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Quick Facts
- Exam
- NC General Contractor
- Board
- NCLBGC
- Vendor
- PSI Exams
- Format
- Open book (approved refs)
- Business & Law
- 40 Q / 90 min
- Trade Exam
- 90 Q / 200 min
- Pass Score
- 70% each exam
- License Threshold
- $40,000+ per project
- Classifications
- 5 license types
- Building Code
- 2018 (until Jul 2026)
License Classifications
Building, Residential, Highway, Utilities, Specialty
B: broadest scopeR: homes onlyH: roads and bridgesPU: water and sewerS: single trade only
Limited vs Unlimited License
Limited
- $750K project cap
- $17K working capital
- $175K bond alternative
Unlimited
- No project cap
- $150K working capital
- $1M bond alternative
Cap grows with capital
License Class Picker
- Only build homes→Residential Contractor(Homes only)
- Any building type→Building Contractor(Broadest scope)
- Roads or bridges→Highway Contractor(Highway scope)
- Water or sewer work→Public Utilities Contractor(5 subclasses)
- One specialty trade→Specialty Contractor(Narrow scope)
- Project under $40,000→No license needed(Below threshold)
License Classifications
- Building
- All building construction types
- Residential
- Homes and residential work
- Highway
- Roads, bridges, airport runways
- Public Utilities
- Water, sewer, power, gas
- Specialty
- Specialized trade-only work
License Limitations
Limited < Intermediate < Unlimited
Limited: $750K, $17K capitalIntermediate: $1.5M, $75K capitalUnlimited: no cap, $150K capital
Performance Bond vs Payment Bond
Performance Bond
- Protects the owner
- Guarantees job completion
- Covers finishing costs
Payment Bond
- Protects subs and suppliers
- Guarantees they get paid
- Covers unpaid invoices
Owner risk vs sub risk
License Limit Picker
- Project under $750K→Limited license($17K working capital)
- Project under $1.5M→Intermediate license($75K working capital)
- No project cap needed→Unlimited license($150K working capital)
- Can't show net worth→Surety bond(Meets capital alternative)
License Limitations
- Limited
- $750K project cap
- Intermediate
- $1.5M project cap
- Unlimited
- No project value cap
- Limited Capital
- $17K working capital
- Limited Bond Alt
- $175K surety bond
Lien & Payment Clock
7 days pay | 120 days lien | 180 days sue
7 days: pay sub after receipt120 days: file and serve lien180 days: deadline to enforce lien
Lien vs Bond Claim
Mechanics Lien
- Attaches to real property
- 120-day filing deadline
- Private project remedy
Bond Claim
- Claims against surety bond
- Used on public projects
- No property attachment
Property vs bond remedy
Bond Type Picker
- Owner wants completion guaranteed→Performance bond
- Subs want payment guaranteed→Payment bond
- Local project over $300K→Bond required(Little Miller Act)
- State project over $500K→Bond required(State threshold)
Licensing Thresholds
- Project Threshold
- $40,000+ requires a license
- Unlicensed Contracting
- Class 1 misdemeanor
- Qualifier
- Exam-passer supervising the license
- NASCLA Credit
- Accepted for Building only
Building vs Residential Classification
Building
- All building types
- Broadest classification scope
- Covers commercial work
Residential
- Homes only
- Narrower classification scope
- No commercial work
Broad vs homes-only scope
Lien Timeline Picker
- Last furnished labor materials→Start 120-day clock(File and serve lien)
- First furnish on lien-agent job→Notice within 15 days(Protects lien rights)
- Lien filed and served→180 days to enforce(File lawsuit)
- Payment received by prime→Pay sub in 7 days(GS 22C-3)
Lien Law
- Lien Deadline
- 120 days last furnishedGS 44A
- Lien Enforcement
- 180 days to sue
- Lien Agent Notice
- 15 days after first furnish
- Claim of Lien
- Filed with Clerk of Court
Bonds & Insurance
- Performance Bond
- Guarantees project completion
- Payment Bond
- Guarantees sub and supplier pay
- Local Bond Trigger
- $300K contract threshold
- State Bond Trigger
- $500K contract threshold
- Workers Comp
- Required by state law
Fees
- Application
- $75 to $125 tiered
- Exam Fee
- $100 per attempt
- License Fee
- $279 after passing
- Renewal
- $75 annually
Contract Pricing Types
Lump Sum | Cost-Plus | Unit Price | GMP
Lump sum: fixed total priceCost-plus: cost plus a feeUnit price: price per unitGMP: capped maximum price
Mediation vs Arbitration
Mediation
- Non-binding
- Neutral facilitator only
- Parties keep control
Arbitration
- Binding decision
- Arbitrator decides outcome
- Limited appeal rights
Suggests vs decides
Contract Types
- Lump Sum
- Fixed total price
- Cost-Plus
- Cost plus a fee
- Unit Price
- Price per measured unit
- Time & Materials
- Labor plus materials billed
- GMP
- Guaranteed maximum price cap
Subcontractor Payment
