How many members make up the North Carolina State Licensing Board for General Contractors?
Based on: NCGS 87-2 (Licensing Board; organization)
NC Contractor Business & Law Exam · Licensing
NC Contractor Licensing and the Board: Who Needs a Licence (2026)
A North Carolina general contractor licence is required to undertake construction work at or above the cost threshold set in NCGS 87-1, and the licence is issued by the North Carolina Licensing Board for General Contractors under Chapter 87. The Board has nine members appointed by the Governor for staggered five-year terms under NCGS 87-2. A licence carries a classification and a monetary limitation, and each business must have a qualifier who has passed the examination. These are the facts the Business and Law exam tests most heavily, so this guide starts here. The full statute is published free at ncleg.gov.
Practice
Free practice questions
Among the general contractor members, how many must have residential construction as the larger part of their business?
Based on: NCGS 87-2 (Composition of general contractor members)
For how long does a Board member continue to serve after the expiration of the member's term?
Based on: NCGS 87-2 (Terms, vacancies, removal)
With whom must each Board member file the written oath of office?
Based on: NCGS 87-3 (Members of Board to take oath)
Within how many days after appointment must the Board hold its first meeting?
Based on: NCGS 87-4 (First meeting of Board; officers)
What financial safeguard must the secretary-treasurer provide before handling Board money?
Based on: NCGS 87-4 (Secretary-treasurer; bond; assistants)
What words must appear on the seal adopted by the Board?
Based on: NCGS 87-5 (Seal of Board)
Under the statute, in which two months of the year must the Board meet?
Based on: NCGS 87-6 (Meetings; notice; quorum)
Who is responsible for receiving and accounting for all moneys derived from the operation of the general contractors licensing law?
Based on: NCGS 87-7 (Disposition of funds)
What must the register of applicants maintained by the secretary-treasurer show for each applicant?
Based on: NCGS 87-8 (Register of applicants; evidence)
Who must be licensed, and who is exempt
Under NCGS 87-1(a) a general contractor is a person who undertakes to construct or superintend a building, highway, public utility, grading or improvement project where the cost of the undertaking reaches the statutory threshold, and doing that work without a licence is unlawful. The statute also carves out exemptions in NCGS 87-1(b): a property owner who builds on their own property in certain circumstances, and specified farming activity, fall outside the definition. There are further carve-outs in NCGS 87-1.1 for people already licensed under other articles and in NCGS 87-1.2 for certain Department of Transportation work. The reason the exam presses so hard on this line is money. In Brady v. Fulghum, 309 N.C. 580 (1983), the North Carolina Supreme Court held that an unlicensed contractor who was required to be licensed cannot recover on the contract, so an unlicensed builder can be left unable to sue for payment. Unauthorised practice is also directly penalised under NCGS 87-13, and the Board can act against misconduct under NCGS 87-11.
- General contractor defined by the cost of the undertaking (NCGS 87-1(a)).
- Property-owner and farming exemptions (NCGS 87-1(b)).
- Unlicensed contracting is unlawful and unrecoverable (NCGS 87-13; Brady v. Fulghum).
Classifications, limitations and the qualifier
North Carolina does not issue one generic licence. Under 21 NCAC 12A .0202 and NCGS 87-10(b) there are five classifications: Building, Residential, Highway, Public Utilities, and Specialty, and the Specialty classification is itself divided into subclassifications such as Grading and Excavating, Concrete Construction, Masonry Construction, Roofing, Swimming Pools and Asbestos. A contractor sits the examination for the classification they want under 21 NCAC 12A .0403, which allows one examination per classification. Separate from the classification is the monetary limitation. NCGS 87-10(a1) and the rules in 21 NCAC 12A .0203 and .0204 set Limited, Intermediate and Unlimited limits by reference to the applicant's working capital or a surety bond filed in lieu of working capital, and the limitation caps the value of a single project the licensee may take on. Every licensed business also needs a qualifier, the individual who passed the exam and is responsible for the licensee's contracting. NCGS 87-10(c1) gives a ninety-day rule: when the qualifier leaves, the licensee has a limited window to designate a new qualifier before the licence is affected.
