North Carolina Contractor License: Requirements, Cost and Exams

Who must hold the license

The threshold that triggers licensure at all

Any project priced at 40000 dollars or more in combined labor and materials requires a licensed general contractor. Older prep guides and some licensing directories still quote a 30000 dollar threshold; that figure is outdated. The current, confirmed threshold is 40000 dollars, not 30000.

License classes

Classifications and monetary tiers

NCLBGC issues licenses in five classifications: Building (all commercial, industrial, institutional, and residential building construction and demolition, plus site work and specialty trades like roofing, masonry, and wind turbine installation), Residential (residential units under the residential building code, plus ancillary site work), Highway (grading, paving, airport runways, bridges and culverts, guard rail work), Public Utilities (water and wastewater system construction, with subclassifications), and Specialty (narrower scopes defined in board rule) (NC Licensing Board for General Contractors, classifications and limitations page, checked 2026-09-03). Every classification is also issued at one of three limitation tiers that cap the size of a single project: Limited caps at 750000 dollars per project, Intermediate caps at 1500000 dollars per project, and Unlimited carries no project cap (NC Licensing Board for General Contractors, checked 2026-09-03). This matches the three tier structure described throughout this page. Surety bonds used in place of the working capital or net worth test must carry an A.M. Best rating of Superior, A++ or A+, or Excellent, A or A minus, and must stay active for the life of the license (NC Licensing Board for General Contractors, checked 2026-09-03).

The qualifier rule

Qualifying the company, and how many companies one agent can qualify

North Carolina licenses the business, or an individual, through a qualifier: a responsible managing employee, owner, officer, or LLC member who has personally passed the required exam, and who is engaged in the licensee's work at least 20 hours a week or a majority of the hours the business operates, whichever is less (NC Licensing Board for General Contractors FAQ page; consistent with board rule 21 NCAC 12 .0205). One qualifier may serve as the qualifier for no more than two licenses at a time; the board's FAQ page states this directly: "Qualifiers may qualify up to two licenses provided the qualifier is a managing employee, owner, officer or member of an LLC or partnership" (NC Licensing Board for General Contractors FAQ page, checked 2026-09-03). This is a real difference from Georgia, which has no cap, and is closer to Tennessee and South Carolina, where a qualifier may qualify only one company. A license can also carry more than one qualifier at once, so if one qualifier on file stops passing muster and another remains, the license does not automatically go dark (NC Licensing Board for General Contractors FAQ page). The underlying rule, 21 NCAC 12 .0205, is cited here through the board's FAQ page rather than the full rule text; confirm the two license cap directly with the board before relying on it for an unusual situation.

Replacement rules and deadlines when a qualifier leaves

This is the number most likely to get quoted wrong, so get it exactly right. Both the licensee and the qualifier must notify the board in writing within 10 days of the separation date, and the notice must state the date the qualifier was last connected to the licensee (21 NCAC 12A .0205, checked 2026-09-03). The license itself stays in full force and effect for 90 days from the termination date, and at the end of those 90 days it automatically becomes invalid with no further board action required, unless another qualifier is already on file (21 NCAC 12A .0205 and G.S. 87-10). There is also a bidding restriction during that window, and it is immediate, not a grace period: North Carolina General Statute 87-10(c1) (North Carolina General Assembly, checked 2026-09-03) states the licensee "shall not bid on or undertake any additional contracts from the time such qualifier or qualifying party ceased to be connected with the licensee until the license is reinstated." So from day one without a qualifier, the company can finish existing work but cannot bid on or start any new contract, even though the license is still technically active for the full 90 days. If your qualifier has just left, treat this as time critical: you are frozen out of new work immediately, not just running a countdown clock.

Exams

Exam requirements and current vendor

PSI Examination Services administers the computer based exams for NCLBGC (NC Licensing Board for General Contractors license applicants page). There are two paths. The direct state path has an applicant pass the classification specific exam, for example the Building Contractor exam or the Residential Contractor exam, which already covers North Carolina building code, cost estimation, contractor law and responsibilities, and Sedimentation Pollution Control Act requirements in one sitting, passing score 70 percent, with no separate business and law exam needed on this path (NC Licensing Board for General Contractors). The NASCLA exam itself is widely described by PSI aligned exam prep sources as 115 questions over 330 minutes, open book against 23 named references, 81 percent to pass; confirm the exact count against the official NASCLA bulletin before quoting it as a hard number.

