Classifications and limitations

License Classifications

Building Contractor

This classification covers all building construction and demolition activity including: commercial, industrial, institutional, and all residential building construction. It includes parking decks; all site work, grading and paving of parking lots, driveways, sidewalks, and gutters; storm drainage, retaining or screen walls, and hardware and accessory structures; and indoor and outdoor recreational facilities including natural and artificial surface athletic fields, running tracks, bleachers, and seating. It also covers work done under the specialty classifications of S(Concrete Construction), S(Insulation), S(Interior Construction), S(Marine Construction), S(Masonry Construction), S(Roofing), S(Metal Erection), S(Swimming Pools), and S(Asbestos), and S(Wind Turbine).

Residential Contractor

This classification covers all construction and demolition activity pertaining to the construction of residential units that are required to conform to the residential building code adopted by the Building Code Council pursuant to G.S. 143-138; all site work, drive – ways, sidewalks, and water and wastewater systems ancillary to the afore – mentioned structures and improvements; and the work done as part of such residential units under the specialty classifications of S(Insulation), S(Interior Construction), S(Masonry Construction), S(Roofing), S(Swimming Pools), and S(Asbestos).

Highway Contractor

This classification covers all highway construction activity including: grading, paving of all types, installation of exterior artificial athletic surfaces, relocation of public and private utility lines ancillary to a principal project, bridge construction and repair, culvert construction and repair, parking decks, sidewalks, curbs, gutters and storm drainage. It also includes installation and erection of guard rails, fencing, signage and ancillary highway hardware; covers paving and grading of airport and airfield runways, taxiways, and aprons, including the installation of fencing, signage, runway lighting and marking; and work done under the specialty classifications of S(Boring and Tunneling), S(Concrete Construction), S(Marine Construction), S(Railroad Construction), and H(Grading and Excavating).

Public Utilities Contractor

This classification includes operations that are the performance of construction work on water and wastewater systems and on the subclassifications of facilities set forth in G.S. 87-10(b)(3). The Board shall issue a license to a public utilities contractor that is limited to any of the subclassifications set forth in G.S. 87-10(b)(3) for which the contractor qualifies. A public utilities contractor license covers work done under the specialty classifications of S(Boring and Tunneling), PU(Communications), PU(Fuel Distribution), PU(Electrical-Ahead of Point of Delivery), PU(Water Lines and Sewer Lines), PU(Water Purification and Sewage Disposal), and S(Swimming Pools).

Specialty Contractor

This classification covers all construction operation and performance of contract work outlined here (link to Rule .0202).

License Limitations

Limited License

The holder of a limited license shall be entitled to act as general contractor for any single project with a value of up to five hundred thousand dollars ($500.000), excluding the cost of land and any ancillary costs to improve the land. (GS 87-10(a1)

The applicant for a limited license shall: (NCAC Title 21 Chapter 12.0204)

(1) meet the requirements set out in G.S. 87-10 and Section .0400 of this Chapter;

(2) have current assets that exceed the total current liabilities by at least seventeen thousand dollars ($17,000) or have a total net worth of at least eighty thousand dollars ($80,000);

(3) pass the examination which shall contain subject matter related to the specific contracting classification chosen by the applicant with a score as set out in Rule .0404 of this Chapter; and

(4) if the applicant or any owner, principal, or qualifier is in bankruptcy or has been in bankruptcy within five years prior to the filing of the application, provide to the Board an agreed-upon procedures report on a form provided by the Board or an audited financial statement with a classified balance sheet as part of the application. This requirement shall not apply to shareholders of an applicant that is a publicly traded corporation.

In lieu of demonstrating the level of working capital an applicant for a limited license may provide a $175,000 surety bond. Details for the bond requirements are highlighted in rule NCAC Title 21 Chapter 12.0204e

Intermediate License

The holder of an intermediate license shall be entitled to act as general contractor for any single project with a value of up to one million dollars ($1,000,000), excluding the cost of land and any ancillary costs to improve the land. (GS 87-10(a1)

The applicant for an intermediate license shall: (NCAC Title 21 Chapter 12.0204)

(1) meet the requirements set out in G.S. 87-10 and Section .0400 of this Chapter;

(2) have current assets that exceed the total current liabilities by at least seventy-five thousand dollars ($75,000), as reflected in an agreed-upon procedures report on a form provided by the Board or an audited financial statement prepared by a certified public accountant or an independent accountant who is engaged in the public practice of accountancy; and

(3) pass the examination which shall contain subject matter related to the specific contracting classification chosen by the applicant with a score as set out in Rule .0404 of this Chapter.

In lieu of demonstrating the level of working capital an applicant for an intermediate license may provide a $500,000 surety bond. Details for the bond requirements are highlighted in rule NCAC Title 21 Chapter 12.0204e

Unlimited License

The holder of an unlimited license shall be entitled to act as general contractor without restriction as to value of any single project. (GS 87-10(a)(1)

The applicant for an unlimited license shall: (NCAC Title 21 Chapter 12.0204)

(1) meet the requirements set out in G.S. 87-10 and Section .0400 of this Chapter;

(2) have current assets that exceed the total current liabilities by at least one hundred fifty thousand dollars ($150,000), as reflected in an agreed-upon procedures report on a form provided by the Board or an audited financial statement prepared by a certified public accountant or an independent accountant who is engaged in the public practice of accountancy;

(3) pass the examination which shall contain subject matter related to the specific contracting classification chosen by the applicant with a score as set out in Rule .0404 of this Chapter

In lieu of demonstrating the level of working capital an applicant for an unlimited license may provide a $1,000,000 surety bond. Details for the bond requirements are highlighted in rule NCAC Title 21 Chapter 12.0204e

Surety Bonds

(e) Surety Bonds. In lieu of demonstrating the level of working capital as required in Subparagraphs (c)(2) and (d)(2) of this Rule or net worth under Subparagraph (b)(2) of this Rule, an applicant may obtain a surety bond from a surety authorized to transact surety business in North Carolina pursuant to G.S. 58 Articles 7, 16, 21, or 22. The surety shall maintain a rating from A.M. Best, or its successor rating organization, of either Superior (A++ or A+) or Excellent (A or A-). The bond shall be continuous in form and shall be maintained in effect for as long as the applicant maintains a license to practice general contracting in North Carolina or until the applicant demonstrates the required level of working capital as required by Subparagraphs (c)(2) and (d)(2) of this Rule. The applicant shall submit proof of a surety bond meeting the requirements of this Rule with the application form and subsequent annual license renewal forms. The applicant shall maintain the bond in the amount of one hundred seventy-five thousand dollars ($175,000) for a limited license, five hundred thousand dollars ($500,000) for an intermediate license, and one million dollars ($1,000,000) for an unlimited license. The bond shall list the State of North Carolina as obligee and be for the benefit of any person who is damaged by an act or omission of the applicant constituting breach of a construction contract, breach of a contract for the furnishing of labor, materials, or professional services to construction undertaken by the applicant, or by an unlawful act or omission of the applicant in the performance of a construction contract. The bond required by this Rule shall be in addition to and not in lieu of any other bond required of the applicant by law, regulation, or any party to a contract with the applicant. Should the surety cancel the bond, the surety and the applicant both shall notify the Board within 30 days in writing. If the applicant fails to provide written proof of financial responsibility in compliance with this Rule within 30 days of the bond’s cancellation, then the applicant’s license shall be suspended until written proof of compliance is provided.