Examination, renewal and continuing education
The examination subject matter is fixed by 21 NCAC 12A .0402, the passing grade by 21 NCAC 12A .0404, and scheduling by 21 NCAC 12A .0405, with the statutory prerequisites listed in NCGS 87-10(a). NCGS 87-10(d1) addresses a third attempt at the examination. A licence expires and must be renewed annually under NCGS 87-10(e), which also sets late-payment consequences, and an expired licence is archived under NCGS 87-10(f). Since a licence lapse can be costly, the renewal contents in 21 NCAC 12A .0503 and the duty to keep a current address in 21 NCAC 12A .0505 matter in practice. North Carolina also requires continuing education under NCGS 87-10.2, which sets a mix of mandatory and elective hours, a deadline with a grace period in NCGS 87-10.2(g), and an inactive-status and reinstatement path in NCGS 87-10.2(h). Nonresident applicants and foreign entities are handled by NCGS 87-10.1, which also lets the Board consider delinquent income-tax debt. Discipline for misconduct runs through NCGS 87-11 and the related rule 21 NCAC 12A .0207.
| Classification | What it covers | Cite |
|---|---|---|
| Building | Commercial, industrial and institutional buildings | 21 NCAC 12A .0202(a)(1); NCGS 87-10(b)(1) |
| Residential | Residential construction as defined by the rules | 21 NCAC 12A .0202(a)(2); NCGS 87-10(b)(1a) |
| Highway | Highway and related construction | 21 NCAC 12A .0202(a)(3); NCGS 87-10(b)(2) |
| Public Utilities | Public utility subclassifications | 21 NCAC 12A .0202(a)(4); NCGS 87-10(b)(3) |
| Specialty | Grading, concrete, masonry, roofing, pools, asbestos and more | 21 NCAC 12A .0202(a)(5); NCGS 87-10(b)(4) |
FAQ
Frequently asked questions
Who has to be a licensed general contractor in North Carolina?
In North Carolina, NCGS 87-1 requires a general contractor licence for anyone who undertakes to construct or superintend a project where the cost of the undertaking reaches the statutory threshold. The Licensing Board issues the licence under Chapter 87. Certain property owners building on their own land and specified farming activity are exempt under NCGS 87-1(b).
How many members are on the North Carolina Licensing Board for General Contractors?
In North Carolina, NCGS 87-2 creates a Board of nine members appointed by the Governor for staggered five-year terms. Five members are general contractors, three are public members with no ties to the construction industry, and one is a registered engineer who practices structural engineering. No member may serve more than two complete consecutive terms.
What are the North Carolina contractor licence classifications?
In North Carolina, 21 NCAC 12A .0202 and NCGS 87-10(b) set five classifications: Building, Residential, Highway, Public Utilities and Specialty. The Specialty classification is subdivided into areas such as Grading and Excavating, Concrete, Masonry, Roofing, Swimming Pools and Asbestos. A licence also carries a Limited, Intermediate or Unlimited monetary limitation.
What happens if I contract without a licence in North Carolina?
In North Carolina, NCGS 87-13 makes unlicensed general contracting unlawful, and the Supreme Court held in Brady v. Fulghum, 309 N.C. 580 (1983), that an unlicensed contractor who was required to be licensed cannot recover on the contract. That means an unlicensed builder can be left unable to sue for payment, on top of any penalty the Board pursues.
Does a North Carolina contractor licence need continuing education?
In North Carolina, NCGS 87-10.2 requires continuing education, with a mix of mandatory and elective hours each renewal cycle. NCGS 87-10.2(g) sets the deadline and a grace period, and NCGS 87-10.2(h) provides an inactive-status and reinstatement path. The licence itself is renewed annually under NCGS 87-10(e).
Practice questions