NASCLA acceptance, and exactly what it covers

North Carolina accepts the NASCLA Accredited Examination as the trade exam substitute for BOTH the Building classification and the Residential classification, not Building only (NASCLA North Carolina participating agency page). It replaces the trade knowledge exam only; the separate North Carolina Business and Law exam described above is still required on top of it. The NASCLA page states a candidate must have passed the NASCLA National Contractors Exam within the past 2 years for North Carolina to accept it (NASCLA). An applicant sitting on an older NASCLA pass may not be able to use it here without retesting, so confirm the pass date before counting on it to transfer. North Carolina joins Alabama, Georgia, Louisiana, Mississippi, South Carolina, and Tennessee as states that accept the NASCLA Accredited Examination on this kind of pathway.

Testing and exams (from the candidate bulletins)

All NCLBGC exams (Business and Law, Building, and Residential, plus the specialty and other classification exams) run through PSI Services LLC, the vendor under contract to the board. The NASCLA Accredited Examination for Commercial General Building Contractor, the substitute trade exam described above, is also delivered by PSI but is a separate national program run through NASCLA's own approval process before PSI will schedule a test date. The four exams that matter most for a North Carolina applicant are the standalone Business and Law exam, the Building classification exam, the Residential classification exam, and the NASCLA exam. Highway and Public Utilities classification exams exist in the same bulletin but are used far less often and are not covered here.

Reading the four exams side by side in the same bulletin shows how they fit together: the Building and Residential classification exams each already contain their own Business and Law content area inside the single exam, which is why the direct state path needs no separate business and law sitting. The standalone Business and Law exam described below, 40 questions, 90 minutes, 70 percent to pass, is the one required on top of the trade exam only for candidates who come in through the NASCLA exam or through an out of state exam waiver, matching the board's FAQ and the PSI bulletin's own numbers for that standalone section.

North Carolina Business and Law Exam (PSI)

Vendor and scheduling: PSI Services LLC, schedule online at test-takers.psiexams.com/nccon or by phone at 855 746 8173. A valid Eligibility Letter from NCLBGC is required before PSI will schedule the exam; the letter is valid 120 days from its date and covers one examination attempt. Question count and time limit: 40 questions, 90 minutes. Passing score: 70 percent. Open or closed book: open book. What it covers: the bulletin's content outline lists five subject areas, Erosion and Sedimentation Control, Licensing, Subcontractor's Pay Requirements, Liens and Bonds, and One Call, totaling the 40 scored questions. The bulletin's two column layout makes the exact per topic question split hard to confirm cleanly, so only the topic list, not the per topic count, should be treated as confirmed. Approved references: the bulletin names one allowed reference, Contractor's Guide to Business, Law and Project Management, North Carolina General Contractors Edition, 10th Edition, NASCLA (23309 N. 17th Drive, Phoenix, Arizona 85027). Later editions of non code references may be used as they become available; code questions are always based on the specific code edition named. Tabbing and highlighting: references may be highlighted, underlined, and indexed before the exam. Only permanent tabs are allowed; PSI names permanent plastic tabs and Redi Tag self stick permanent adhesive index tabs as acceptable examples. Post it index flags and Post it flags are explicitly unacceptable and must be removed before the exam will begin. No writing in the reference during or before the exam, no notes on tabs, and no loose or additional papers beyond the bound approved reference. Where to test: seven PSI centers in North Carolina: Asheville, Charlotte, Greenville, Raleigh, Fayetteville, Wilmington, and Winston Salem. PSI also runs centers nationwide including neighboring states; an out of state candidate uses the Out of State Request Form named in the bulletin to test at any PSI center in the country. The bulletin does not name specific neighboring state cities. Remote proctoring: not mentioned anywhere in this bulletin. Every instruction assumes an in person test center visit. Retake rules and fees: 79 dollars per exam attempt, charged for each sitting whether it is a first attempt or a repeat, and not refundable or transferable. Candidates may retake an exam as many times as they choose within a 12 month period so long as the underlying license application information stays valid; a failing candidate gets a revised examination authorization and official scores from the board within 3 working days of the board receiving the score from PSI. Under North Carolina General Statutes 87-10 (statute text), application fees are 75 dollars Limited, 100 dollars Intermediate, and 125 dollars Unlimited; the PSI exam fee is 79 dollars per attempt; the NASCLA route adds a 65 dollar NASCLA application fee and the 130 dollar NASCLA exam fee. (PSI Candidate Information Bulletin for the Business and Law, Building, and Residential exams, updated 11/19/2025.)

