens the path, but it does not remove this exam. Georgia Rule 553-2-.13 covers general contractor applicants who seek a license by reciprocity from a state with a reciprocal agreement. It requires an application, a non-refundable fee, proof of a substantially equivalent license that includes successful completion of an exam, and compliance with the board's laws and Georgia's business requirements. In paragraph (f) it also requires passage of the Georgia Business and Law examination.
The division issues the license at its sole discretion and may deny it or approve it with conditions. The rule site showed the rule current through rules filed through September 17, 2026.
The board's FAQ lists the agreement states. For Unlimited Commercial General Contractors it names Louisiana and Mississippi, and for Residential Basic contractors it names Louisiana, Mississippi and South Carolina. The residential how-to guide names Louisiana and Mississippi only, so confirm South Carolina with the board.
Rule 553-2-.13 is written for the General Contractor Division, so a Residential Basic reciprocity applicant should plan around the bulletin's sentence that all residential and general candidates pass Business and Law, and ask the board to confirm it in writing. Our Georgia contractor license reciprocity guide lists every board and what each says.
The trade divisions offer little. The electrical FAQ says Georgia does not currently offer licensure by reciprocity (effective May 2026), and the plumbers FAQ says Georgia has no reciprocity with other states for master or journeyman plumbers. The conditioned air FAQ says reciprocity is not offered at this time, and the low voltage FAQ says Georgia has no active agreements. Those applicants take the Georgia exam.
From approval letter to score report
- Confirm your license type and whether you apply as an individual or as a qualifying agent. See residential vs commercial licensing if you are not sure which class fits your work.
- Apply to the board and wait for your exam approval letter. Note its date, because your one year window runs from that date.
- Register with PSI after the board approves you. The bulletin points to PSI's Georgia contractor page for online registration, and PSI lets you cancel and reschedule without losing your fee if it receives notice 2 days before the exam date.
- Pick a site. The bulletin lists PSI test centers in Duluth, Marietta, Macon and Tifton, and it says you may ask for out of state testing.
- Get the one reference the bulletin lists, in the edition it names, and mark it only the way the bulletin allows. Our guide to scheduling the exam with PSI, Prov or Pearson VUE walks through registration.
- Arrive at least 30 minutes early with one current, government issued photo ID that shows your name and signature. The bulletin treats a late arrival or missing ID as a missed appointment, and you forfeit your fee.
- Take the exam and read your score on screen. PSI then forwards the result to the board for processing.
- If you fail, read the retake rules above before you book again. Our guide to what to do after a failed contractor exam covers the next move, and exam approval by state shows how other boards run this step.
Frequently asked questions
Is the Georgia Business and Law exam open book? Yes. The PSI bulletin says the exam is open book and allows the one reference it lists. The reference must stay unmarked except for highlighting, underlining and indexing, tabs must be permanent, and the reference is not provided at the exam center.
How many questions are on it, and what score passes? The bulletin lists 50 questions, 120 minutes and a 70 percent minimum passing score, which is 35 correct. Unscored experimental questions may be mixed in, and they count against your time.
If I pass once, can I use it for another Georgia license? The bulletin says that once you pass the Georgia Business and Law exam, you have met the requirement for all other residential and general contractor licenses. It does not state how long a pass stays valid, so ask the board if time has passed.
Does a NASCLA exam or another state's license excuse it? No for the NASCLA trade exam. The bulletin says candidates take a business and law examination in addition to it. For reciprocity, Rule 553-2-.13 requires general contractor applicants to pass the Georgia Business and Law examination.
What if I fail? You retake only the exam you failed, inside the one year window from your approval letter. The board's FAQ speaks of 3 sittings within one year, while the PSI bulletin gives 2 attempts on a first approval and 1 on the next, with a one year wait after two failures of the same exam. Confirm the count with the board.
Can experience or a local license exempt me? Not under the board's FAQ, which says the grandfather clause expired many years ago and all applicants must pass the required exams. Chapter 553-2 of the Georgia rules still carries exemption provisions by title, so if you think one applies, ask the board in writing before you rely on it.
When you cannot sit the exam in time
Sometimes a license cannot move by reciprocity, or a person cannot sit and pass the exam in time. A company can still be licensed through a qualifying agent who already holds the license and qualifies the company as an owner or full time W-2 employee who supervises the work, and our contractor qualifier services fit that situation. Read how a qualifying agent works, see our Georgia qualifying agent guide, or go straight to hire a qualifying agent. If you plan to sit the exam yourself, our own live classes are coming soon at the exam prep tour.
Before you book the exam
Confirm your license type and your attempt count with the board before you pay PSI, and keep your approval letter date where you can see it. If you want a second set of eyes on the route, call The Licensing Company at 615-219-2110 or start at Hire a Qualifying Agent. Marshall Schofield and Jeremiah Jaskulski, both licensed general contractors and master tradesmen, built this company on questions like these.
Sources
All sources retrieved October 16, 2026. Document dates are shown in the link names.
- Georgia Secretary of State, Residential and Commercial General Contractors Frequently Asked Questions
- Georgia Secretary of State, How-To Guide: Commercial General Contractors
- Georgia Secretary of State, How To Guide: Residential Contractors
- PSI, State Licensing Board for Residential and General Contractors Candidate Information Bulletin (updated April 28, 2025)
- PSI, Georgia contractor exam registration page
- Georgia Rule 553-2-.13, General Contractor Division Applicants Seeking Licensure by Reciprocity
- Georgia Rules and Regulations, Chapter 553-2 Examination Exemption
- PSI, Georgia Division of Conditioned Air Contractors Candidate Information Handbook (November 2024)
- PSI, Georgia Division of Low Voltage Contractors Candidate Information Handbook (November 2024)
- PSI, Georgia Division of Master and Journeyman Plumbers Candidate Information Bulletin (November 2024)
- Georgia Board of Electrical Contractors FAQ
- Georgia Division of Master and Journeyman Plumbers FAQ
- Georgia Board of Conditioned Air FAQ
- Georgia Board of Low Voltage Contractors FAQ
Disclaimer: This article is provided for educational and informational purposes only. It does not constitute legal advice, licensing guidance, or an offer of services. Licensing requirements vary by jurisdiction. For specific compliance questions, contact The Licensing Company for a confidential consultation.