North Carolina (NC) "H" Grading & Excavating
Contractor Exam 250 Practice Multiple Choice Questions,
answers & rationales | latest update | instant download
Core study references include: NC General Statutes Chapter 87; NC Sedimentation Pollution
Control Act (GS Chapter 113A); OSHA 29 CFR 1926 Subpart P (Excavations); NCDOT
Standard Specifications for Roads and Structures; NC Underground Damage Prevention Act
(GS Chapter 87, Article 8); NC E&SC Planning and Design Manual; and NC Administrative
Code Title 21, Chapter 12.
SECTION 1: NC LICENSING, LAWS & REGULATIONS (Questions 1–40)
1. In North Carolina, the "H" classification for Grading and Excavating contractors is
issued by which licensing authority?
A) NC Department of Labor B) NC Department of Environmental Quality C) NC Licensing
Board for General Contractors (NCLBGC) (correct answer) D) NC Secretary of State
Rationale: The North Carolina Licensing Board for General Contractors administers the "H"
(Grading) classification as a specialty classification under the NC General Contractor licensing
structure. Contractors performing grading and excavating work above certain thresholds must
hold this license.
2. The North Carolina General Contractor license law is found in:
A) NC General Statutes Chapter 89A B) NC General Statutes Chapter 87, Article 2 C) NC
General Statutes Chapter 87, Article 1 (correct answer) D) NC Administrative Code Title 21,
Chapter 50
Rationale: NC General Statutes Chapter 87, Article 1 governs the licensing of general
contractors in North Carolina, including all specialty classifications such as the "H" Grading
and Excavating classification.
3. Which of the following projects would require a licensed "H" Grading contractor in
North Carolina?
,A) Raking leaves from a residential yard B) Planting shrubs in a residential garden C) Painting a
commercial building exterior D) Grading a site for a commercial parking lot with a contract
value exceeding the license threshold (correct answer)
Rationale: Grading and excavating work with contract values exceeding the NCLBGC threshold
requires a licensed "H" Grading contractor. Landscape maintenance and painting do not
require this classification.
4. The minimum contract dollar amount that requires a General Contractor license in
North Carolina is:
A) $10,000 B) $20,000 C) $30,000 (correct answer) D) $50,000
Rationale: In North Carolina, any construction contract or project with a value of $30,000 or
more requires the contractor to hold a valid NC General Contractor license. This threshold
applies to the "H" classification as well.
5. The NC Licensing Board for General Contractors is composed of how many members?
A) 5 B) 7 C) 9 (correct answer) D) 11
Rationale: The NCLBGC is composed of nine members appointed by the Governor. The board
includes licensed contractors and public members representing the interests of consumers and
the public.
6. To qualify for an "H" Grading & Excavating license in NC, an applicant must
demonstrate:
A) A minimum of 10 years of field experience B) A college degree in civil engineering C)
Financial responsibility, good moral character, and passing the required examination
(correct answer) D) Membership in the Associated General Contractors of America
Rationale: NC law requires applicants for contractor licenses to demonstrate financial
responsibility (through a financial statement), good moral character, and competency by
passing the applicable examination administered by the Board.
7. Which license limit classification in NC allows a contractor to bid on projects with NO
upper dollar limit?
,A) Limited B) Intermediate C) Unlimited (correct answer) D) Specialty
Rationale: NC General Contractor licenses are issued at three financial limit levels: Limited (up
to $500,000 per project), Intermediate (up to $1,000,000), and Unlimited (no cap). The
unlimited license allows bidding on projects of any dollar value.
8. How often must a North Carolina General Contractor license be renewed?
A) Every six months B) Every year C) Every two years (correct answer) D) Every three years
Rationale: NC General Contractor licenses must be renewed biennially (every two years).
License holders must pay the renewal fee and certify that they continue to meet the requirements
for licensure.
9. If an "H" Grading contractor's license lapses in NC, they must:
A) Continue working until the next renewal cycle B) Apply for a new license immediately
without re-examination C) Pay a late fee within 30 days and continue working D) Cease
performing licensed work until the license is reinstated (correct answer)
Rationale: A lapsed license is not a valid license. Performing work requiring a license while the
license is lapsed is unlicensed contracting, which is illegal in NC. The contractor must reinstate
the license before resuming licensed work.
