NC General Contractor study materials
NC General Contractor study resources

NC General Contractor flashcards

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32 cards. Read the term and the definition here. The deck at the top of this page is optional.

General contractor license threshold
In North Carolina, a general contractor license is required for projects costing $30,000 or more, measured by the total cost of labor, materials, and subcontracts for the undertaking.
License classifications
NC general contractor licenses are issued as Limited (up to $750,000), Intermediate (up to $1,500,000), or Unlimited, and in categories such as building, highway, public utilities, or specialty residential.
Qualifier requirement
A licensed entity must designate a qualifier who exercises direct supervision over construction work; the license belongs to the business entity, not to the individual qualifier personally.
Minimum net worth
Applicants must demonstrate net worth of $17,000 for Limited, $75,000 for Intermediate, and $150,000 for Unlimited classification to qualify for a general contractor license.
Unlicensed contracting consequences
Contracting above the $30,000 threshold without a license is a misdemeanor, and the unlicensed contractor generally cannot enforce the contract in court.
Continuing education requirement
Licensed general contractors must complete 8 hours of continuing education annually, including 2 hours covering North Carolina licensing laws and rules, before license renewal.
License renewal deadline
North Carolina general contractor licenses expire annually on December 31 and must be renewed with proof of continuing education to remain active.
Bidding without a license
Offering to contract or submitting a bid for work above the $30,000 threshold without a license is a violation of NC licensing law even if no contract results.
Retainage on public projects
North Carolina public construction contracts generally limit retainage to 5% of each progress payment, with withheld amounts released after final acceptance and resolution of claims.
Critical path method
CPM identifies the longest-duration sequence of dependent activities through a project network; delay on that path delays project completion unless float is available.
Total float formula
Total float equals late start minus early start, or equivalently late finish minus early finish, for an activity in a project schedule network.
Change order valuation
A change order price equals added direct cost plus allowable overhead and profit plus any time extension; subcontractor markup limits are governed by the prime contract terms.
Lien filing deadline
In North Carolina, a claim of lien generally must be filed within 120 days after the claimant last furnished labor, materials, or services on the project.
Notice to Lien Agent
A subcontractor must give written Notice to the Lien Agent within 15 days after first furnishing labor, materials, or services on a project with a registered lien agent.
Earned value formulas
Cost variance equals EV minus AC; schedule variance equals EV minus PV; cost performance index equals EV divided by AC; schedule performance index equals EV divided by PV.
Competent person
Under OSHA 29 CFR 1926, a competent person is capable of identifying hazards and authorized to take prompt corrective action, required for excavations, scaffolding, and fall protection.
Footing depth requirement
Footings must extend below the frost line, and their minimum width and thickness are determined by code tables based on soil bearing capacity and wall load.
Joist notching limits
Wood floor joists may not be notched in the middle third of the span, and end notches are limited to one-quarter of the joist depth.
Egress window dimensions
Sleeping room egress windows require at least 5.7 square feet net clear opening, minimum 20 inches width, 24 inches height, and sill no more than 44 inches above floor.
Stairway dimensions
Stairways require a minimum 36-inch width, maximum 7-3/4 inch riser, minimum 10-inch tread, and a maximum vertical rise of 12 feet 3 inches between landings.
Guardrail requirements
Guardrails are required at open sides of walking surfaces more than 30 inches above grade, must be at least 36 inches high, and balusters must reject a 4-inch sphere.
Concrete foundation strength
Foundation concrete typically requires a minimum compressive strength of 2,500 psi, with reinforcement and vapor retarder specified by code and project design.
NC State Building Code
North Carolina adopts the International Code family with state amendments; local governments may adopt only limited amendments authorized by statute.
Wind-borne debris region
Coastal North Carolina wind-borne debris regions impose enhanced wind uplift resistance and impact protection requirements on roofing and glazing under the state building code.
Written contract requirement
Residential construction contracts over $30,000 must be in writing, include the contractor's license number, and disclose the homeowner's three-day cancellation right.
Three-day cancellation right
A homeowner may cancel a residential construction contract within three days when signed at a location other than the contractor's place of business, if properly disclosed.
Homeowner Recovery Fund
North Carolina's Homeowner Recovery Fund may compensate homeowners for certain losses caused by licensed general contractors, subject to statutory caps and claim procedures.
Conditional lien waiver
A conditional lien waiver becomes effective only upon actual receipt of the stated payment; it does not release rights if payment is not received.
Unconditional lien waiver
An unconditional lien waiver is effective upon signing regardless of whether payment has been received, so it should be signed only after payment clears.
Substantial completion warranty
Substantial completion starts warranty periods; workmanship is typically warranted for one year, with longer periods for structural or latent defects by contract or statute.
Progress payment support
A progress payment application should include a schedule of values, lien waivers, and certification that completed work and stored materials match the amount requested.
Unfair trade practices
North Carolina G.S. Chapter 75 prohibits unfair or deceptive trade practices by contractors and can support treble damages for affected consumers.