Who needs a contractor license in North Carolina?
Threshold: $40,000+ project value (cost of construction, excluding land)
Any person, firm, or corporation performing general contracting work — construction, alteration, or repair of buildings, highways, public utilities, or other improvements — must hold a valid NCLBGC license when the total project cost is $40,000 or more. Owner-builders constructing on property they own may qualify for an exemption under NC GS § 87-1(b) by filing a verified affidavit confirming they will personally superintend all work.
| Code | License Type | Scope |
|---|---|---|
| BUILDING | Building | Commercial, industrial, institutional, and multi-family residential building construction. The broadest general classification covering most vertical construction projects. |
| RESIDENTIAL | Residential | Single-family homes, townhomes, and residential additions or renovations. Contractors may not perform commercial building work under this classification alone. |
| HIGHWAY | Highway | Roadway, bridge, and transportation infrastructure construction — including road building, resurfacing, and bridge work on public and private transportation projects. |
| PUBLIC-UTILITIES | Public Utilities | Water, wastewater, gas, electrical, and telecommunications utility infrastructure construction and facility work. |
| SPECIALTY | Specialty | Narrowly scoped trades within a single discipline. Common specialties include electrical, plumbing, HVAC, solar, demolition, masonry, and roofing. Each specialty sub-category is evaluated independently. |
Requirements for a North Carolina contractor license
| Requirement | Details |
|---|---|
| Experience | Applicants must accumulate sufficient experience points through a Board-defined points system. Points are awarded for direct construction work, project management, and supervisory roles — with management experience weighted more heavily. The minimum points required increase by tier and classification. Detailed point requirements are published in the NCLBGC application packet. |
| Exam | Applicants must pass two PSI-administered exams: (1) a classification-specific trade exam (e.g., Building Contractor Exam — 90 questions, 3 hours) and (2) a combined exam integrating Business & Law topics. The NASCLA Accredited Exam (115 questions, 5.5 hours) is accepted as an alternative to the state trade exam. Exams are partially open-book; PSI publishes an approved reference/tab list in the Candidate Information Bulletin. Passing score: 70% (63 of 90 correct on the Building exam). Candidates must receive Board approval and an Eligibility Letter before scheduling with PSI. |
| Bond | No surety bond required if the applicant meets net worth or working capital thresholds. A surety bond may be substituted as an alternative: Limited = $350,000 bond; Intermediate = $1,000,000 bond; Unlimited = $2,000,000 bond. |
| Insurance | Workers' Compensation insurance is required for all contractors with employees (per NC GS Chapter 97). General Liability insurance is required; minimum coverage limits are set by the Board and vary by classification. Proof of current coverage must be maintained throughout the license term — any lapse can trigger suspension. |
How to apply for a North Carolina contractor license
- Determine your classification and tier
Choose the license classification(s) that match your work — Building, Residential, Highway, Public Utilities, or Specialty. Then select your tier based on the largest project you intend to bid: Limited (up to $750,000), Intermediate (up to $1,500,000), or Unlimited. Higher tiers require more financial documentation.
- Gather financial documentation
Prepare financial statements (balance sheet, profit & loss) dated within the last 18 months. You must meet one of the following per tier — Limited: $17,000 working capital or $80,000 net worth (reviewed statements accepted) or $350,000 surety bond; Intermediate: $75,000 working capital (audited statements) or $1,000,000 surety bond; Unlimited: $150,000 working capital (audited statements) or $2,000,000 surety bond.
- Submit the license application online
Create an account on the NCLBGC applicant portal, complete the application, and upload all required documents — financial statements, employment history for experience points, insurance certificates, and application fee payment. Incomplete applications are returned; the Board will notify you once the application is approved and you are eligible to schedule exams.
- Schedule and prepare for your PSI exam(s)
After receiving your Board Eligibility Letter (valid 120 days, one attempt), register for the appropriate trade exam and/or NASCLA exam through PSI online or by phone at (800) 733-9267. Download the Candidate Information Bulletin from test-takers.psiexams.com/nccon for the approved reference list and tab placement rules. Exams are partially open-book — prepare your tabbed code books in advance.