10. Under NC law, who may use the title "Licensed General Contractor" for grading
work?
A) Anyone who has completed a grading project B) Any business registered with the NC
Secretary of State C) Any person with 5 years of grading experience D) Only persons or
entities holding a valid, current NCLBGC license (correct answer)
Rationale: NC law reserves the title "Licensed General Contractor" for those who hold a valid
license issued by the NCLBGC. Misrepresentation of licensure status is a violation of NC law
and may result in penalties.
11. The NCLBGC examination for the "H" classification tests knowledge primarily in:
, A) Electrical wiring and panel installation B) Plumbing code compliance C) Grading,
excavation, earthwork, drainage, and related construction practices (correct answer) D)
Structural concrete design
Rationale: The "H" Grading & Excavating examination tests knowledge specific to that
classification, including earthwork, grading operations, drainage principles, erosion control,
equipment operation, and site construction practices.
12. Which document must a licensed NC contractor display or have available at the job
site?
A) Their college diploma B) Their tax filing confirmation C) Their union membership card D)
Their current NC contractor's license certificate (correct answer)
Rationale: NC law requires licensed contractors to display or be able to produce their license
certificate. The license number must also be included on all contracts, advertisements, and bids
per NCLBGC rules.
13. The penalty for contracting without a required NC General Contractor license can
include:
A) Only a written warning for a first offense B) Mandatory community service C) Revocation of
business registration only D) Fines, civil penalties, and potential criminal misdemeanor
charges (correct answer)
Rationale: NC GS 87-13 makes unlicensed contracting a Class 1 misdemeanor. Penalties
include fines and potentially criminal charges. The NCLBGC may also pursue civil penalties
and injunctive relief.
14. North Carolina requires contractors to carry which minimum insurance for most
commercial grading projects?
A) Only workers' compensation B) Only general liability C) General liability and workers'
compensation insurance where employees are present (correct answer) D) Professional
liability insurance
Rationale: NC requires grading contractors to carry general liability insurance and, when they
have employees, workers' compensation insurance as required by NC Workers' Compensation
Act. Both are typically required by project owners and public agencies.
Contractor Exam 250 Practice Multiple Choice Questions,
answers & rationales | latest update | instant download
Core study references include: NC General Statutes Chapter 87; NC Sedimentation Pollution
Control Act (GS Chapter 113A); OSHA 29 CFR 1926 Subpart P (Excavations); NCDOT
Standard Specifications for Roads and Structures; NC Underground Damage Prevention Act
(GS Chapter 87, Article 8); NC E&SC Planning and Design Manual; and NC Administrative
Code Title 21, Chapter 12.
SECTION 1: NC LICENSING, LAWS & REGULATIONS (Questions 1–40)
1. In North Carolina, the "H" classification for Grading and Excavating contractors is
issued by which licensing authority?
A) NC Department of Labor B) NC Department of Environmental Quality C) NC Licensing
Board for General Contractors (NCLBGC) (correct answer) D) NC Secretary of State
Rationale: The North Carolina Licensing Board for General Contractors administers the "H"
(Grading) classification as a specialty classification under the NC General Contractor licensing
structure. Contractors performing grading and excavating work above certain thresholds must
hold this license.
2. The North Carolina General Contractor license law is found in:
A) NC General Statutes Chapter 89A B) NC General Statutes Chapter 87, Article 2 C) NC
General Statutes Chapter 87, Article 1 (correct answer) D) NC Administrative Code Title 21,
Chapter 50
Rationale: NC General Statutes Chapter 87, Article 1 governs the licensing of general
contractors in North Carolina, including all specialty classifications such as the "H" Grading
and Excavating classification.
3. Which of the following projects would require a licensed "H" Grading contractor in
North Carolina?
,A) Raking leaves from a residential yard B) Planting shrubs in a residential garden C) Painting a
commercial building exterior D) Grading a site for a commercial parking lot with a contract
value exceeding the license threshold (correct answer)
Rationale: Grading and excavating work with contract values exceeding the NCLBGC threshold
requires a licensed "H" Grading contractor. Landscape maintenance and painting do not
require this classification.
