NORTH CAROLINA CONTRACTOR LICENSING EXAM – PRACTICE QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES 2026
Q&A | INSTANT DOWNLOAD PDF.
Core Domains
North Carolina General Statutes and Administrative Code
Business Law and Project Management
NC Occupational Safety and Health (OSHA) Standards
North Carolina State Building Codes
Estimating, Bidding, and Financial Management
Lien Laws and Contractual Requirements
Environmental Regulations and Lead Abatement
Licensing Board Rules and Regulations
Introduction
This comprehensive practice assessment is designed to prepare candidates for the
North Carolina Contractor Licensing Exam. The purpose of this exam is to ensure
that all applicants possess the fundamental knowledge and technical skills required to
operate safely and legally within the state’s construction industry. The assessment
,covers a wide array of topics, including state building codes, administrative laws,
financial management, and safety protocols. By utilizing a mix of standard multiple-
choice questions and complex scenario-based inquiries, the exam emphasizes real-
world application and critical decision-making. Mastery of these materials
demonstrates a candidate's readiness to manage construction projects while
maintaining compliance with North Carolina’s rigorous professional standards.
1. According to the North Carolina Licensing Board for General Contractors, what
is the minimum dollar value of a project that requires a general contractor's
license?
A. $15,000
B. $25,000
🟢 C. $30,000
D. $40,000
🔴 RATIONALE: North Carolina law requires a general contractor's license for any
person or entity that undertakes to bid upon or construct any building or project where
the cost of the undertaking is $30,000 or more.
2. Which of the following is a requirement for a contractor to maintain an
"unlimited" license in North Carolina?
,🟢 A. Minimum net worth of $150,000
B. Minimum net worth of $75,000
C. A bond of $500,000
D. At least 10 years of verified experience
🔴 RATIONALE: For an unlimited license classification in NC, the applicant must
demonstrate a minimum net worth or total equity of at least $150,000.
3. Under the North Carolina Mechanics' Lien Law, what is the timeframe for filing a
claim of lien on real property?
A. 30 days from the last date of furnishing labor or materials
B. 90 days from the last date of furnishing labor or materials
🟢 C. 120 days from the last date of furnishing labor or materials
D. 180 days from the last date of furnishing labor or materials
🔴 RATIONALE: A claim of lien on real property must be filed in the office of the clerk
of superior court in each county where the real property is located within 120 days of
the last date of furnishing labor or materials.
4. A contractor fails to provide a "Notice to Lien Agent" for a residential project.
What is the primary risk associated with this oversight?
, A. Immediate suspension of the contractor's license
B. A fine of $5,000 per day
🟢 C. Loss of priority for the contractor’s lien rights against certain third parties
D. The contract becomes automatically voidable by the owner
🔴 RATIONALE: Failure to provide notice to a designated lien agent can result in the
contractor losing priority against subsequent purchasers or lenders who record their
interests first.
5. When an employer in North Carolina has at least how many employees are they
generally required to carry Workers' Compensation insurance?
A. 1
B. 2
🟢 C. 3
D. 5
🔴 RATIONALE: In North Carolina, any business that employs three or more
employees (including corporate officers) is required by law to carry Workers'
Compensation insurance.
6. Which document is used to notify a subcontractor that they are being held
responsible for costs incurred by the general contractor due to the
AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES 2026
Q&A | INSTANT DOWNLOAD PDF.
Core Domains
North Carolina General Statutes and Administrative Code
Business Law and Project Management
NC Occupational Safety and Health (OSHA) Standards
North Carolina State Building Codes
Estimating, Bidding, and Financial Management
Lien Laws and Contractual Requirements
Environmental Regulations and Lead Abatement
Licensing Board Rules and Regulations
Introduction
This comprehensive practice assessment is designed to prepare candidates for the
North Carolina Contractor Licensing Exam. The purpose of this exam is to ensure
that all applicants possess the fundamental knowledge and technical skills required to
operate safely and legally within the state’s construction industry. The assessment
,covers a wide array of topics, including state building codes, administrative laws,
financial management, and safety protocols. By utilizing a mix of standard multiple-
choice questions and complex scenario-based inquiries, the exam emphasizes real-
world application and critical decision-making. Mastery of these materials
demonstrates a candidate's readiness to manage construction projects while
maintaining compliance with North Carolina’s rigorous professional standards.
1. According to the North Carolina Licensing Board for General Contractors, what
is the minimum dollar value of a project that requires a general contractor's
license?
A. $15,000
B. $25,000
🟢 C. $30,000
D. $40,000
🔴 RATIONALE: North Carolina law requires a general contractor's license for any
person or entity that undertakes to bid upon or construct any building or project where
the cost of the undertaking is $30,000 or more.
2. Which of the following is a requirement for a contractor to maintain an
"unlimited" license in North Carolina?
,🟢 A. Minimum net worth of $150,000
B. Minimum net worth of $75,000
C. A bond of $500,000
D. At least 10 years of verified experience
🔴 RATIONALE: For an unlimited license classification in NC, the applicant must
demonstrate a minimum net worth or total equity of at least $150,000.
3. Under the North Carolina Mechanics' Lien Law, what is the timeframe for filing a
claim of lien on real property?
A. 30 days from the last date of furnishing labor or materials
B. 90 days from the last date of furnishing labor or materials
🟢 C. 120 days from the last date of furnishing labor or materials
D. 180 days from the last date of furnishing labor or materials
🔴 RATIONALE: A claim of lien on real property must be filed in the office of the clerk
of superior court in each county where the real property is located within 120 days of
the last date of furnishing labor or materials.
4. A contractor fails to provide a "Notice to Lien Agent" for a residential project.
What is the primary risk associated with this oversight?
, A. Immediate suspension of the contractor's license
B. A fine of $5,000 per day
🟢 C. Loss of priority for the contractor’s lien rights against certain third parties
D. The contract becomes automatically voidable by the owner
🔴 RATIONALE: Failure to provide notice to a designated lien agent can result in the
contractor losing priority against subsequent purchasers or lenders who record their
interests first.
5. When an employer in North Carolina has at least how many employees are they
generally required to carry Workers' Compensation insurance?
A. 1
B. 2
🟢 C. 3
D. 5
🔴 RATIONALE: In North Carolina, any business that employs three or more
employees (including corporate officers) is required by law to carry Workers'
Compensation insurance.
6. Which document is used to notify a subcontractor that they are being held
responsible for costs incurred by the general contractor due to the
