Getting a North Carolina general contractor license is a multi-step process with two gatekeepers: the North Carolina Licensing Board for General Contractors decides your eligibility, and PSI administers the exam. Here is the full path, in order, with the exact figures from the statutes and the PSI bulletin (revised 2025-11-19).
Step 1: Confirm you need the license
You need a license when you undertake to bid, construct, superintend, or manage a construction project where the cost of the undertaking is $40,000 or more (G.S. 87-1(a)). Below $40,000, no general contractor license is required; separate trade licenses (electrical, plumbing, HVAC) still apply to their own work. Exemptions cover owner-builders on their own land (with a 12-month non-occupancy presumption), farmers building on their own farmland, and specified industrial equipment. If your work is at or above $40,000, keep going.
Step 2: Choose your classification and tier
The classification is what you build. The PSI Building Contractor Examination qualifies you for the Building classification, which covers all building types including residential. Other classifications include Residential, Highway, Public Utilities (with five subclassifications), Specialty, and Board-added Unclassified. Full details are in our guide to the NC license classifications.
The tier is how big a project you may take per single project (excluding land cost): Limited up to $750,000, Intermediate up to $1,500,000, Unlimited with no cap. Choose the tier that matches the work you will actually bid.
Step 3: Meet the application prerequisites
Under G.S. 87-10(a), the applicant must be at least 18 years old, show good moral character as determined by the Board, show evidence of financial responsibility, pay the application fee, and consent to a criminal background check if required.
Step 4: Show financial responsibility
Each tier has a working-capital requirement (current assets over current liabilities): $17,000 for Limited, $75,000 for Intermediate (shown by a CPA agreed-upon procedures report or audited statement), and $150,000 for Unlimited (same CPA standard). Statements must be no older than 12 months and conform to GAAP.
The alternative is a continuous surety bond: $175,000 (Limited), $500,000 (Intermediate), $1,000,000 (Unlimited), from a surety authorized in North Carolina with an A.M. Best rating of A++, A+, A, or A-. One important note: a secondary source reports an $80,000 total-net-worth alternative for Limited, but it is corroborated, not confirmed in the rule text reviewed, so do not treat it as settled.
Step 5: Pass the exam
Once the Board determines your eligibility, you receive an Eligibility Letter valid for 120 days for one attempt, and you schedule through PSI. The Building Contractor exam is 90 questions, 70 percent to pass (63 correct), 200 minutes, open book, and the fee is $79 per attempt. The bulletin lists 18 allowed references; learn the open-book strategy before you sit, because tabbing your books is half the test.
One caveat: the same PSI bulletin also lists a separate 40-question Business and Law exam, but who must take it is not confirmed from primary sources. The Board is the authority on whether it applies to you; on the standard Building path, business and law content is embedded in the 90-question exam.
Step 6: Keep the license
A license expires on January 1 following issuance or renewal and becomes invalid 60 days later unless renewed; late renewal costs $10 per month or part of a month after January. At least one qualifier of a building, residential, or unclassified licensee must complete 8 hours of continuing education annually (2 mandatory plus 6 elective), with up to 4 elective hours carrying forward and a 90-day grace period after the November 30 CE-year end.
If your qualifier leaves, the license survives 90 days and then is automatically invalidated; during the window you may not bid or take new contracts, and you must notify the Board in writing within 10 days. One person may qualify no more than 2 licenses, and a non-owner qualifier must be a W-2 employee, never an independent contractor.
Report changes fast: ownership or corporate-structure changes, address/phone/email changes, and business name changes each get 30 days; criminal convictions or other-agency discipline get 60 days on the Board form; bankruptcy petitions get a copy to the Board within 30 days of filing.
The full cost picture
Direct Board and PSI fees for a first-time Limited applicant are $79 (exam) plus $75 (license), or $154. Add the 18-reference library, the annual CE course, and either balance-sheet capital or a surety bond premium. Our cost breakdown walks through every line item.
This is an independent study aid, not affiliated with the North Carolina Licensing Board for General Contractors, PSI, or NASCLA. Statutes, rules, and fees change; verify every step against the current PSI bulletin and Board requirements before you apply.
Try the free practice quiz
Want to see where you stand right now? Take the free 12-question North Carolina Building Contractor practice quiz. You will get your score with explanations for every answer, so you can see exactly which topics need work. Start the free quiz