- Payment Deadline
- 7 days after receiptGS 22C
- Late Interest
- 1% per month
- Pay-if-Paid
- Unenforceable in NC
- Retainage Cap
- Matches owner's retainage rate
Change Orders & Disputes
- Change Order
- Written scope or price change
- Claim
- Formal dispute notice
- Mediation
- Non-binding, neutral facilitator
- Arbitration
- Binding, private decision-maker
- Litigation
- Court-based dispute resolution
OSHA Trigger Heights
Fall 6ft | Cave-in 5ft | Egress 4ft
6ft: fall protection required5ft: trench protective system4ft: trench safe egress needed
Fall Protection vs Trench Cave-In
Fall Protection
- Triggers at 6 feet
- Guardrails, nets, or PFAS
- Open-sided or edge work
Cave-In Protection
- Triggers at 5 feet
- Sloping, shoring, or shielding
- Trench and excavation work
Height differs by hazard type
Fall & Trench Safety
- Fall Protection
- Triggers at 6 feetOSHA
- Excavation Edge
- Barricade at 6 feet
- Trench Cave-In
- Protection at 5 feet
- Trench Egress
- Ladder needed at 4 feet
- Open Excavation
- Cover or barricade required
Building Code & Permits
- NC Building Code
- 2018 edition current
- 2024 Code
- Effective July 31 2026
- Permit
- Required before construction starts
- Inspection
- Required at code milestones
- Sedimentation Control
- Erosion plan required
Employee vs Subcontractor
Employee
- W-2 wages
- Employer withholds taxes
- Employer controls the work
Subcontractor
- 1099 payment
- Self-pays taxes
- Controls own methods
Control test decides status
Delivery Method Picker
- Want one point of contact→Design-Build(Single contract)
- Want separate design control→Design-Bid-Build(Two contracts)
- Need price guarantee early→CM at Risk(GMP contract)
- Small single-trade scope→Direct subcontract(No GC layer)
Estimating & Scheduling
- Takeoff
- Quantities from plans and specs
- Bid
- Price offer to owner
- CPM Schedule
- Critical path method
- Gantt Chart
- Bar chart timeline
- Float
- Schedule slack time
Design-Bid-Build vs Design-Build
Design-Bid-Build
- Separate design and build
- Two contracts, sequential phases
- Owner holds both contracts
Design-Build
- One firm, both roles
- Single contract, overlapping phases
- Faster overall delivery
Split vs single responsibility
Delivery & Roles
- Design-Bid-Build
- Separate, sequential contracts
- Design-Build
- One firm, both roles
- CM at Risk
- CM guarantees the price
- Superintendent
- On-site daily supervision
- Subcontractor
- Hired for specialty trade
Accrual vs Cash Accounting
Accrual
- Records when earned or incurred
- Matches income to expenses
- Required for larger contractors
Cash
- Records when cash moves
- Simpler for small contractors
- Common for very small firms
Timing of recognition differs
Business Finance
- Accrual Accounting
- Records when earned or incurred
- Cash Accounting
- Records when cash moves
- Retainage
- Withheld percent until completion
- Overhead
- Indirect business costs
- Net Worth
- Assets minus liabilities
Taxes & Payroll
- Sales Tax
- Charged on materials
- 1099
- Independent contractor reporting
- W-2
- Employee wage reporting
- Payroll Tax
- Employer withholding requirement
- Financial Statement
- CPA-prepared for higher tiers
Common Traps
Limitation vs Classification
Limitation = dollar cap tier ≠ Classification = work type
NASCLA Covers Trade Exam Only
NASCLA replaces trade exam ≠ Business & Law still required
Cave-In vs Fall Protection
Cave-in triggers at 5ft ≠ Fall protection triggers at 6ft
Lien Deadline vs Enforcement
File lien within 120 days ≠ Enforce lien within 180 days
Performance vs Payment Bond
Performance protects the owner ≠ Payment protects subs, suppliers
Pay-if-Paid Clauses Unenforceable
NC bans pay-if-paid clauses ≠ Owner nonpayment isn't a defense
Public Bond Thresholds Differ
Local bond triggers at $300K ≠ State bond triggers at $500K
Accrual vs Cash Basis
Accrual records when earned ≠ Cash records when received
Last Minute
- 1.Classifications: Building, Residential, Highway, Utilities, Specialty
- 2.Limited license caps at $750K
- 3.Intermediate license caps at $1.5M
- 4.Unlimited license has no cap
- 5.$40,000+ project value needs license
- 6.NASCLA covers Building trade exam only
- 7.Business & Law exam still required
- 8.Both exams: 70% passing, open book
- 9.Lien deadline: 120 days last furnished
- 10.Lien enforcement: 180 days to sue
- 11.Pay subs within 7 days received
- 12.Pay-if-paid clauses are unenforceable in NC
- 13.Fall protection triggers at 6 feet
- 14.Trench cave-in protection starts at 5ft
- 15.2018 NC Building Code is current
- 16.2024 code takes effect Jul 31
- 17.Local public bonds trigger at $300K
- 18.State public bonds trigger at $500K
- 19.Employees get W-2s, subs get 1099s
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