NC General Contractor cheat sheet
NC General Contractor · Keep the key ideas within reach.
General Contracting Licensing Law and Regulations
North Carolina general contractor licensing is administered by the NC Licensing Board for General Contractors (NCLBGC), created under G.S. Chapter 87, Article 1.
A general contractor license is required when the project cost is $30,000 or more; the threshold applies to the total cost of the undertaking, including labor, materials, and subcontracts.
License classifications: Limited (projects up to $750,000), Intermediate (up to $1,500,000), and Unlimited (no cap); a license may be held in building, highway, public utilities, or specialty residential categories.
Applicants must show minimum net worth tied to classification: Limited $17,000, Intermediate $75,000, and Unlimited $150,000.
Qualifying exams cover NC licensing law and the technical/business content appropriate to the license classification applied for.
A licensed general contractor must designate a qualifier who exercises direct supervision; the license is issued to the entity, not the individual qualifier.
Unlicensed contracting above the threshold is a misdemeanor, and contracts entered without a required license are generally unenforceable by the contractor in court.
Licenses renew annually by December 31; continuing education of 8 hours per year is required, including 2 hours of NC licensing laws and rules.
Bidding or offering to contract for work above the threshold without a license is itself a violation, even if no contract is signed.
Business and Project Management
Retainage on NC public projects is generally capped at 5% of each progress payment; withheld funds are released after final acceptance and satisfaction of claims.
Critical path method (CPM) identifies the longest duration path through the network; any delay on that path delays project completion unless float is consumed.
Total float = late start minus early start (equivalently late finish minus early finish) for an activity.
Change order value = added direct cost + allowable overhead and profit + applicable time extension; markup on subcontractor change work is limited by contract terms.
Lien rights in NC generally require a claim of lien filed within 120 days after the last furnishing of labor or materials on the project.
A subcontractor's Notice to Lien Agent must be given within 15 days after first furnishing labor, materials, or services on a project with a registered lien agent.
Earned value: CV = EV - AC; SV = EV - PV; CPI = EV/AC; SPI = EV/PV.
Safety compliance is driven by OSHA 29 CFR 1926; the competent person designation is required for excavation, scaffolding, and fall-protection oversight.
A project schedule update should reflect actual progress, remaining durations, and approved changes; unapproved acceleration is not a compensable time impact.
Building Construction and Technical Standards
The NC State Building Code adopts the International Code family (IBC, IRC, IMC, IPC, IECC, NEC) with NC amendments; local amendments are limited by statute.
Footing depth must extend below the frost line; NC minimum footing width and thickness are set by the code tables based on soil bearing and wall load.
Wood frame floor joists must be sized per span tables; notching limits: no notch in the middle third of a joist, and end notches limited to one-quarter of depth.
Bearing wall studs are typically 2x4 at 16 inches o.c. maximum; headers over openings must be sized per the code span tables.
Egress windows in sleeping rooms require a minimum net clear opening of 5.7 square feet, minimum width 20 inches, minimum height 24 inches, and sill height no more than 44 inches above the floor.
Stairways: minimum 36-inch width, maximum 7-3/4 inch riser, minimum 10-inch tread, and maximum 12-foot-3-inch vertical rise between landings.
Guardrails are required at open sides of walking surfaces more than 30 inches above grade; minimum height 36 inches with balusters spaced so a 4-inch sphere cannot pass.
Concrete compressive strength for foundations is typically 2,500 psi minimum; slab-on-grade steel reinforcement and vapor retarder are specified by code and design.
Roof sheathing and framing must resist design loads; wind uplift requirements in coastal NC are governed by the wind-borne debris region provisions.
Contract Administration and Consumer Protection
NC requires written contracts for residential construction over $30,000 that include the contractor's license number and the statutory three-day right to cancel.
The three-day cancellation right applies to contracts signed at a location other than the contractor's place of business, and notice must be given in the contract.
Homeowner recovery is available through the NC Homeowner Recovery Fund for losses caused by licensed general contractors, subject to statutory caps and claim procedures.
Lien waivers: a conditional waiver is effective upon payment; an unconditional waiver is effective upon signing regardless of payment.
Substantial completion triggers warranty periods; the typical one-year warranty covers workmanship, with longer periods for structural and latent defects by contract or statute.
Progress payment applications should be supported by a schedule of values, lien waivers, and certification that work is complete and materials stored.
A contractor must provide the owner with a written statement of the lien agent designation and the owner's obligation to notify the lien agent of any claim.
Dispute resolution clauses must be conspicuous; arbitration clauses are enforceable but do not waive statutory lien rights unless expressly stated.
Consumer protection claims may arise under G.S. Chapter 75 for unfair or deceptive trade practices, which can support treble damages.