North Carolina Building Contractor Exam (PSI)

Vendor and scheduling: same PSI program and portal as the Business and Law exam above, with the same 120 day Eligibility Letter requirement. Question count and time limit: 90 questions, 200 minutes. Passing score: 70 percent. Open or closed book: open book. What it covers: all building construction activity, commercial, industrial, institutional, and residential building construction, plus related site work, and the specialty scopes of Concrete, Insulation, Interior Construction, Marine Construction, Masonry, Roofing, Metal Erection, Swimming Pools, and Asbestos work done as part of a building project. The content outline breaks the 90 questions into Site Work, Concrete, Masonry, Metals, Carpentry, Roofing, Associated Trades, Business and Law, Safety, Estimating and Plan Reading and General Building Code Requirements, One Call, Erosion and Sedimentation Control, Licensing, Liens, and Sports Fields, with item counts of 6, 13, 6, 12, 7, 6, 3, 7, 4, 14, 2, 2, 2, 1, and 5 respectively, which sums to the full 90 questions. Approved references: the North Carolina State Building Code Building Code 2018, the North Carolina State Building Code Administrative Code and Policies 2018, ANSI A117.1 2017 Accessible and Usable Buildings and Facilities, and the same Contractor's Guide to Business, Law and Project Management North Carolina General Contractors Edition 10th Edition used on the Business and Law exam. A longer list of titles, including Carpentry and Building Construction, Design and Control of Concrete Mixtures, Pipe and Excavation Contracting, Roofing Construction and Estimating, and Modern Masonry, are used to write questions but are recommended study only, not permitted physically in the exam room. Because the source bulletin's layout makes this section hard to extract cleanly, confirm the current allowed versus study only list directly against the live bulletin before relying on exactly which books may be carried in. Tabbing and highlighting: identical rule to the Business and Law exam above: permanent tabs only, Redi Tag style adhesive tabs acceptable, Post it style removable flags not acceptable, no writing in the reference, only code related references may be copied or downloaded and bound into a 3 ring binder or spiral bound, no partial references accepted. Where to test: the same seven North Carolina PSI centers and the same nationwide Out of State Request Form option as above. Remote proctoring: not mentioned in this bulletin. Retake rules and fees: 79 dollars per attempt, with the same 12 month unlimited retake language and 3 working day rescore turnaround as the Business and Law exam.

North Carolina Residential Contractor Exam (PSI)

Vendor and scheduling: same PSI program, portal, and 120 day Eligibility Letter as the two exams above. Question count and time limit: 90 questions, 210 minutes. Passing score: 70 percent. Open or closed book: open book. What it covers: construction of residential units built to the residential building code adopted under G.S. 143 138, plus ancillary site work, driveways, sidewalks, and water and wastewater systems, and the specialty scopes of Insulation, Interior Construction, Masonry Construction, Roofing, Swimming Pools, and Asbestos when done as part of a residential job. The content outline lists Site Work and Footings and Foundations, Concrete and Concrete Reinforcement, Masonry, Carpentry, Associated Construction Trades including Energy Conservation and Drywall, Roofing, Estimating and Plan Reading and General Residential Code Requirements, OSHA Safety, Licensing and Business and Law, and Special Construction Zones for wind and coastal areas and Erosion and Sedimentation Control, totaling the 90 scored questions. The bulletin's column layout makes the exact number attached to each individual topic hard to extract cleanly, so only the topic list itself, not each topic's precise item count, should be treated as confirmed; the 90 question total is confirmed. Approved references: North Carolina Occupational Safety and Health Standards for the Construction Industry, the Contractor's Guide to Business, Law and Project Management North Carolina General Contractors Edition 10th Edition, the North Carolina State Building Code Residential Code 2018, and the North Carolina State Building Code Administrative Code and Policies 2018. A further list, Carpentry and Building Construction, Roofing Construction and Estimating, Modern Masonry, Pipe and Excavation Contracting, and the Contractor's Guide to Quality Concrete Construction among others, are used to write questions but not allowed physically in the room. Tabbing and highlighting: identical rule to the other two NCLBGC exams above. Where to test: the same seven North Carolina PSI centers and nationwide Out of State Request Form option. Remote proctoring: not mentioned in this bulletin. Retake rules and fees: 79 dollars per attempt, with the same 12 month unlimited retake and 3 working day rescore language as the other two NCLBGC exams.

