NC General Contractor study materials
NC General Contractor study resources

NC General Contractor cheat sheet

NC General Contractor · Keep the key ideas within reach.

Quick reference

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.

Quick reference

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.

Quick reference

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.

Quick reference

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.