- Pass both required exams
Complete the classification-specific trade exam (90 questions, 3 hours, 70% passing score for Building) and integrate Business & Law knowledge. PSI reports scores directly to the NCLBGC. If you fail an exam section, you must wait the required period before retesting; your Eligibility Letter may need renewal if it expires.
- Receive your license
After passing all required exams, the NCLBGC processes your license issuance — typically within days to a few weeks of receiving passing scores. Your license will specify your tier, classification(s), and the qualifying party's name. Display your license number on all contracts and advertising.
- Renew annually
NC general contractor licenses must be renewed each year. Submit the renewal application with current proof of insurance and updated financial documentation through the NCLBGC renewal portal before your expiration date. Late renewals incur a penalty fee. Failing to renew results in license lapse requiring a new application and reexamination.
Cost of getting a North Carolina contractor license
Get a bond quote for your North Carolina contractor license
We'll match you with a surety partner and send a quote to your inbox.
You're on the list. We'll send bond quotes for North Carolina to your inbox.
| Item | Amount | Notes |
|---|---|---|
| Application fee — Limited tier | Up to $75 | Statutory cap per NC GS § 87-10 (pre-HB 661 figures; verify current Board-adopted fee at nclbgc.org) |
| Application fee — Intermediate tier | Up to $100 | Statutory cap; verify current rate with NCLBGC |
| Application fee — Unlimited tier | Up to $125 | Statutory cap; verify current rate with NCLBGC |
| PSI exam fee (per attempt) | ~$100–$150 | Fee paid directly to PSI at scheduling; exact amount in current Candidate Information Bulletin at test-takers.psiexams.com/nccon |
| Annual renewal fee — Limited tier | Up to $300 | Updated cap per NC HB 661 (2025); verify Board-adopted rate at nclbgc.org |
| Annual renewal fee — Intermediate tier | Up to $200 | Updated cap per NC HB 661 (2025) |
| Annual renewal fee — Unlimited tier | Up to $250 | Updated cap per NC HB 661 (2025) |
| Late renewal penalty | Up to $50 | Updated cap per NC HB 661 (2025); previously $10/month |
| Financial statement preparation (CPA review/audit) | $500–$3,000+ | Cost varies by CPA firm; Intermediate and Unlimited tiers require audited statements |
| Surety bond (if substituting for financial statements) | $1,750–$8,000+/yr | Annual premium (typically 0.5–1% of bond amount): Limited = $350K bond; Intermediate = $1M bond; Unlimited = $2M bond |
How long does it take to get a North Carolina contractor license?
| Phase | Duration | Notes |
|---|---|---|
| Application preparation | 2–6 weeks | Gathering financial statements, documenting experience points, obtaining insurance certificates |
| Board application review | 4–8 weeks | NCLBGC staff review completeness, then substantive qualifications. Incomplete applications are returned, restarting the clock. |
| Exam scheduling and preparation | 2–6 weeks | Eligibility Letter valid 120 days; PSI appointments typically available within 1–2 weeks. Allow time to tab and review reference books. |
| Exam results and license issuance | 1–2 weeks | PSI reports scores to NCLBGC quickly; license typically issued within days to weeks of passing. |
| Total (application through active license) | 3–6 months | Typical range. Complex applications or retest situations can extend to 6+ months. |
North Carolina contractor license exam
NC Building Contractor Exam (PSI) — or NASCLA Accredited Exam for Commercial Building Construction
Computer-based, partially open-book. Building Contractor Exam: 90 questions, 3 hours. NASCLA alternative: 115 questions, 5.5 hours. Approved tabbed reference books permitted per PSI Candidate Information Bulletin; no personal notes or unmarked books allowed.