4. The minimum contract dollar amount that requires a General Contractor license in
North Carolina is:
A) $10,000 B) $20,000 C) $30,000 (correct answer) D) $50,000
Rationale: In North Carolina, any construction contract or project with a value of $30,000 or
more requires the contractor to hold a valid NC General Contractor license. This threshold
applies to the "H" classification as well.
5. The NC Licensing Board for General Contractors is composed of how many members?
A) 5 B) 7 C) 9 (correct answer) D) 11
Rationale: The NCLBGC is composed of nine members appointed by the Governor. The board
includes licensed contractors and public members representing the interests of consumers and
the public.
6. To qualify for an "H" Grading & Excavating license in NC, an applicant must
demonstrate:
A) A minimum of 10 years of field experience B) A college degree in civil engineering C)
Financial responsibility, good moral character, and passing the required examination
(correct answer) D) Membership in the Associated General Contractors of America
Rationale: NC law requires applicants for contractor licenses to demonstrate financial
responsibility (through a financial statement), good moral character, and competency by
passing the applicable examination administered by the Board.
7. Which license limit classification in NC allows a contractor to bid on projects with NO
upper dollar limit?
,A) Limited B) Intermediate C) Unlimited (correct answer) D) Specialty
Rationale: NC General Contractor licenses are issued at three financial limit levels: Limited (up
to $500,000 per project), Intermediate (up to $1,000,000), and Unlimited (no cap). The
unlimited license allows bidding on projects of any dollar value.
8. How often must a North Carolina General Contractor license be renewed?
A) Every six months B) Every year C) Every two years (correct answer) D) Every three years
Rationale: NC General Contractor licenses must be renewed biennially (every two years).
License holders must pay the renewal fee and certify that they continue to meet the requirements
for licensure.
9. If an "H" Grading contractor's license lapses in NC, they must:
A) Continue working until the next renewal cycle B) Apply for a new license immediately
without re-examination C) Pay a late fee within 30 days and continue working D) Cease
performing licensed work until the license is reinstated (correct answer)
Rationale: A lapsed license is not a valid license. Performing work requiring a license while the
license is lapsed is unlicensed contracting, which is illegal in NC. The contractor must reinstate
the license before resuming licensed work.
10. Under NC law, who may use the title "Licensed General Contractor" for grading
work?
A) Anyone who has completed a grading project B) Any business registered with the NC
Secretary of State C) Any person with 5 years of grading experience D) Only persons or
entities holding a valid, current NCLBGC license (correct answer)
Rationale: NC law reserves the title "Licensed General Contractor" for those who hold a valid
license issued by the NCLBGC. Misrepresentation of licensure status is a violation of NC law
and may result in penalties.
11. The NCLBGC examination for the "H" classification tests knowledge primarily in:
, A) Electrical wiring and panel installation B) Plumbing code compliance C) Grading,
excavation, earthwork, drainage, and related construction practices (correct answer) D)
Structural concrete design
Rationale: The "H" Grading & Excavating examination tests knowledge specific to that
classification, including earthwork, grading operations, drainage principles, erosion control,
equipment operation, and site construction practices.
12. Which document must a licensed NC contractor display or have available at the job
site?
A) Their college diploma B) Their tax filing confirmation C) Their union membership card D)
Their current NC contractor's license certificate (correct answer)
Rationale: NC law requires licensed contractors to display or be able to produce their license
certificate. The license number must also be included on all contracts, advertisements, and bids
per NCLBGC rules.
13. The penalty for contracting without a required NC General Contractor license can
include:
A) Only a written warning for a first offense B) Mandatory community service C) Revocation of
business registration only D) Fines, civil penalties, and potential criminal misdemeanor
charges (correct answer)
Rationale: NC GS 87-13 makes unlicensed contracting a Class 1 misdemeanor. Penalties
include fines and potentially criminal charges. The NCLBGC may also pursue civil penalties
and injunctive relief.
14. North Carolina requires contractors to carry which minimum insurance for most
commercial grading projects?
A) Only workers' compensation B) Only general liability C) General liability and workers'
compensation insurance where employees are present (correct answer) D) Professional
liability insurance
Rationale: NC requires grading contractors to carry general liability insurance and, when they
have employees, workers' compensation insurance as required by NC Workers' Compensation
Act. Both are typically required by project owners and public agencies.
