NORTH CAROLINA (NC) (H) GRADING &
EXCAVATING COMPREHENSIVE STUDY GUIDE &
PRACTICE EXAM QUESTIONS WITH VERIFIED
ANSWERS AND RATIONALES 2026-2028 EDITION |
INSTANT PDF DOWNLOAD
1. Which North Carolina agency issues the "H" Grading and Excavating
contractor license?
A. North Carolina Department of Transportation (NCDOT)
B. North Carolina Licensing Board for General Contractors (NCLBGC)
C. North Carolina Department of Labor (NCDOL)
D. North Carolina Division of Water Resources
ANSWER: B
Rationale: The North Carolina Licensing Board for General Contractors
(NCLBGC) is the statutory body that administers licensing for general contractors,
including the "H" (Grading and Excavating) classification.
2. Under North Carolina General Statutes, what is the minimum construction
contract value that requires a contractor to hold a general contractor's
license?
A. $15,000
B. **$30,000**
C. $40,000
D. $50,000
ANSWER: B
Rationale: North Carolina law requires a general contractor's license for any
construction project with a total cost of $30,000 or more, including grading and
excavation work.
,3. Which North Carolina statute governs the licensure requirements for a
grading and excavating contractor classified as "H"?
A. G.S. 89-1
B. G.S. 89-17
C. G.S. 89-15
D. G.S. 89-20
ANSWER: C
Rationale: G.S. 89-15 outlines the licensing, renewal, display, and classification
limits for contractors, including the "H" grading and excavating classification.
4. What is the minimum working capital requirement for a Limited
classification "H" contractor in North Carolina?
A. $10,000
B. **$17,000**
C. $75,000
D. $150,000
ANSWER: B
Rationale: A Limited classification contractor must demonstrate working capital of
at least $17,000, which allows bids up to $500,000.
5. What is the maximum project value a Limited classification "H" contractor
can bid on in North Carolina?
A. $250,000
B. **$500,000**
C. $1,000,000
D. Unlimited
ANSWER: B
Rationale: The Limited classification allows contractors to bid on projects up to
$500,000. Intermediate classification allows up to $1,000,000, and Unlimited has
no monetary cap.
,6. What is the minimum working capital requirement for an Intermediate
classification "H" contractor?
A. $17,000
B. $50,000
C. **$75,000**
D. $150,000
ANSWER: C
Rationale: An Intermediate classification contractor must demonstrate working
capital of at least $75,000, allowing bids up to $1,000,000.
7. What is the minimum working capital requirement for an Unlimited
classification "H" contractor?
A. $17,000
B. $75,000
C. $100,000
D. **$150,000**
ANSWER: D
Rationale: An Unlimited classification contractor must demonstrate working
capital of at least $150,000, with no monetary cap on project value.
8. How often must an "H" contractor's license be renewed in North Carolina?
A. Every year (12 months)
B. Every two years (24 months)
C. Every three years (36 months)
D. Every five years (60 months)
ANSWER: B
Rationale: "H" contractor licenses must be renewed every two years (24 months)
by the North Carolina Licensing Board for General Contractors.
, 9. Which license class in North Carolina allows a contractor to perform
unlimited earth-moving work without a monetary cap?
A. Limited
B. Intermediate
C. Unlimited
D. Specialty
ANSWER: C
Rationale: The Unlimited license authorizes all general contracting work,
including unlimited grading and excavating, whereas Limited and Intermediate
have monetary caps.
10. Under the "H" classification, which of the following is NOT authorized for
use?
A. Hydraulic excavator
B. Skid-steer loader
C. Explosive-driven demolition hammer
D. Grader
ANSWER: C
Rationale: The "H" classification permits standard earth-moving equipment but
does not allow the use of explosives, which require a separate "E" classification.
11. According to NC 811 law, how far in advance must a contractor contact
utility companies before digging?
A. 24 hours
B. 48 hours (3 full working days)
C. 72 hours
D. One week
ANSWER: B
Rationale: The NC 811 law requires contact at least 48 hours (3 full working days)
before digging to have utilities marked.