Passing score: 70% (63 of 90 correct on Building Contractor Exam; equivalent threshold on NASCLA exam ~70%)
Exam topics
- Building codes and plans interpretation
- Cost estimation and project bidding
- Construction methods and materials
- Site work and foundations
- Framing, roofing, and envelope systems
- Mechanical, electrical, and plumbing coordination
- Contract law and construction contracts
- NC licensing law and NCLBGC regulations (Chapter 87)
- Business financial management and accounting
- Liens, bonds, and insurance fundamentals
- OSHA safety standards
- Workers' compensation and labor law
Frequently asked questions
What is the minimum project size requiring an NC general contractor license?
Any construction project costing $40,000 or more requires the contractor to hold a valid NCLBGC license. This threshold was raised from $30,000 to $40,000 by Session Law 2019-97 (effective October 1, 2019) and remains unchanged as of 2026. Projects under $40,000 do not require a state GC license, though local permits and specialty trade licenses may still apply.
What are the three NC general contractor license tiers?
NC has three tiers: Limited (projects up to $750,000), Intermediate (projects up to $1,500,000), and Unlimited (no cap). The tier limits refer to a single project's total construction cost, excluding land. You must hold the appropriate tier license for every project you bid — a Limited license holder cannot legally bid a $900,000 job.
Does NC require a surety bond for a general contractor license?
Not necessarily. NC uses financial responsibility thresholds — net worth or working capital — rather than a mandatory bond. If you meet the working capital or net worth minimum for your tier, no bond is required. A surety bond is accepted as an alternative: $350,000 (Limited), $1,000,000 (Intermediate), or $2,000,000 (Unlimited). Most financially stable contractors qualify without purchasing a bond.
Do I need prior experience to get a NC general contractor license?
Yes. The NCLBGC requires applicants to demonstrate experience through a points-based system. Points are earned for construction work experience, project management, and supervisory roles. You do not need a college degree, but you must document enough qualifying work history — the minimum point threshold varies by tier and classification. The experience requirement is documented during the application process.
How much does it cost to get a NC general contractor license?
Budget $500–$2,500+ for the full process depending on your tier. Typical costs include: application fee (up to $75–$125 by tier), PSI exam fee (~$100–$150 per attempt), CPA financial statement preparation ($500–$3,000+ for audited statements at Intermediate/Unlimited), and optional exam prep courses ($200–$500). Annual renewal fees run up to $200–$300 by tier.
Can I use my license from another state in North Carolina?
NC does not have broad reciprocity agreements with other states. Out-of-state contractors generally must satisfy standard NCLBGC requirements, including passing the PSI exam and meeting NC's financial responsibility standards. However, NC does accept the NASCLA Accredited Exam as an alternative to the state trade exam — if you passed NASCLA in another state, check with the NCLBGC whether your score can be transferred.
How long does it take to get a NC general contractor license?
The process typically takes 3–6 months from start to active license. Plan approximately 2–6 weeks to gather documents, 4–8 weeks for Board review, and 2–6 weeks to schedule and pass your PSI exam. Complex applications, incomplete submissions, or exam retakes can extend the timeline. Start the process well before you need the license for a specific project.
Sources
Facts on this page were verified against the following primary sources on May 8, 2026. Licensing laws, fees, and bond amounts change — always confirm with the official board before acting.
- NC Licensing Board for General Contractors — Official Website — Primary regulatory authority; contact: 919-571-4183, licensing@nclbgc.org (retrieved 2026-05-08)
- NC General Statutes Chapter 87 — Contractors (ncleg.gov) — Statutory authority; establishes $40,000 threshold, tier limits, financial responsibility, and exam requirements (retrieved 2026-05-08)
- PSI Exams — NC Contractor Licensing Portal — Exam scheduling, Candidate Information Bulletin, approved reference list, and tab rules (retrieved 2026-05-08)
- NC HB 661 (2025) — Building Industry Efficiency Act (fee cap updates) — Updated statutory fee caps: renewal fees increased to $200–$300 by tier; late fee cap raised to $50 (retrieved 2026-05-08)
- NC GS § 87-10 — Qualifications and Fees (Article 1, Chapter 87) — Specifies examination requirements, fee caps, and financial responsibility standards by tier (retrieved 2026-05-08)