NASCLA Accredited Examination for Commercial General Building Contractor (PSI, on behalf of NASCLA)

Vendor and scheduling: PSI Services LLC delivers the exam, but NASCLA itself must first approve the candidate's application at the NASCLA exam application portal before PSI will schedule anyone. Once approved, schedule online at PSI NASCLA exam portal or by phone at 855 746 8177. Question count and time limit: 115 scored questions plus 10 unscored pretest questions, 330 minutes total, which is the 300 minute base exam time with the pretest item time folded in. Passing score: 81 correct answers out of 115, about 70 percent. Open or closed book: open book. What it covers: General Requirements, Site Construction, Concrete, Masonry, Metals, Wood, Thermal and Moisture Protection, Doors Windows and Glazing, Finishes, Mechanical and Plumbing Systems, Electrical Systems, and Procurement and Contracting Requirements, with item counts of 25, 15, 6, 4, 6, 5, 5, 4, 5, 6, and 31 respectively; some counts are approximate where a topic boundary in the bulletin is ambiguous, but the 115 total and the topic list are confirmed. Approved references: this is a long, named list rather than a single book, current as of the bulletin dated 7/7/2026, and includes the NASCLA Contractors Guide to Business, Law and Project Management Basic 14th Edition, the International Building Code 2021 or 2024, ACI 318 14 or ACI 318 19 for structural concrete, ICC A117.1 2017, the 2023 edition OSHA 29 CFR Part 1926 (or PSI's own OSHA excerpts), Construction Jobsite Management 4th or 5th edition, Construction Project Management 4th or 5th edition, Mechanical and Electrical Systems for Construction Managers 4th Edition 2024, Modern Masonry 9th edition 2020, Principles and Practices of Commercial Construction 11th edition 2024, and roughly a dozen more narrower trade references covering steel joists, gypsum, precast erection, post tensioning, EIFS, and stormwater pollution prevention. A physical blueprint and diagram packet is handed out at the test center itself, not brought by the candidate. Given the length of this list and how often it is revised, treat the current bulletin as the source of record before buying books, and confirm nothing has changed since this 7/7/2026 revision. Tabbing and highlighting: references may be highlighted, underlined, and indexed, and must otherwise be unmarked and free of loose inserted papers. Tabs must be permanent; temporary tabs such as Post it notes are not allowed and must come out before the exam starts. These references are not available at the test center; candidates must bring their own copies. Where to test: nationwide PSI centers, with exact locations shown once scheduling begins; the bulletin does not publish a fixed North Carolina specific list the way the state's own NCLBGC bulletin does, since this is a national exam program. Remote proctoring: the current bulletin's identification rules carve out an exception for candidates testing remotely: government issued military identification cards are called out as not accepted for remote testing while other forms of photo ID are, which confirms remote proctoring is offered as an option, though the bulletin does not spell out the remote testing procedure beyond that one identification carve out. Retake rules and fees: 130 dollars, valid for one year from the date of payment. Approval from NASCLA is good for one year from the approval date, during which a candidate gets up to 3 attempts; if all 3 are used without passing, the candidate must reapply to NASCLA and start the one year clock over. (NASCLA Accredited Examination Commercial General Building Contractor, Candidate Information Bulletin, PSI Services LLC on behalf of NASCLA, updated 7/7/2026.)

Experience

Experience requirements

A fixed minimum number of years of experience to sit the exam is not stated in the board materials reviewed for this page. The stated requirements to apply are being at least 18 years old, demonstrating good moral character as the board determines it, providing evidence of financial responsibility, and being legally registered to do business in North Carolina (NC Licensing Board for General Contractors license applicants page). Several third party guides describe the application also calling for letters of reference, commonly cited as three, not from family or related businesses, on letterhead or notarized, as the practical stand in for a years of experience test. Confirm the exact count with the board or the application packet itself before quoting an exact number.

Bond and insurance

Financial requirements

The financial bar attaches to the license applicant, the business or individual being licensed, not to the qualifier personally the way Florida tests a personal FICO score. Limited requires current assets exceeding current liabilities by at least 17000 dollars, or a total net worth of at least 80000 dollars, or in place of either a 175000 dollar surety bond. Intermediate requires working capital of at least 75000 dollars, shown through an agreed upon procedures report or an audited financial statement from a CPA or independent accountant, or a 500000 dollar surety bond. Unlimited requires working capital of at least 150000 dollars shown the same way, or a 1000000 dollar surety bond (NC Licensing Board for General Contractors classifications and limitations page). Any applicant, owner, or qualifier who has been in bankruptcy within the past five years must provide an audited financial statement with a classified balance sheet regardless of tier (21 NCAC 12A .0204); confirm the current requirement directly with the board.

Fees and timeline

Application and processing timelines

The board's own FAQ describes roughly two weeks of initial staff processing and a realistic total of about 30 days from a complete application to licensure if the required exam or exams are already passed, with 2 to 3 weeks after exams are completed if an exam was still needed (NC Licensing Board for General Contractors FAQ page, checked 2026-09-03). In practice, licensure often takes closer to 6 weeks; the difference is likely exam scheduling and board meeting timing rather than a contradiction, so treat 6 weeks as the realistic working estimate and the board's 30 day figure as the best case scenario. Under North Carolina General Statutes 87-10 (statute text), the renewal schedule is annual, expiring January 1, with renewal fees of 75 dollars Limited, 100 dollars Intermediate, and 125 dollars Unlimited, plus 10 dollars for each month or part of a month late.