EXCAVATING COMPREHENSIVE STUDY GUIDE &
PRACTICE EXAM QUESTIONS WITH VERIFIED
ANSWERS AND RATIONALES 2026-2028 EDITION |
INSTANT PDF DOWNLOAD
1. Which North Carolina agency issues the "H" Grading and Excavating
contractor license?
A. North Carolina Department of Transportation (NCDOT)
B. North Carolina Licensing Board for General Contractors (NCLBGC)
C. North Carolina Department of Labor (NCDOL)
D. North Carolina Division of Water Resources
ANSWER: B
Rationale: The North Carolina Licensing Board for General Contractors
(NCLBGC) is the statutory body that administers licensing for general contractors,
including the "H" (Grading and Excavating) classification.
2. Under North Carolina General Statutes, what is the minimum construction
contract value that requires a contractor to hold a general contractor's
license?
A. $15,000
B. **$30,000**
C. $40,000
D. $50,000
ANSWER: B
Rationale: North Carolina law requires a general contractor's license for any
construction project with a total cost of $30,000 or more, including grading and
excavation work.
,3. Which North Carolina statute governs the licensure requirements for a
grading and excavating contractor classified as "H"?
A. G.S. 89-1
B. G.S. 89-17
C. G.S. 89-15
D. G.S. 89-20
ANSWER: C
Rationale: G.S. 89-15 outlines the licensing, renewal, display, and classification
limits for contractors, including the "H" grading and excavating classification.
4. What is the minimum working capital requirement for a Limited
classification "H" contractor in North Carolina?
A. $10,000
B. **$17,000**
C. $75,000
D. $150,000
ANSWER: B
Rationale: A Limited classification contractor must demonstrate working capital of
at least $17,000, which allows bids up to $500,000.
5. What is the maximum project value a Limited classification "H" contractor
can bid on in North Carolina?
A. $250,000
B. **$500,000**
C. $1,000,000
D. Unlimited
ANSWER: B
Rationale: The Limited classification allows contractors to bid on projects up to
$500,000. Intermediate classification allows up to $1,000,000, and Unlimited has
no monetary cap.
,6. What is the minimum working capital requirement for an Intermediate
classification "H" contractor?
A. $17,000
B. $50,000
C. **$75,000**
D. $150,000
ANSWER: C
Rationale: An Intermediate classification contractor must demonstrate working
capital of at least $75,000, allowing bids up to $1,000,000.
7. What is the minimum working capital requirement for an Unlimited
classification "H" contractor?
A. $17,000
B. $75,000
C. $100,000
D. **$150,000**
ANSWER: D
Rationale: An Unlimited classification contractor must demonstrate working
capital of at least $150,000, with no monetary cap on project value.
8. How often must an "H" contractor's license be renewed in North Carolina?
A. Every year (12 months)
B. Every two years (24 months)
C. Every three years (36 months)
D. Every five years (60 months)
ANSWER: B
Rationale: "H" contractor licenses must be renewed every two years (24 months)
by the North Carolina Licensing Board for General Contractors.
, 9. Which license class in North Carolina allows a contractor to perform
unlimited earth-moving work without a monetary cap?
A. Limited
B. Intermediate
C. Unlimited
D. Specialty
ANSWER: C
Rationale: The Unlimited license authorizes all general contracting work,
including unlimited grading and excavating, whereas Limited and Intermediate
have monetary caps.
10. Under the "H" classification, which of the following is NOT authorized for
use?
A. Hydraulic excavator
B. Skid-steer loader
C. Explosive-driven demolition hammer
D. Grader
ANSWER: C
Rationale: The "H" classification permits standard earth-moving equipment but
does not allow the use of explosives, which require a separate "E" classification.
11. According to NC 811 law, how far in advance must a contractor contact
utility companies before digging?
A. 24 hours
B. 48 hours (3 full working days)
C. 72 hours
D. One week
ANSWER: B
Rationale: The NC 811 law requires contact at least 48 hours (3 full working days)
before digging to have utilities marked.
