How to Become a North Carolina Home Building Contractor
In North Carolina, you must obtain an appropriate license from the N.C. Licensing Board for General Contractors (N.C.L.B.G.C.) to work as a general contractor on projects over $30,000 prior to presenting a bid. The Board offers several different types of licenses, and an exam is required for each. Licensing statutes, adopted "for the purpose of safeguarding life, health and property and to promote public welfare" apply as well. A contractor's license is not needed when an owner is constructing or altering a building provided that the building is located on the person's property and is being constructed for the purpose of use by the individual or entity solely.
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Things You'll Need
- Application fee
- Letter of Eligibility from the licensing board
- Examination fee
- Score of at least 70 on the examination
- License
Instructions
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Determine your appropriate license classification. The N.C.L.B.G.C. offers five different license classifications and an "unclassified" license that combines all of the privileges of the five categories. The classifications are building, residential, highway, public utilities and specialty. Once you determine the appropriate classification, send $15 and your contact information to the N.C.L.B.G.C. for a license packet.
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Choose one of the three limitations that will be set on your license based on your current financial stability. The three types of limitations that are offered by the Licensing Board are: limited (up to $500,000 per project), intermediate (up to $1 million per project) and unlimited (not restricted on value). Working capital (current assets less current liabilities) must be $17,000 to apply for a limited license, $75,000 for an intermediate license and $150,000 for an unlimited license. A surety bond can be used in lieu of providing proof of working capital provided the bond remains in effect for the duration of your licensing period.
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Pay the appropriate fee and file an application to take the exam required for your chosen classification. Fees are determined by the limitation that you requesting. The application fee for a limited license as of 2010 is $75; for an intermediate license it is $100; and, for an unlimited license it is $125. All fees are nonrefundable. Once completed, the application and fee must be returned to the N.C.L.B.G.C. along with six current letters of reference. If approved, you will be sent a Letter of Eligibility from the Board that will allow you 120 days to schedule and take the examination.
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Pay a $70 examination fee, schedule and take the test. All testing is administered by P.S.I. Examination Services at various times throughout the year and at one of their statewide testing locations that include Charlotte, Greenville, Raleigh, Fayetteville, Wilmington and Winston-Salem. Nationwide testing centers are available for non-residents of the state. The examination is given on computer, and you will know your results immediately.
To pass the exam, applicants must score 70 or higher. The test can be retaken if a passing grade is not achieved provided that 30 days has elapsed since the first test was administered. The applicant will be required to pay the exam fee of $70 for each subsequent test taken.
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Tips & Warnings
Many individuals choose to take a preparatory course to gain the knowledge required to pass the exam. The test is comprehensive and such a course can be helpful. Many preparation classes are now offered online and vary in cost, so practice due diligence to determine the course most suitable to your needs.
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Resources
- Photo Credit wood frame housing image by Daniel Gillies from Fotolia.com
