ND General Contractor key terms

A credential issued by the state board authorizing a person or business to contract for construction work above statutory cost thresholds; holding one is required before bidding or signing most construction contracts.

The individual who passes the licensing exam and whose experience and qualifications support a contractor's license, whether an owner, officer, or designated employee of the licensed entity.

An officer or owner of a licensed business entity who actively supervises construction operations and meets the board's experience and examination requirements for the license.

A designation on a contractor license identifying the type and scope of work authorized, such as general building, engineering, or specialty trade categories, which limits what contracts the licensee may lawfully perform.

An added authorization on an existing license permitting additional categories of work, often granted after supplemental examination or experience review without issuing a separate license.

A surety bond filed with the licensing board as a condition of licensure, providing a fund from which injured consumers may recover certain damages caused by licensee violations.

Performing construction work that legally requires a license without holding a valid one, exposing the contractor to criminal penalties, contract unenforceability, and loss of lien rights.

The periodic process of maintaining an active license by paying fees, submitting continuing education proof, and updating business information before the expiration date to avoid lapse.

Mandatory coursework licensees must complete within each renewal cycle, covering topics such as business law, safety, and code updates, verified by certificates submitted to the board.

A temporary revocation of the privilege to contract, imposed by the board for violations or failure to maintain requirements, during which the licensee may not lawfully enter new contracts.

The permanent termination of a contractor license by board order, typically after serious or repeated violations, requiring reapplication and full requalification to obtain a new license.

The filing of formation documents with the Secretary of State to create a corporation, limited liability company, or partnership recognized as a legal entity authorized to do business.

The document filed with the Secretary of State to form a limited liability company, stating its name, registered agent, and management structure, and marking the entity's legal existence.

The charter document filed with the Secretary of State to create a corporation, identifying the corporation's name, purpose, share structure, and initial registered agent and incorporators.

A person or commercial service designated to receive legal process and official notices on behalf of a business entity, required to have a physical street address within the state.

The process by which a business formed in another state registers with the Secretary of State to transact business locally, including filing an application and appointing a registered agent.

A yearly filing with the Secretary of State updating an entity's officers, addresses, and business status; failure to file can result in administrative dissolution or loss of good standing.

A Secretary of State document confirming that an entity exists, has paid required fees, and is current on filings, often required for licensing, financing, or contract awards.

An internal contract among LLC members governing ownership percentages, voting, profit distribution, and management, which does not need to be filed with the state.

The internal rules adopted by a corporation's board and shareholders covering meetings, officer duties, share transfers, and recordkeeping; they are kept by the company rather than filed publicly.

The filing of an assumed or fictitious business name with the state or county so the public can identify the true owner operating under a name different from the legal entity name.

A statutory claim recorded against real property by a contractor, subcontractor, or supplier who furnished labor or materials and was not paid, creating a secured interest in the improved property.

A written notice early in a project warning the owner and lender that a claimant may later record a lien; failure to serve it can forfeit lien rights in many jurisdictions.

The statutory period within which a claimant must record a mechanics lien after last furnishing labor or materials, varying by state and by whether a notice of completion was filed.

A document by which a claimant gives up lien rights, either conditionally upon payment or unconditionally upon receipt, commonly exchanged at each progress or final payment.

A lawsuit to enforce a recorded mechanics lien, seeking a court order to sell the property and satisfy the unpaid debt from proceeds, subject to strict filing deadlines.

A notice served on a construction lender or owner directing them to withhold funds from the borrower or contractor to cover a claimant's unpaid work, an alternative to a mechanics lien.

A broad statutory security interest in real property or improvements securing payment for construction services, encompassing mechanics liens and similar supplier claims.

A filing with the Secretary of State giving public notice that a secured party holds an interest in a debtor's personal property, such as equipment, inventory, or accounts receivable.

The contract between a debtor and secured lender granting the lender an interest in specified personal property as collateral, which must be authenticated to be enforceable.

A security interest granted to a lender or seller who advances funds enabling the debtor to acquire collateral, enjoying priority over earlier filings if perfected within statutory time limits.

A formal allegation filed with the licensing board asserting that a contractor violated licensing law, contract standards, or building codes, triggering board investigation and possible discipline.

A formal notice of violation issued by the board or registrar specifying the alleged conduct, the statute violated, and the penalty or corrective action required.

A quasi-judicial proceeding before an administrative law judge or board panel where evidence on a complaint is presented and a decision on discipline or penalties is rendered.

A directive issued by a building official or licensing authority halting construction at a site because of code violations, missing permits, or unlicensed activity until the problem is corrected.

The formal delivery of legal documents, such as a summons and complaint, to a party or its registered agent, which starts the clock for responding in litigation.

A statutory fund, financed by licensee assessments, from which homeowners may recover unpaid judgments against licensed contractors who caused damages and cannot pay.

A sanction imposed by the licensing board on a contractor, ranging from a reprimand or fine to probation, suspension, or revocation, and recorded on the licensee's public history.