Licensing

North Carolina contractor license requirements

In North Carolina you need a general contractor license from the North Carolina Licensing Board for General Contractors for any project costing $40,000 or more. The license tier you hold sets the largest single project you can take.

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Keep plans, permit requirements and approvals together when preparing construction work. AI-generated illustration.

North Carolina requires a state general contractor license when the cost of the undertaking is $40,000 or more. The North Carolina Licensing Board for General Contractors (NCLBGC) issues the license under Chapter 87, Article 1 of the General Statutes. Each license carries a limitation (limited, intermediate, or unlimited) that caps the size of any single project, and a classification (such as building or residential) that defines the type of work. Below $40,000, no general contractor license is needed, but electrical, plumbing, and HVAC work have their own boards.

North Carolina general contractor licensing at a glance
ItemRule
Licensing agencyNorth Carolina Licensing Board for General Contractors
When a license is requiredProjects costing $40,000 or more (G.S. 87-1)
Limited licenseSingle projects up to $750,000; working capital of $17,000 or net worth of $80,000, or a $175,000 bond; $75 fee
Intermediate licenseSingle projects up to $1,500,000; working capital of $75,000 or a $500,000 bond; $100 fee
Unlimited licenseNo project cap; working capital of $150,000 or a $1,000,000 bond; $125 fee
ExamRequired for the classification; passing score 70; exam fee up to $100
RenewalAnnually; licenses expire January 1 and become invalid 60 days later if not renewed
Continuing education8 hours a year (2 mandatory) for building, residential, and unclassified licenses
License lookupNCLBGC License Search at portal.nclbgc.org/Public/Search

The $40,000 threshold and who it covers

Under G.S. 87-1, anyone who bids on, builds, or superintends or manages the construction of a building, highway, public utility, grading, or other improvement costing $40,000 or more is a general contractor and needs a license. Note the word "bid." You need the license before you submit a bid on a qualifying job, not just before you mobilize.

There are narrow exceptions. An owner building on their own land for their own occupancy can be exempt, but if the building is not occupied solely by the owner for at least 12 months after completion, the law presumes it was not built for the owner's own use. Farmers building on farmland for their own use, and firms furnishing or erecting industrial equipment, power plant equipment, radial brick chimneys, and monuments, are also outside the definition.

The threshold is enforced at the permit counter. G.S. 87-14 says that before a local building inspector issues a building permit for work costing $40,000 or more, the applicant must show proof of a license (or a sworn affidavit for the owner exemption) and proof of workers' compensation insurance. For many jobs of that size the applicant must also give the name and contact details of the owner's designated lien agent, which ties into North Carolina mechanics lien rules.

Limitations: matching the license to your project size

The limitation is the number that matters most for a growing contractor. The project values exclude the cost of land and ancillary land improvement costs.

  • Limited: single projects up to $750,000. Show current assets exceeding current liabilities by at least $17,000, or a total net worth of at least $80,000.
  • Intermediate: single projects up to $1,500,000. Show working capital of at least $75,000 through an agreed-upon procedures report on the Board's form or an audited financial statement prepared by a CPA or independent accountant.
  • Unlimited: no cap on project value. Show working capital of at least $150,000 the same way.

Instead of the working capital or net worth test, an applicant can post a surety bond: $175,000 for limited, $500,000 for intermediate, or $1,000,000 for unlimited. The surety must hold an A.M. Best rating of A- or better, and the bond stays in force as long as you rely on it. Say you hold a limited license and a church asks you to bid a $900,000 fellowship hall. You cannot take it until you move up to intermediate, which means new financials or a bigger bond. Plan the upgrade before bid day, and keep your WIP report and balance sheet clean so the accountant's report is quick.

Classifications

The Board licenses these classifications: building, residential, highway, public utilities (with subclassifications such as water and sewer mains or electrical transmission), specialty, and unclassified, which includes all of the others. A residential classification covers only residences built under the North Carolina Residential Code. A builder who wants to bid a small office building needs the building classification, not just residential.

How to get a North Carolina general contractor license

  1. Pick the limitation and classification based on the largest single project you plan to bid and the type of work.
  2. Prepare the financials or bond that match the limitation.
  3. Apply to the Board and pay the nonrefundable application fee: $75 limited, $100 intermediate, or $125 unlimited. Applicants must be at least 18 and may be asked to consent to a criminal background check.
  4. Pass the exam for your classification with a score of at least 70. The exam fee is up to $100. A company is licensed through the exam of a qualifying officer, member, or employee.
  5. Keep the qualifier in place. If the qualifying party leaves, the company must replace them within 90 days or the license becomes invalid.

Renewal and continuing education

Licenses expire January 1 each year and become invalid 60 days later if not renewed. Renewal fees are capped at the same amounts as the application fees, renewals received on or after January 1 carry a late fee, and each renewal must show continued financial responsibility. If a license goes unrenewed for four years, you start over with a new application and exam. For building, residential, and unclassified licenses, at least one qualifier must complete 8 hours of Board-approved continuing education a year: a 2-hour mandatory course plus 6 elective hours, with up to 4 elective hours carried forward.

Trade licenses and the license lookup

Electrical work falls under the State Board of Examiners of Electrical Contractors, and plumbing, heating, and fire sprinkler work under the State Board of Examiners of Plumbing, Heating, and Fire Sprinkler Contractors. A general contractor license does not cover those trades. To check a general contractor, use the Board's License Search at portal.nclbgc.org/Public/Search. Confirm the limitation as well as the status: a limited licensee on a $1.2 million job is working above its license. Track each subcontractor license the same way you track their insurance; Smart Business Automator keeps those records and expiration alerts in one place through subcontractor compliance automation.

Frequently asked questions

When do you need a general contractor license in North Carolina?

When you bid on, build, or manage a project costing $40,000 or more. Local building inspectors must see proof of the license before issuing a permit for work of that size.

What is the difference between limited, intermediate, and unlimited licenses?

They cap the value of any single project: limited up to $750,000, intermediate up to $1,500,000, and unlimited with no cap. Each requires a higher working capital figure or a larger surety bond.

How much does a North Carolina general contractor license cost?

The application fee is $75 for limited, $100 for intermediate, and $125 for unlimited, plus an exam fee of up to $100 and any background check cost. Annual renewal fees are capped at the same amounts.

Do North Carolina general contractors need continuing education?

Yes, for building, residential, and unclassified licenses. At least one qualifier must complete 8 hours a year, including a 2-hour mandatory course.

How do I look up a North Carolina contractor license?

Use the NCLBGC License Search at portal.nclbgc.org/Public/Search, linked from nclbgc.org. Check the limitation and classification, not just whether the license is active.

Sources

  1. NC Licensing Board for General Contractors: 2026 Laws and Regulations (G.S. Chapter 87 Article 1 and 21 NCAC 12), archived copy
  2. NC Licensing Board for General Contractors: Home page and license search
  3. NC Licensing Board for General Contractors: Find a Licensed Contractor

Laws and rates change. Confirm current requirements with the state agency before you bid, file, or pay. This page is general information, not legal advice.

Written and edited by

Maurice Francois writes and edits construction operations guides for Smart Business Automator. More from Maurice on the Scaling Legends podcast.

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