Reciprocity

Reciprocity and exam waivers

North Carolina runs exam waiver agreements, not blanket reciprocity, with South Carolina, Tennessee, Louisiana, Georgia, Mississippi, Alabama, and Florida, plus Virginia for the Residential and Building classifications and Arkansas for the Building, Residential, Highway, Public Utilities, and several specialty classifications. An updated agreement with Mississippi adds the Marine Construction and Railroad classifications (NC Licensing Board for General Contractors Board Buzz Spring 2025 newsletter, checked 2026-09-03). In every case the waiver only excuses the trade exam; the applicant still must meet all of North Carolina's application, financial, and background requirements, and must still separately pass the North Carolina Business and Law exam (NC Licensing Board for General Contractors). An out of state license does not get you into North Carolina without also passing that Business and Law exam.

Trades

Trades overlay

Electrical contracting in North Carolina runs through its own board, the NC Board of Examiners of Electrical Contractors, a completely separate agency from NCLBGC (NC Electrical Contractors Board). Plumbing, heating, fuel gas piping, HVAC, and fire sprinkler contracting all run through one board, the NC State Board of Examiners of Plumbing, Heating, and Fire Sprinkler Contractors, also separate from NCLBGC (NC Plumbing Heating Fire Sprinkler Board). If you only want an electrical, plumbing, or HVAC license in North Carolina, you are dealing with a different state agency entirely, not a specialty classification inside the general contractor board.

Questions contractors ask

Do I need a contractor license in North Carolina?

Yes. Any North Carolina project of $40,000 or more in combined labor and materials needs a licensed general contractor. The license is issued by the NC Licensing Board for General Contractors. The company must be qualified by a responsible managing employee, owner, officer, or LLC member who has passed the required exam and works at least 20 hours a week in the business.

Who issues a construction license in North Carolina?

The NC Licensing Board for General Contractors issues general contractor licenses, covering building, residential, highway, public utilities, and specialty construction. Electrical contractors are licensed separately by the NC Board of Examiners of Electrical Contractors. Plumbing, heating, fuel gas piping, fire sprinkler, and HVAC contractors are licensed separately by the NC State Board of Examiners of Plumbing, Heating, and Fire Sprinkler Contractors.

What is the home improvement license threshold in North Carolina?

Any North Carolina project of $40,000 or more in combined labor and materials requires a licensed general contractor, issued by the NC Licensing Board for General Contractors. Some older guides and licensing directories still cite a $30,000 threshold, but that figure is outdated; the current, confirmed threshold is $40,000.

What are North Carolina's general contractor license requirements?

North Carolina requires applicants to be at least 18 years old, show good moral character, demonstrate financial responsibility, and be legally registered to do business in the state. Many guides describe the application also requiring letters of reference, commonly three, not from family or related businesses. Applicants must also pass the classification exam through PSI Examination Services and qualify the company through a managing employee, owner, officer, or LLC member working at least 20 hours a week.

Does North Carolina require a separate HVAC license?

Yes. HVAC contractors in North Carolina are licensed separately from general contractors. Plumbing, heating, fuel gas piping, fire sprinkler, and HVAC contractors are licensed by the NC State Board of Examiners of Plumbing, Heating, and Fire Sprinkler Contractors, not the NC Licensing Board for General Contractors.

How do you become a licensed contractor in North Carolina?

An applicant applies to the NC Licensing Board for General Contractors, meeting age, moral character, financial responsibility, and business registration requirements, then passes a classification exam, such as the Building or Residential exam through PSI Examination Services, or the NASCLA exam plus the North Carolina Business and Law exam. The applicant must then qualify the company as a managing employee, owner, officer, or LLC member working at least 20 hours a week.

The board

Who licenses general contractors

The NC Licensing Board for General Contractors (NCLBGC), based in Raleigh, licenses general contractors for building, residential, highway, public utilities, and specialty construction work across the state (NC Licensing Board for General Contractors). Electrical contractors are licensed separately by the NC Board of Examiners of Electrical Contractors (NC Electrical Contractors Board). Plumbing, heating, fuel gas piping, fire sprinkler, and HVAC contractors are licensed separately by the NC State Board of Examiners of Plumbing, Heating, and Fire Sprinkler Contractors (NC Plumbing Heating Fire Sprinkler Board).